A new deal will extend the repossession ban and the mortgage length to 25 years for struggling homeowners.
New Deal Will Extend Ban Repossessions and Mortgage Length to Help Struggling Homeowners
A new deal approved will provide relief to struggling homeowners by extending the ban on repossessions and the mortgage length, which will give them some time to pay off their mortgages until the given deadline.
According to reports from i, the deal will ban repossessions of struggling homeowners who continuously seek help with their mortgages until they receive at least 12 months of notice to allow them to negotiate their monthly repayment costs in advance.
Aside from banning repossessions, the new deal will also extend the mortgage length to 25 years, depending on the negotiation with the mortgage lenders, allowing homeowners to borrow until retirement.
READ ALSO: Deadline Approaching: Apply Now For Mortgage Assistance Through HomeHelpMN
New Deal Will Affect Struggling Retired Homeowners Despite Helping Them Prolong Repayment Terms
Despite prolonging the repayment terms for homeowners, the new deal will reportedly affect homeowners when they retire as they will have to continue paying for their mortgages until their 80s, which will only ruin their retirement plans.
The new deal will also have banks profiting from the homeowners because the longer the mortgage lengths, the higher the interest the struggling homeowners will have to pay.
READ ALSO: Bipartisan Vote In House Approves Repeal Of Mortgage Rule Affecting Homebuyer Costs
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