New rules help homeowners reduce mortgage repayments

Thousands of homeowners struggling with the cost of living have taken advantage of new rules that can help them to reduce their monthly mortgage repayments. Lenders signed up to the government's Mortgage Charter, introduced last June, allow temporary switches to interest-only loans or extensions to terms of residential mortgages without customers having to go through affordability checks. Between July and January repayments for about 123,000 loans were reduced, according to the Financial Conduct Authority. "The rules were introduced at a time when cost of living issues were at their peak. With inflation coming down we will hopefully see fewer people switching to interest-only or lengthening their term because this can cost you more in the long run," said David Hollingworth from the mortgage broker L&C.  

The Times (30/03/2024)