Borrowers urged not to cancel mortgage debits
[ad_1]
Borrowers have been urged not to cancel their pre-authorized debits for mortgage payments as rumors are circulating that many are advised to do so before speaking to lenders.
Rob Griffiths, director of the Mortgage Market Alliance, warned that even though people are concerned about the time it takes to get mortgage payment leave, they could seriously damage their credit records.
He said: We have heard from borrowers that they need to cancel their mortgages immediately before talking to their lender – we seriously urge people not to.
COVID fuels change in long-term care plans
“You need to talk to your mortgage lender first to find out your options and to make a formal arrangement.
“Ideally, present the options presented to you to your mortgage advisor so that they can recommend the best course of action for you. But don’t cancel direct debits without an agreement in place – if borrowers do, it will likely be recorded as a missed payment and could show up on their credit report.
“While borrowers may think time is running out, it is better to make a formal agreement with the lender than to act without them.”
Subscribe to our daily email
[ad_2]