Making Mortgage Installments Manageable
When we take out a mortgage, it may be affordable. Circumstances change, however, and what was affordable a decade ago may no longer be. The mortgage, for example, is normally the one big debt repayment that you need to meet.
Finding a way to make these payments more manageable makes sense in the long run. Most people opt to remortgage their properties as a way of extending the term to the full again. This can work but do aim to pay extra in as and when you can or you pay a lot more in interest payments. Also watch out for the fees to remortgage, these may make it an unfeasible solution.
That said, if the only way you will be able to afford to continue with the bond is if it is extended, you will need to just swallow the charges. You can also apply to just pay the interest – be aware though that this may mean extending your bond indefinitely because you literally just pay the interest every month and no capital at all. Use the Lacve mortgage payment calculator to learn more.
The government does offer some relief to over indebted consumers when it comes to bond repayments – The Making Home Affordable Plan can come to your rescue in some cases. It is a good idea to check with the mortgage company about this.
If no other alternative is available, make an appointment to see the loan officer at the bank. Take along proof of income and expenses and lay it all out for them. Do this before missing payments and they are more likely to try and help you. Most banks have a number of homes on their books that have be repossessed and they do not want more. They may be able to find a way to assist you that you had not considered. If the bank knows there is a problem, it is in their interest as well to sort it out and to come to a mutually agreeable solution. Just make sure that you do stick to your end of the amended agreement though – do not promise things that you cannot make happen. Return the situation to normal as soon as possible.
Make sure that you do pay in extra when you are able so that the bank can also see that you are trying.