Sadiq Khan calls for return of mortgage payment holidays amid rising inflation

Sadiq Khan calls for return of mortgage payment holidays amid rising inflation

S

adiq Khan has urged the Government to reinstate mortgage payment holidays to ease the monetary burden on owners amid hovering inflation charges.

It comes following new survey data from City Hall which discovered that greater than 1 / 4 of London owners say they will battle to make mortgage funds this winter because the cost of residing disaster deepens.

Last month, the common price for a two-year fixed-rate mortgage rose to 6.53 per cent – the best since August 2008.

The Mayor of London has called on ministers to present extra help for owners, together with by reintroducing mortgage payment holidays.

First launched in March 2020 because the UK entered the primary national lockdown of the Covid-19 pandemic, mortgage payment holidays allowed owners to quickly scale back or defer mortgage funds with out impacting on their credit score scores.

Sadiq Khan additionally referred to as for the reintroduction of the Mortgage Rescue Scheme which, prior to 2014, allowed households battling mortgage repayments to keep of their houses by promoting them to social landlords and persevering with to live there as tenants.

Mr Khan said this is able to be the “right and proportionate approach” to tackling the continued disaster which “is only going to become more significant and dangerous”.

He said: “Many London homeowners already face sizable monthly mortgage payments, alongside rising costs and stagnant wages. With re-mortgaging rates now hitting levels not seen in more than a decade due to the economic chaos created by this government, it is essential that ministers act to ensure Londoners do not pay the price by losing their homes.

The Resolution Foundation estimates that London will be the area hit hardest by rising inflation, with average annual mortgage payments set to rise by more than £8,000 by 2024. There are an estimated 400,000 households in London facing mortgage renewals by that time.

Paula Higgins, chief executive of HomeOwners Alliance, said homeowners are facing a “gloomy winter” due to a mix of rising mortgage charges and the hovering cost of food and energy.

She said: “We need a government plan to support these households coming off fixed-term mortgages and this needs to be communicated sooner rather than later to reduce their financial anxiety.

“We support the mayor’s call for action and remind homeowners struggling with increased rates that they are not alone. Their first port of call should be to speak to their lender about options, such as extending the mortgage term to reduce monthly payments, reducing what you pay for a short period, mortgage holidays or changing temporarily to interest-only payments.”

Source:standard.co.uk

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