Mortgage charter 2023: What happens after the six months forbearance?

Andreg

Does anyone have any information or informed insight into whether banks will be offering customers more than one six-month interest-only period?  The mortgage charter was obviously a quick political fix to postpone the immediate impact of the cost-of-living crisis but many customers will need more than six months on interest-only.  If the cost of a repayment mortgage is more than they can bear then realistically that six month period is unlikely to be long enough to get a pay-rise or sell the property.  Mortgage rates are unlikely to fall significantly back within six months.

I wonder whether customers who are struggling will be able to go back to repayment for a month or two then apply for a further interest-only period.

amnblog

No plans for that. That would a whole new can of worms.

ACG

The government were under pressure to look like they were doing something. The pressure has subsided as rates have come down, inflation is now increasing slower than wages and everyone has moved on to Mone/Small boats or whatever else. 

I dont want to say it wont get extended but I am 99.999% sure it wont. 

Hoenir

Individual circumstances differ. Kicking cans rarely solves anything. As deferring the capital repayment simply increases the challenges ahead. 6 months allows a breathing space for people to make decisions. 

pauldavies54321

Supposedly you can only use the interest only period once. But I suppose in extreme circumstances lenders allow longer.

Hoenir

pauldavies54321 said:

Supposedly you can only use the interest only period once. But I suppose in extreme circumstances lenders allow longer.

Communication with the lender and having a plan is key.