Crosswords3 mins ago
Support Mortgage Interest
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A friend of mine who has become redundant needs to apply for Support Mortgage Interest (SMI).(I am aware he cannot apply for first 6 months)
How will this affect him when his 2 year mortgage term ends with his current lender -will they offer him less favorable interest rates ?
Is there anything he should be wary of ?
I guess his LTV will have some bearing -it is a favourable @30% or will the lenders computers be flashing red?
Thxs
How will this affect him when his 2 year mortgage term ends with his current lender -will they offer him less favorable interest rates ?
Is there anything he should be wary of ?
I guess his LTV will have some bearing -it is a favourable @30% or will the lenders computers be flashing red?
Thxs
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Can he afford to pay his monthly mortgage repayments out of his redundancy money? If he can't keep up the payments and falls into arrears then he is unlikely to get one of the more favourable rates from his lender. But if he can keep up the payments and doesn't fall behind then I don't see why he should be penalised. However, if he is on a Repayment mortgage, he might be better to ask to move to an Interest Only mortgage until he gets another job. I believe he will get only the interest part of the mortgage paid if/when he gets SMI anyway. I hope he manages to keep his head above water and not lose his home tali.
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