Don't put your head in the sand over mortgage worries, says finance expert

Householders facing massive mortgage repayment rises have been urged not to bury their head in the sand, but go and talk to their mortgage provider.

Ed Marshall
Ed Marshall

Shrewsbury finance expert Ed Marshall says there are ways that the payments can be altered to help people cope with the rocketing cost of living.

With interest rates rising, some lenders have put a stop on issuing new mortgages.

The chartered financial planner and director, of Kingsland Wealth Management, said that the current crisis was putting the financial squeeze on everyone.

And Mr Marshall said that, while mortgage lenders built a stress test into their calculations when approving mortgages, the rise in interest rates, coupled with rising prices, was overpowering that test.

He said: "If you have a mortgage already and your rates are increasing or you are coming to the end of a fixed rate and you are worried, the first thing is to speak to your lender.

"They have a responsibility to help you to protect your mortgage."

He said among the options could be to extend the life of the mortgage or to pay the interest only for a while.

"You will be able to work out a plan between you to keep you in your home," he said.

"The problems arise when people bury their head in the sand."

Those trying to get a new mortgage would still have to go through the strict financial checks and, he said, it may be difficult for a time to find a mortgage.

"However, the expectation is that the price of houses could drop if people can not afford mortgages to buy properties."

Mr Marshall also urged those in severe financial difficulties to look at seeking help and advice from charities such as the Step Change debt charity or the Citizens Advice Bureau.

"Step Change is very proactive, not for profit and can really help people," he said.

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