What if my mortgage account is currently 'suspended'?
Your mortgage account may currently be 'suspended', meaning you are no longer making any monthly payments but have a balance outstanding. If this is the case we still hold a charge over your home and interest is being charged on the remaining balance. Over several years this balance could grow considerably as interest is added.
By paying off any balance you can become mortgage free, meaning that we will release the charge over your property and send you your title deeds, as well as ensuring that you are not accruing interest unnecessarily.
You can find out if your mortgage is suspended by referring to your most recent mortgage statement. Contact us to find out more information about paying off your suspended mortgage.
Improve the likelihood of paying off your mortgage in the future
With property prices falling or remaining depressed, you could find that your property is worth less in the future than you might expect. However you can make it easier to pay off your mortgage in the future by taking action now.
If you currently have an interest-only mortgage, you may want to switch to a Repayment mortgage now. This will allow you to start paying off the capital each month and reduce the amount that you will owe when your mortgage term ends.
If you have an interest-only mortgage, you should also ensure that you have a suitable investment vehicle in place and should check that this is on track to generate sufficient funds so you can repay your mortgage in full at the end of your term. You may need to consider increasing your payments if there is likely to be a shortfall.
Finally, you could also start making overpayments on your mortgage to reduce the amount that you will owe when your term ends.
To discuss any of these options, please call us.