Government Mortgage Holiday COVID

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Posted 17th Mar
Anyone requested this from their lenders at all? Any info appreciated in these dark times.
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It’s standard you get take up to 3 mortgage breaks on most mortgages.. but you still get charged intrest. You have to be up to date with no missed payments. Just ring your provider if you can prove you need one through the virus it won’t affect your credit score..
How are you meant to prove your going to be struggling ? You can’t go to your GP ? The french had the right idea and just suspended for everyone
i believe it is only for those that are struggling because of covid 19 so you would need to show the bank that you fall into this category. it is not a default option for everyone.
mutley117/03/2020 20:08

i believe it is only for those that are struggling because of covid 19 so …i believe it is only for those that are struggling because of covid 19 so you would need to show the bank that you fall into this category. it is not a default option for everyone.


But if you look in most mortgage t&c they all let you take payment holidays.. this is nothing new the only difference is this time it won’t affect your credit file, if through the virus...
Bargainhead17/03/2020 20:38

But if you look in most mortgage t&c they all let you take payment …But if you look in most mortgage t&c they all let you take payment holidays.. this is nothing new the only difference is this time it won’t affect your credit file, if through the virus...


i only heard it on the news like everyone else. i am thinking they may also not charge interest during the payment holiday?

update - as stated in my later post. the interest during the holiday period is still due, just delayed payment.
Edited by: "mutley1" 17th Mar
I currently have until July before my deal ends with natwest and got a remortgage in place for then with another company.
What happens if i have a payment holiday?
kickinkez17/03/2020 21:55

I currently have until July before my deal ends with natwest and got a …I currently have until July before my deal ends with natwest and got a remortgage in place for then with another company.What happens if i have a payment holiday?


very little as the bigger loan would go to the new mortgage company since you have skipped 3 months of payment from your exisiting mortage if it is a repayment mortgage.

i don't know if the new payment holiday with covid 19 means the bank won't charge interest for 3 months as well, if that is the case then interest only mortgages would not get any bigger because you haven't paid 3 months of interest during the break.

update - just found this so the interest is still due, but just delayed

"The holidays will not constitute free money. The banks said they remain obliged under Financial Conduct Authority rules to ensure that any “forbearance” will still assume an eventual full repayment of arrears.

While a person is taking a payment holiday, the interest that would have been paid will still rack up, and the capital sum of the loan remains."


theguardian.com/mon…ays
Edited by: "mutley1" 17th Mar
Just thinking how would the terms be effected as it will obviously add a further 3 months to customers current duration on fixed rate mortgages?
flameboi17/03/2020 22:45

Just thinking how would the terms be effected as it will obviously add a …Just thinking how would the terms be effected as it will obviously add a further 3 months to customers current duration on fixed rate mortgages?


My guess is it will actually add a bit more on because interest is still being accrued. However, it will add to the end of your term so outside of the fixed rate (i.e. 5 year fixed rate but 20 year mortgage, if you take 3 month holiday those three months get added to the end at the standard rate rather than extended your fixed rate period).
flameboi17/03/2020 22:45

Just thinking how would the terms be effected as it will obviously add a …Just thinking how would the terms be effected as it will obviously add a further 3 months to customers current duration on fixed rate mortgages?


I have never had experience of mortgage holidays, but I am guessing the money owed will be slowly spread over the remaining lifetime of the mortgage, so you will see a small monthly increase when the holiday is over, unless you area near the end of the mortgage, then I guess the length could be increased by the extra months.
Op is asking advice and people are guessing pmsl, like I said in first and 2nd post, this is nothing new and has always been available, it adds time on to your mortgage. If you don’t have early repayment fees you can offset it buy paying extra.

this is really bad if your just after getting out of paying for a few month as it just creates more debt for yourself. Like I said this is nothing new and most mortgages have this in them if people read the small print. If you take it now and don’t need it later if you lose your job you won’t be able to use it.
mutley117/03/2020 23:30

I have never had experience of mortgage holidays, but I am guessing the …I have never had experience of mortgage holidays, but I am guessing the money owed will be slowly spread over the remaining lifetime of the mortgage, so you will see a small monthly increase when the holiday is over, unless you area near the end of the mortgage, then I guess the length could be increased by the extra months.


It doesn’t, you shouldn’t guess your not very good at it, maybe you should look up the ins and outs of things before guessing and maybe giving op wrong info.
mutley117/03/2020 21:22

i only heard it on the news like everyone else. i am thinking they may …i only heard it on the news like everyone else. i am thinking they may also not charge interest during the payment holiday?update - as stated in my later post. the interest during the holiday period is still due, just delayed payment.


Point I was making op asked advice not thoughts.. I’m lucky I don’t need to take one, but I read contracts so I know this is nothing new for most people.,,
Edited by: "Bargainhead" 18th Mar
Bargainhead18/03/2020 05:20

It doesn’t, you shouldn’t guess your not very good at it, maybe you should …It doesn’t, you shouldn’t guess your not very good at it, maybe you should look up the ins and outs of things before guessing and maybe giving op wrong info. Point I was making op asked advice not thoughts.. I’m lucky I don’t need to take one, but I read contracts so I know this is nothing new for most people.,,


Thanks guys, all input appreciated for this murky times of solid info.
The take away here is only take a mortgage holiday if you need to, not because you want to.

It will cost you more in interest long term and reduce the availability in the future should you really and essentially need one.

The nature of the beast is people will see this available and splurge out the saved money on tat. There is more to come and we don’t know when this will end. Businesses are going to close or take drastic staffing measures. A new phone now or big TV won’t help if true needs pass your door.
Bargainhead18/03/2020 05:20

It doesn’t, you shouldn’t guess your not very good at it, maybe you should …It doesn’t, you shouldn’t guess your not very good at it, maybe you should look up the ins and outs of things before guessing and maybe giving op wrong info. Point I was making op asked advice not thoughts.. I’m lucky I don’t need to take one, but I read contracts so I know this is nothing new for most people.,,


perhaps you should also look at your own comments where you are stating facts which are wrong.
i have looked this up and you are incorrect about most mortgage contracts allowing a holiday, only some do and the majority does not according to this article. also the subsequent mortage payments will increase after the holiday from the missing payments as i had said. what i have guessed is actually correct.

"When the payment holiday comes to an end, your outstanding mortgage balance and mortgage payments will be higher than they were before the holiday."

moneyadviceservice.org.uk/en/…ays
All info appreciated guys, from what I have read individual lenders will have a criteria by Friday on which customers will be eligible, thanks all
flameboi18/03/2020 14:39

All info appreciated guys, from what I have read individual lenders will …All info appreciated guys, from what I have read individual lenders will have a criteria by Friday on which customers will be eligible, thanks all


are you affected by covid 19 and actually need this payment holiday?

i believe that most mortgage lenders may not have the payment holiday as a norm in their contracts but you can always speak to them if you run into financial problems as it is better for them to agree a payment plan with you than to repossess the property so i am sure that most banks will bend over backwards to help if you do fall into financial trouble and can't afford to make payments.

repossion is an expensive task for the bank and they would need a court order to do so. they would therefore only repossess a property if there was no outlook of the customer being able to repay the loan in future.
40131682-jhe5c.jpg
To many, mortgage holiday help is rather like the above.

Seriously, don't take the kind offer unless you have to.
mutley118/03/2020 13:44

perhaps you should also look at your own comments where you are stating …perhaps you should also look at your own comments where you are stating facts which are wrong. i have looked this up and you are incorrect about most mortgage contracts allowing a holiday, only some do and the majority does not according to this article. also the subsequent mortage payments will increase after the holiday from the missing payments as i had said. what i have guessed is actually correct."When the payment holiday comes to an end, your outstanding mortgage balance and mortgage payments will be higher than they were before the holiday."https://www.moneyadviceservice.org.uk/en/articles/mortgage-payment-holidays


They add time on to your mortgage, and most mortgage do allow payment holidays if you meet criteria. You spend all day looking the internet and find an article to find your opinion.
The issue is that a payment holiday will show on your credit history for 6 years and you will have to pay interest and the missing payments before the end of your term which will either raise the monthly cost or extend the length of the mortgage.

If you aren't getting paid to be off work you are on a lose-lose situation.
If you are trying to call "Santander" about a 3 month mortgage break and have spent hours on the phone listening to a recorded message! This will help just found it on there website today....santander.co.uk/per…rus only takes minutes to submit and hopefully they will reply by post. Stay safe everyone....
mutley118/03/2020 14:52

are you affected by covid 19 and actually need this payment holiday? i …are you affected by covid 19 and actually need this payment holiday? i believe that most mortgage lenders may not have the payment holiday as a norm in their contracts but you can always speak to them if you run into financial problems as it is better for them to agree a payment plan with you than to repossess the property so i am sure that most banks will bend over backwards to help if you do fall into financial trouble and can't afford to make payments.repossion is an expensive task for the bank and they would need a court order to do so. they would therefore only repossess a property if there was no outlook of the customer being able to repay the loan in future.


I work in the realms of financial advice for a living and this is just something else that is unfortunately bringing out the worst in some people . The mechanics of the repayment holidays will obviously vary from lender to lender and these are invariably being put in place to support people in very difficult financial circumstances ie those who have or are about to be put out of work. I am however coming across too many instances of people wanting something for nothing. I’ll leave it there.
Edited by: "joeydeacon" 21st Mar
joeydeacon21/03/2020 18:48

I work in the realms of financial advice for a living and this is just …I work in the realms of financial advice for a living and this is just something else that is unfortunately bringing out the worst in some people . The mechanics of the repayment holidays will obviously vary from lender to lender and these are invariably being put in place to support people in very difficult financial circumstances ie those who have or are about to be put out of work. I am however coming across too many instances of people wanting something for nothing. I’ll leave it there.


this doesn't surprise me at all. however the holiday doesn't really benefit anyone as the interest is still accruing during the holiday so taking a payment holiday when you don't need it doesn't really help you at all. people who are looking to take advantage of this and who do not need it may be thinking it is free money when it is not.
mutley121/03/2020 18:52

this doesn't surprise me at all. however the holiday doesn't really …this doesn't surprise me at all. however the holiday doesn't really benefit anyone as the interest is still accruing during the holiday so taking a payment holiday when you don't need it doesn't really help you at all. people who are looking to take advantage of this and who do not need it may be thinking it is free money when it is not.


Exactly why I haven't done it. I can get by for about 2 months, hopefully this government business grant works out for my boss so I can get paid without worry. but for now I am still working because I simply cannot afford not to.
dbizal21/03/2020 19:25

Exactly why I haven't done it. I can get by for about 2 months, hopefully …Exactly why I haven't done it. I can get by for about 2 months, hopefully this government business grant works out for my boss so I can get paid without worry. but for now I am still working because I simply cannot afford not to.


it is comforting to know that the government is prepared to do what it takes to help those affected so that we don't all end up in a mess. so at least you know you have this option if you lose your job or become sick. not every country will be doing this, especially the poorer countries.
mutley121/03/2020 19:35

it is comforting to know that the government is prepared to do what it …it is comforting to know that the government is prepared to do what it takes to help those affected so that we don't all end up in a mess. so at least you know you have this option if you lose your job or become sick. not every country will be doing this, especially the poorer countries.


Completely agree. People just like to take advantage when they don't even need to.

I dread to think of all the scams that will happen when/if they sort out an option for the self employed...
dbizal21/03/2020 19:37

Completely agree. People just like to take advantage when they don't even …Completely agree. People just like to take advantage when they don't even need to. I dread to think of all the scams that will happen when/if they sort out an option for the self employed...


they already have fiscal measures to support the self employed now.

theguardian.com/bus…its
mutley121/03/2020 19:41

they already have fiscal measures to support the self employed …they already have fiscal measures to support the self employed now.https://www.theguardian.com/business/2020/mar/20/self-employed-coronavirus-crisis-sick-pay-redundancy-benefits


Ah right, I haven't seen any of today's updates.
dbizal21/03/2020 19:42

Ah right, I haven't seen any of today's updates.


it makes you feel grateful you live in a country where the government has enough borrowing power to help and are willing to take on huge debt to do so and you are not left in a state where the wealthy can look after themselves and everyone else will just have to deal with it the best way they know how.
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