The British government and banks agree on the mortgage payment facility

Banks and mortgage lending companies in the UK will offer greater payment facilities for Mortgages For those with recent result difficulties rise to 5% Interest rates, the British Chancellor of the Exchequer, Jeremy Hunt, announced on Friday.

The announcement he made on Thursday Bank of England That raised half a point to 5% interest rates to try to control year on year inflation rate rises, located in 8.7%have drowned many citizens of this country, Afraid of not being able to make mortgage payments.

Among the agreements reached today, lenders will be able to make a temporary change to the terms of their mortgages and later, within six months, Back to the terms of the initial contract. This measure would allow, according to Hunt, for example, Reduce your monthly payments to pay off a mortgage loan for a period of timeand pay only the amount corresponding to the interest on the home loan.

Speaking to the media, the minister said that “there are two groups of people who are particularly concerned: those who face a real risk of losing their homes because they are behind in their mortgage payments, and those who have to change their mortgages because interest rates are running out and they are worried about The impact on family finances of higher mortgage rates.

Follow three approaches

He referred to that in today’s session The government agreed with banks and mortgage loan companies Three very important things. The first is that “a person can talk to their bank and mortgage lender without having any effect on their credit history.”

See also  The debate over hybrid work will increase in 2022

He added that “if anyone is affected by the impact on the family’s money and Change the terms of the mortgage to interest only or extend the terms of the mortgage And you want to go back to the original mortgage agreement, In six months he will be able to do it.

“Finally, for those people who are at risk of losing their homes in this extreme situation, banks and mortgage lenders can offer alternatives,” said the politician, who recalls. In this extreme case, they agreed that they would give A period of at least 12 months “before the forcible seizure takes place.”

Hunt further emphasized that Tackling high inflation is ‘number one priority’ to the prime minister, Rishi Sunak, and that of The government is “fully committed to supporting the Bank of England To do whatever it takes.”

Leave a Reply

Your email address will not be published. Required fields are marked *