29 Sep Do you have a Halifax mortgage?

Do you have a Halifax mortgage?

Are you struggling with or worried about money over the next 6 months to a year?

Most lenders have signed up to the mortgage charter where you can apply various options to your mortgage.

One of the options is to take interest only for six months. This could dramatically reduce your mortgage payments, and Halifax – we are checking with other lenders as well – will fix the monthly payments for those six months regardless if you are taking a new rate as long as you aren’t due to change the following month, otherwise they will use that rate.

Therefore the latest you could do it is around 6 weeks before your rate is due to change, so if you are on a good low rate at present and are due to change next year, for example, it may be worth waiting until 6 weeks before that change. If you are unsure of when your rate is due to end please get in touch, all we need is your mortgage account number and we can check and set electronic diary dates for you so that you don’t miss out.

Changing to interest-only doesn’t affect your credit score and you can still change to a new rate if applicable, but what you should be aware of is that your monthly payments will be adjusted accordingly after the interest-only period, to account for not paying capital and interest during that time and your mortgage debt will not reduce during that time.

We recommend only using this if you are genuinely struggling or you want to make it easier for a period of time, such as over the winter, due to increased household bills such as gas and electricity. This option could help you back on your feet a little.

There are other options like extending your term to reduce your payments or taking payment holidays. If you are with Halifax, all you need to do is go online and select the option you want and they will action it.

As a broker, we can give advice so please get in touch if you would like some further help.

Getting you the deal, that is Best 4U!