How will mortgage help work

[Whattheactualwhatnow]

Just wondering if anyone has any idea how the mortgages help will work, in particular the bit about changing your mortgage (length of term or interest only) for 6 months and then being able to change back without penalty. Like what the criteria might be for who could apply maybe?

May be individual to banks but you can contact yours to find out. Just keep in mind that if you reduce payments or move to interest only that you will pay more in the long run.

You need to speak to your bank.

I gess if it is a fixed term (eg 6 months) and you stay with the same provider, there will be an admin fee.

Thanks. Think 6 months would give us some breathing space but probably wouldn’t go for it if it was going to be a massive pain.

I think it's a work in progress and so far it sounds like the help won't be that helpful except that it might reduce repossessions and people's credit ratings won't necessarily be destroyed if they manage to keep up with the 'help' version of their mortgage agreement.

Which is something, but people hit by a huge increase in their mortgage payment, alongside higher food, fuel and other costs, will still be paying out a lot more than they were before so could still struggle and have a lot less spare money than they're used to. Plus increasing the term/going interest only could cost thousands extra, on top of the increased amount paid due to higher interest rates.

Sorry, forgot to add, this is something Martin Lewis has been campaigning on and talked about in his recent podcast.

https://www.moneysavingexpert.com/site/listen-to--the-martin-lewis-podcast-/

The repossession delay seems to be making the banks a bit of extra money in arrears/fees owed before they repossess, I can't really see how it helps at all. You're not going to get a new deal if you're in arrears even if interest rates dramatically dropped in that twelve months grace period to allow you to be able to afford your repayments again. Sometimes prolonging these circumstances isn't the better option at all.