Many consumers are finding it increasingly difficult to keep up on their motor loan payments as interest rates continue to climb and the housing market worsens. For those stuck with higher than normal house payments, the motor loan payment is usually the first thing to go. However, the costs for mortgages may be on the decline and this should help those that are struggling with their motor loans to stay current on their payments.
“We are living through a period of inflating prices and mortgages are no exception,” explained Francis Ghiloni, mform’s marketing and business development director. “The Bank of England can cut rates but as we have seen over the past year there is no guarantee this will translate into a lower true cost of mortgages at least in the short term.”
Melanie Bien, of Savills Private Finance, the broker, said: “While a potential £5,000 for nothing is welcome, £10,000 won’t get you very far. Lenders have restricted their LTVs on new build even more so than on mainstream residential lending so you will need a significant deposit. You are also restricted to a Persimmon home.”
Related reading: Motor Loans
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