Experts are warning consumers that missing a payment on a flexible loan may have a bad effect on their credit rating. Banks and mortgage lenders report on missed flexible loan payments and even one bad record can result in a lowered score, which may make it difficult to get other credit, loans or a refinance. In order to preserve their rating, consumers are reminded about the importance of always making their flexible loan payments on time.
“If you miss a mortgage payment, this will be recorded on your credit file and may make it more difficult to get a mortgage, or to remortgage, in the future,” says Melanie Bien, of the mortgage broker Savills Private Finance. “You must ensure that you switch back to a repayment deal as soon as you can afford to do so, otherwise the capital will not be repaid by the end of the mortgage term.”
Jonathan Cornell, of Hamptons International Mortgages, says: “Maintaining your mortgage payment should be your main priority. If you are on a standard variable rate or another rate without penalties, you could ask your lender what other rates they have to offer.”
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