The COVID-19 pandemic has hit the global economy hard, and the UK housing market has not been spared from the impact. With lockdown measures in place, many home movers have been unable to complete their property purchases or sales, leaving them in a difficult financial situation. However, mortgage lenders are stepping up to offer extensions to those affected by the lockdown.
What is a Mortgage Extension?
A mortgage extension is an agreement between the lender and the borrower that extends the term of the mortgage. This means that the borrower can continue to make their monthly payments over a longer period of time, without facing penalties or defaulting on their loan. In the case of home movers affected by the lockdown, a mortgage extension may allow them to complete their property transactions at a later date, without incurring additional costs or fees.
Which Mortgage Lenders are Offering Extensions?
Several major UK mortgage lenders have announced that they will be offering extensions to home movers affected by the lockdown. These include:
- Nationwide
- Barclays
- Santander
- HSBC
- Lloyds Banking Group
How Do I Apply for a Mortgage Extension?
If you are a home mover affected by the lockdown and are struggling to complete your property transaction, you should contact your mortgage lender as soon as possible. Explain your situation and ask if they are offering extensions. Your lender may require additional information or documentation to process your request, so be prepared to provide this if necessary.
What are the Benefits of a Mortgage Extension?
There are several benefits to getting a mortgage extension if you are a home mover affected by the lockdown:
- You can avoid defaulting on your loan and facing penalties or fees
- You can avoid having to sell your property at a lower price than you had hoped for
- You can avoid having to move into a temporary accommodation or storage facility
- You can avoid losing money on deposits or other expenses related to your property transaction
What are the Drawbacks of a Mortgage Extension?
There are also some drawbacks to getting a mortgage extension:
- You may have to pay additional interest on your mortgage over a longer period of time
- You may have to pay additional fees or charges for the extension
- Your credit score may be affected if you are unable to make your payments on time
What Should I Consider Before Applying for a Mortgage Extension?
Before applying for a mortgage extension, you should consider the following:
- Your financial situation – can you afford to make the extended payments?
- Your credit score – will an extension affect your credit rating?
- Your long-term plans – do you plan to stay in the property for an extended period of time?
- The terms of your mortgage – what are the conditions of your current mortgage?
Conclusion
Overall, a mortgage extension can be a useful option for home movers affected by the lockdown. However, it is important to carefully consider the benefits and drawbacks before applying for an extension. If you are unsure whether a mortgage extension is right for you, seek advice from a financial advisor or speak to your mortgage lender for more information.