| Mortgage holidays 05:04 - Mar 20 with 3983 views | textbackup |
Got a text about this earlier today from barclays, very fortunate that i'll continue to be paid through all this, so having a break from mortgage isn't something we will need to have.
however, just for ease do you think the mortgage companies will just blanket stop them all, or you'll be able to opt in or out?
My thinking is if everyone that can continue to pay, does so, then the strain isn't as huge as if everyone does it.
On the flip side if they do stop them all that means we'll have a decent chunk of money spare each month that could help family and friends that wont be getting any income. |  |
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| Mortgage holidays on 07:17 - Mar 20 with 3832 views | itfcjoe |
I think we may take one, they add the interest to your mortgage balance so it doesn’t really effect the banks as just extends your term by the 3 months as it is
Mrs has just gone back after maternity leave and savings been drained, a decent opportunity to add some money back into rainy day fund in case this does carry on for longer and we need it for any reason. Already paused gym subscription and sky sports so that will help |  |
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| Mortgage holidays on 07:18 - Mar 20 with 3813 views | Bluefish |
You will need to request it and it will just add on at the end of your term. A mortgage holiday has probably always been available to you.
Similar to you I considered it, mainly because it would either be handy in an emergency or pay for a garage conversion but I am going to hold off because we have been trying to reduce our remaining length. Mine and the missus firm will be hit hard while it continues but we both hard for huge global corporates so you'd hope they will look after people |  |
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| Mortgage holidays on 09:02 - Mar 20 with 3729 views | SWGF |
| Mortgage holidays on 07:17 - Mar 20 by itfcjoe |
I think we may take one, they add the interest to your mortgage balance so it doesn’t really effect the banks as just extends your term by the 3 months as it is
Mrs has just gone back after maternity leave and savings been drained, a decent opportunity to add some money back into rainy day fund in case this does carry on for longer and we need it for any reason. Already paused gym subscription and sky sports so that will help |
We're thinking about doing it, Mrs SWGF only has two weeks at work before starting a new job (and a new probation period). Might do it to stick a few quid in savings or, as Texters says, there's some cushion for others should they need it. |  |
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| Mortgage holidays on 09:59 - Mar 20 with 3688 views | OsborneOneNil |
I’m an Independent Mortgage Broker and it won’t be a case of deciding if you fancy 3 months off from paying the mortgage. The lenders will have their own qualifying criteria as to who can take advantage of this break. As of yesterday morning Nationwide still hadn’t finalised their criteria, but expect them to ask for proof you are struggling or can’t pay the mortgage. Nat West, I’m told, appear to be the most liberal on this with a more flexible approach.
Guys, it’s meant for the people that are genuinely struggling, not for people who can continue to pay without an issue. You couldn’t contact banks via our Intermediary lines yesterday as all staff have been placed to answer calls on the 3 month relief helpline. |  | | |
| Mortgage holidays on 10:05 - Mar 20 with 3672 views | itfcjoe |
| Mortgage holidays on 09:59 - Mar 20 by OsborneOneNil |
I’m an Independent Mortgage Broker and it won’t be a case of deciding if you fancy 3 months off from paying the mortgage. The lenders will have their own qualifying criteria as to who can take advantage of this break. As of yesterday morning Nationwide still hadn’t finalised their criteria, but expect them to ask for proof you are struggling or can’t pay the mortgage. Nat West, I’m told, appear to be the most liberal on this with a more flexible approach.
Guys, it’s meant for the people that are genuinely struggling, not for people who can continue to pay without an issue. You couldn’t contact banks via our Intermediary lines yesterday as all staff have been placed to answer calls on the 3 month relief helpline. |
It wouldn’t surprise me if Nationwide end up just allowing anyone without much proof. They are generally pretty liberal
The banks don’t lose out on this, they just extend the term, add the interest into mortgage and in most cases don’t even worsen your credit rating | |
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| Mortgage holidays on 10:10 - Mar 20 with 3661 views | portmanking |
| Mortgage holidays on 10:05 - Mar 20 by itfcjoe |
It wouldn’t surprise me if Nationwide end up just allowing anyone without much proof. They are generally pretty liberal
The banks don’t lose out on this, they just extend the term, add the interest into mortgage and in most cases don’t even worsen your credit rating |
Unfortunately the previous poster is correct.
My cousin is a mortgage broker too and has said that many people have tried to claim the holiday without realising they had to provide proof of minimal funds/income - resulting in many declined requests. |  | | |
| Mortgage holidays on 10:41 - Mar 20 with 3595 views | ipswich78 |
| Mortgage holidays on 10:05 - Mar 20 by itfcjoe |
It wouldn’t surprise me if Nationwide end up just allowing anyone without much proof. They are generally pretty liberal
The banks don’t lose out on this, they just extend the term, add the interest into mortgage and in most cases don’t even worsen your credit rating |
Cashflow? |  |
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| Mortgage holidays on 00:10 - Mar 21 with 3448 views | textbackup |
| Mortgage holidays on 09:59 - Mar 20 by OsborneOneNil |
I’m an Independent Mortgage Broker and it won’t be a case of deciding if you fancy 3 months off from paying the mortgage. The lenders will have their own qualifying criteria as to who can take advantage of this break. As of yesterday morning Nationwide still hadn’t finalised their criteria, but expect them to ask for proof you are struggling or can’t pay the mortgage. Nat West, I’m told, appear to be the most liberal on this with a more flexible approach.
Guys, it’s meant for the people that are genuinely struggling, not for people who can continue to pay without an issue. You couldn’t contact banks via our Intermediary lines yesterday as all staff have been placed to answer calls on the 3 month relief helpline. |
as I said - "My thinking is if everyone that can continue to pay, does so, then the strain isn't as huge as if everyone does it."
thanks for answering my original question though, as I was just unsure how they'd go about it.
I am glad they'll be wanting proof, because some would take the piss | |
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| Mortgage holidays on 17:45 - Mar 24 with 3175 views | itfcjoe |
Just as an update on this, I’ve had mine approved with no evidence asked for etc.
I am now furloughed so glad I applied, but this isn’t normal times as I suspected | |
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| Mortgage holidays on 18:01 - Mar 24 with 3121 views | strikalite |
| Mortgage holidays on 17:45 - Mar 24 by itfcjoe |
Just as an update on this, I’ve had mine approved with no evidence asked for etc.
I am now furloughed so glad I applied, but this isn’t normal times as I suspected |
The length of the mortgage doesn't change(they don't just add three months at the end)it's just the percentage will increase very slightly after the three month "holiday"...
So for example if you're paying £600 a month now you'll probably be paying £610 in three months time.....that's the only change..
I think that's right Joe? |  | | |
| Mortgage holidays on 18:10 - Mar 24 with 3093 views | itfcjoe |
| Mortgage holidays on 18:01 - Mar 24 by strikalite |
The length of the mortgage doesn't change(they don't just add three months at the end)it's just the percentage will increase very slightly after the three month "holiday"...
So for example if you're paying £600 a month now you'll probably be paying £610 in three months time.....that's the only change..
I think that's right Joe? |
Yep, basically any interest due over the 3 months gets added onto your mortgage balance so slightly adjusts the payment upwards | |
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| Mortgage holidays on 18:35 - Mar 24 with 3050 views | Dennyx4 |
| Mortgage holidays on 18:10 - Mar 24 by itfcjoe |
Yep, basically any interest due over the 3 months gets added onto your mortgage balance so slightly adjusts the payment upwards |
Will depend lender to lender, some are extending the term of the mortgage by 3 months too.
Your payment will naturally increase, as you quite rightly state the interest will still accrue on the balance for the three months holiday taken. This increase will apply whether a 3 month increase or not, obviously a bigger increase to monthly payments if the mortgage doesn't get extended at the end of the term.
If you do not need the holiday, it is better not to take it, as most T&C's will only allow one payment holiday during your mortgage. |  | | |
| Mortgage holidays on 15:35 - Jan 28 with 2291 views | AngelaDavies |
Thank you for your thoughts, guys. I also have questions about the mortgage, I was able to understand something from your comments, but I still think that I need to contact a good mortgage broker to find the right solution to my problem. |  | | |
| Mortgage holidays on 15:40 - Jan 28 with 2265 views | hype313 |
| Mortgage holidays on 15:35 - Jan 28 by AngelaDavies |
Thank you for your thoughts, guys. I also have questions about the mortgage, I was able to understand something from your comments, but I still think that I need to contact a good mortgage broker to find the right solution to my problem. |
I was told/warned that it could have an adverse effect on your credit rating or certainly be looked at when coming to re-mortgage, how true that is I'm not so sure. |  |
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| Mortgage holidays on 15:51 - Jan 28 with 2233 views | BlueStreak |
| Mortgage holidays on 15:40 - Jan 28 by hype313 |
I was told/warned that it could have an adverse effect on your credit rating or certainly be looked at when coming to re-mortgage, how true that is I'm not so sure. |
We have just taken a 3 month break with YBS and no proof was required and we were told that it wouldn't have any adverse effect on the CS.
I have a CS check come through each month so will be interesting if that is true. |  | | |
| Mortgage holidays on 16:00 - Jan 28 with 2199 views | Deano69 |
The other question/thought I had was whether the interest will accrue or compound?
If you still had a fair sized mortgage or loads of years left to pay I wondered if it would be quite expensive in the long run? |  |
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| Mortgage holidays on 16:48 - Jan 28 with 2127 views | J2BLUE |
I applied for one with Barclays. They were so slow to process it that the three months was up by the time they came back to me so I kept paying the normal amount. They finally sent me a letter apologising and saying they noticed I had kept paying the normal amount and they'd make sure my balance was correct. No offer of restarting it or anything. To be fair I haven't needed it. I applied for it as a bit of an insurance policy so now things look to slowly be getting towards the end of this i'm pleased I kept paying. |  |
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| Mortgage holidays on 17:55 - Jan 29 with 1940 views | Horseboy |
| Mortgage holidays on 16:00 - Jan 28 by Deano69 |
The other question/thought I had was whether the interest will accrue or compound?
If you still had a fair sized mortgage or loads of years left to pay I wondered if it would be quite expensive in the long run? |
This is the case in my T and Cs | | | |
| Mortgage holidays on 15:16 - Feb 28 with 1612 views | JammyDodgerrr |
Old thread, but does anyone know how if you are new to a mortgage, how badly it may affect your score? We took a mortgage out in October, wife now unemployed as of Jan - we can afford the monthly payments via my wage, but just wondering if it is worth taking the break while we can. We are with Accord ,just looking for others views and how they have found it. |  |
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| Mortgage holidays on 15:46 - Feb 28 with 1511 views | jas0999 |
Advice I received from the bank is to continue paying your mortgage if you can. Interest just gets added on at the end of your term and will likely push your monthly payment up albeit not significantly (depending upon length of time left). | | | |
| Mortgage holidays on 15:55 - Feb 28 with 1477 views | itfcjoe |
| Mortgage holidays on 15:16 - Feb 28 by JammyDodgerrr |
Old thread, but does anyone know how if you are new to a mortgage, how badly it may affect your score? We took a mortgage out in October, wife now unemployed as of Jan - we can afford the monthly payments via my wage, but just wondering if it is worth taking the break while we can. We are with Accord ,just looking for others views and how they have found it. |
Our mortgage went up a bit at the end of the holiday, but nothing much really - probably £50 or so a month but we were able to build our savings over the 3-6 months we had off.
If I were you, whilst banks are doing them effectively no questions asked, I'd take the break in your situation. It will allow you and wife to have a bit of breathing space rather than scraping by. | |
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| Mortgage holidays on 17:44 - Feb 28 with 1325 views | Muncher |
| Mortgage holidays on 15:55 - Feb 28 by itfcjoe |
Our mortgage went up a bit at the end of the holiday, but nothing much really - probably £50 or so a month but we were able to build our savings over the 3-6 months we had off.
If I were you, whilst banks are doing them effectively no questions asked, I'd take the break in your situation. It will allow you and wife to have a bit of breathing space rather than scraping by. |
Be aware that while it might not impact your credit score (I don’t know that it doesn’t) it is certainly noted by lenders and may impact on your ability to borrow in the future. It is not “zero impact” as some may think. | | | |
| Mortgage holidays on 14:36 - Mar 5 with 1055 views | JammyDodgerrr |
| Mortgage holidays on 15:55 - Feb 28 by itfcjoe |
Our mortgage went up a bit at the end of the holiday, but nothing much really - probably £50 or so a month but we were able to build our savings over the 3-6 months we had off.
If I were you, whilst banks are doing them effectively no questions asked, I'd take the break in your situation. It will allow you and wife to have a bit of breathing space rather than scraping by. |
We ended up doing it, submitted online, took literally three minutes i think. Did that Tuesday night, got a letter through the door today telling us it's approved and when our payments resume they will go up £7 a month. Stunned it was this easy. | |
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