Mortgage companies, are in many cases, charging very high penalites for those customers who fall into arrears. However, the penalties and charges vary considerably from company to company. It is worth finding out what your mortgage lender will charge if you miss, even one month’s penalty. If you become aware of how much they charge, you will be motivated to either change lender or make sure you never miss a mortgage payment.
One of the Highest Mortgage arrears Penalties is the Cheltenham & Gloucester charge £372 for 3 months arrears and a debt counselling session.
Halifax charge a higher interest rate on mortgage arrears.
Royal Bank of Scotalnd and Bradford & Bingley charge £35 for a returned cheque.
For those customers who go into arrears, these extra penalty charges and higher interest rates only serve to make their financial situation more difficult.
Best Mortgage Lender.
The best mortgage lender in the field of charging for mortgage arrears is HSBC, they don’t charge for either missed payments or debt counselling.