 Or they could switch to interest only to stop paying the original capital they borrow and only pay for the interest. '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,' he said. 'You will have to pay back the amount missing and the interest after so future repayments after this will be higher.' The Government also offer Support for Mortgage Interest (SMI), paid out as a loan to cover 2.65% of someone's interest, for people on benefits. Lenders can also offer borrowers payment reductions, permanent extensions and more for those in serious trouble. Thought they could dent credit scores. 'I know many of you don't trust our banks or your lenders and I've been partly responsible){kind=link}
NEWS… BUT NOT AS YOU KNOW IT
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Martin Lewis has issued a dire warning as mortgage rates hit an eye-watering high of 6.66% – but said homeowners still have a few tricks up their sleeves.
Homeowners are facing difficult decisions and may continue to as experts say the base interest rate of 5% could rise to as much as 7% and only cool off next year.
Mortgage rates have soared since then prime minister Liz Truss and chancellor Kwasi Kwarteng’s tax cuts and spending plans cratered the economy.