Martin Lewis issues 'nightmare year' warning for renters

manchestereveningnews.co.uk:

Martin Lewis has warned renters there will be a "nightmare year" ahead due to rising mortgage and rental costs. The money-saving expert said he expects mortgage arrears to go on the rise.

He added that he is "very worried" for renters and stressed that rules for renters should be re-examined. Appearing on ITV's Good Morning Britain today (June 27), he said: "It’s going to be a nightmare year.” It comes after a new mortgage charter was agreed to by lenders representing around 85 per cent of the mortgage market, following a meeting between the Chancellor and banks on Friday last week. Try MEN Premium for FREE by clicking here for no ads, fun puzzles and brilliant new features. The new charter allows customers who are up to date on their payments to switch to interest-only payments for six months or extend their mortgage term in order to reduce monthly payments.

Borrowers will also have the option to revert to their original term withing six months by contacting their lender. Asked if he expects to see a big rise in home repossessions, Mr Lewis said: “No, I don’t think we will… for two reasons. “One, because one of the agreements that was made at the meeting on Friday is banks will not look to repossess, unless the individual wants that to happen, for at least a year from the first missed payment.

So there is a little bit of time being bought there. “And two, because the courts are absolutely clogged up. Even if you started repossession proceedings now, from what I’m hearing it would take 18 months before they were heard.” He continued: “I think we’re going to see some very substantial arrears…I think we’re going to see people voluntarily getting rid of their homes. Join our WhatsApp Top Stories and Breaking News