Martin Lewis explains help for people struggling with soaring mortgage payments

Martin Lewis has warned ‘you will pay more,’ however there is six-month relief offered to struggling homeowners that could be a lifeline for many. Addressing the mortgage crisis during a special edition of the Martin Lewis Money Show Live yesterday, the money saving expert ran through temporary help for people struggling with soaring mortgage payments. He explained the first is to extend the mortgage term e.g., from 15 years to 25 years. This reduces monthly payments in the short-term. The second is people can switch to interest only, so they stop paying the original capital they borrow and just cover the interest. Mr Lewis continued: ‘They will both bring your payments down and give you a break, especially if you’ve just gone onto a higher fix. It will give you a few months to sort your finances out. Martin Lewis explained the temporary help available for homeowners (Image: GETTY) ‘You will have to pay back the amount missing and the interest after so future repayments after this will be higher.’ With the Bank of England’s base rate sitting at five percent, pushing mortgage prices up, a new mortgage charter has been introduced to help homeowners worrying about having to pay more. Mr Lewis explained from August, the Government, Financial Conduct Authority and most banks have agreed to offer two automatic options to help people ‘get over the hump’. Mortgage rates are on the rise (Image: GETTY) It should be noted that the temporary help lasts six months only and then will automatically revert back to one’s deal. How much higher someone pays after the six months depends on how long they have left on their mortgage. For example, if someone is paying £700 a month with 20 years left and they take the six months, their new payments afterwards could be up to £710 each month. Whereas if someone only had one year left, there payments could rocket up, so people are encouraged to do their calculations. Britons can get longer than six months, however, it’s different and people will need to do an affordability check and it will go on one’s credit file, Mr Lewis said. Mr Lewis added: ‘This help will be available with just a click on the website. If you’re not sure about it, I would get advice first. ‘You can do it without affordability checks, and it won’t go on your credit file. ‘These were my two main suggestions so people wouldn’t be scared to get help.’ The Martin Lewis Money Show is available on ITVx.