Martin Lewis: The new mortgage 'forbearance' help – how big a change is it, is it mandatory?

MSE_Eesha Posts: 162 MSE Staff
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This is the discussion to link on the back of Martin's blog. Please read the blog first, as this discussion follows it.


  • JaneyG3011
    Do we know when the temp support help kicks in please?  I cant see on Martins blog when the temporary non credit affecting support will start.  I came out of my fixed deal contract in February onto a BoE tracker and with the latest increase I am having to find an extra £671 a month to cover the increase in repayments.  I really need the support to lower my payments as soon as possible.  I have had to put my house on the market but until I sell my house I need help as the payments are unmanageable.  I called Nationwide but they were unhelpful in helping me understand when they would announce their temporary support packages - I was told to keep checking their website.   Thanks 
  • blondeangel
    blondeangel Posts: 22 Forumite
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    My lender is Nationwide via tmw. Im already on interest only mortgage and have about 8 years left with 145000. Im planing to sell to downsize and be mortgage free. Currently on esa support and PiP retire next year. 
    This dosent appear to help me as i spoke to NW triage and said the only help is to reduce payment for 3 months and the rest becomes arrears with mark on credit rating. Then i need to paid extra interest on arrears so costing me more in long run. Dwp only pay £295 4 weekly with interest accumulated on top when i sell house. Although my mortgage is going to be 6.99% over 800 a month from £230. 

    Any help i can't get locked in as selling. I have about £200 a month left After bills etc. =£400 if I paid full payment 
    The government doesn't care sbout us mortgage prisoners 
  • Swagger1980
    Swagger1980 Posts: 13 Forumite
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    I think it would also be helpful to allow people to port their Mortgage without further credit checks. Can you push the Chancellor to look into this Martin?
  • silvercar
    silvercar Posts: 47,072 Ambassador
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    Would it allow someone with an interest only mortgage to extend their term by 6 months?
    As already IO it won’t change the monthly payments, but a term extension would give them some more time to find a solution, their current mortgage ends in 2 years. 
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  • Croydonchild
    Dear Martin Lewis
    I have a problem I applied on the 31st July 2023 to one of my Lenders the Together Group who I have a secured loan with. I explained that we as a family were vulnerable due to the increased variable rate that has risen to 12.3% with them , the Halifax main mortgage has already agreed to allow interest only payments I wished to do the same with Together. They explained that they were not a signature to the Mortgage relief Agreement with the government, so were under no obligation to offer help to goto interest only , they would only offer assistance if I filled in a complete affordability check before they would offer any assistance., I then stated as a vulnerable customer they had a duty of care to place my request above their affordability test. They refused to offer any assistance unless I went through their affordability test.
    I raised a formal complaint with them and have had a Formal Final response stating.

    "The FCA’s new Consumer Duty regulation came into force on 31 July 2023 and, as you pointed out, this states that regulated companies need to provide the support customers need, when they need it. This does not mean we no longer need to ensure that the support we provide to customers is appropriate and affordable. As a responsible lender it is necessary that we do this and in order to do so we would look to complete a review of your financial situation before we agree to forbearance such as this."

    I believe this is in direct contradiction to the new FCA's code of conduct. Especially with the industry agreements that have been accepted by so many lenders, I am as a customer being penalised by their actions . I would seek guidance and assistance in taking this matter forward on behalf of all customers who are being penalised by their lenders.

  • Andreg
    Andreg Posts: 187 Forumite
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    This is a stoozing opportunity for anyone on a low fixed rate capital-repayment mortgage.  Rather than pay off the low-interest mortgage, pay off other higher-interest debts, or simply invest the money in a 5% savings account instead.

    Banks must be happy that this scheme will reduce their mortgage loss provisions in the short term, but after the six months period, the repayment shock will hit all the worse.  'Extend and pretend'...
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