The Mortgage Market Alliance (MMA) has announced several steps that mortgage borrowers can take to alleviate fears during the coronavirus outbreak.
The advice from the MMA included calls for borrowers not to cancel their mortgage direct debits immediately before they had spoken to their lender.
Chancellor, Rishi Sunak, announced on Tuesday that mortgage lenders will provide a three-month mortgage holiday to people who need help during the Covid-19 outbreak.
The MMA, a new organisation, was recently launched to raise awareness among consumers about the range of mortgage options available, and highlight the importance of advice.
MMA director, Rob Griffiths, suggested mortgage lenders had been “inundated with worried borrowers” contacting them about future mortgage payments because of the impact of the coronavirus.
“It’s an important conversation to have however, if possible, customers might want to use other forms of communication with lenders, if the phone lines are busy,” Griffiths added.
“Many lenders are trying to prioritise both vulnerable customers and those with urgent needs, so it may take a little time to respond to all enquiries but they will respond.
“In the meantime, we’ve heard of borrowers being told to cancel their mortgage direct debits immediately before they speak to their lender – we would seriously urge people not to do this.
“You must speak to your mortgage lender first to find out what options are available to you and in order to agree a formal arrangement. Ideally, take the options presented to you to your mortgage adviser so they can recommend the best course of action for you. But do not cancel direct debits with no agreement in place – if borrowers do this it is likely to be registered as a missed payment and could appear on their credit file.
“Even though borrowers might think time is of the essence, it is better to secure a formal agreement with the lender than act without it.”
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