I believe that when many people sign a mortgage agreement, they only follow the instructions of their solicitor and sign in a specific place. Many people do not read the bank’s mortgage agreement carefully.
Did you know? Most banks’ mortgage contracts clearly state that the bank will have the right to increase the mortgage interest rate if the borrower defaults on the mortgage. The interest rate may be increased by up to 0.75%. If you do encounter a similar situation, what should you do?
When you have been in arrears for 2 months in a row and the bank has increased your mortgage interest rate, you can go to the bank to discuss this in person. Generally, if you make regular monthly payments for the next 6 months, the bank may reduce your mortgage interest rate back to the original rate.
If you find that you cannot afford your monthly mortgage payments, you should report this to your bank as soon as possible so that they can assess and advise you properly. You can also avoid blacklisting or penalties if you reach an agreement on extending your repayment, for example.
