Mortgage holiday when not needed.
Discussion
Im seeing a common theme from people who are taking mortgage holidays so they can do some home improvements and such.
I would also like to do this but im not in any struggle financially due to coronavirus and it asks me if i am.
Is it fraudulent to lie about that? We could do with a new kitchen and 3 months mortgage free would help towards funding it.
Also will these mortgage holidays be having an effect on anyones credit rating and so on? Everyone i know seems to be taking advantage when not even required.
I would also like to do this but im not in any struggle financially due to coronavirus and it asks me if i am.
Is it fraudulent to lie about that? We could do with a new kitchen and 3 months mortgage free would help towards funding it.
Also will these mortgage holidays be having an effect on anyones credit rating and so on? Everyone i know seems to be taking advantage when not even required.
I took a holiday for 3 months due my misses earning zero money due to just going self employed ect.
More of a safety net than i have to. All I’m doing is saving my 800 pounds mortage payment and I’ll ballon pay once she’s back to normal and hopefully haven’t had to need it.
Just gives me peace of mind and doesn’t give me extra worry while I’m flat out at work each day.
I had the same concerns and asked directly if it’s deemed fraudulent but there wasn’t a issue.
More of a safety net than i have to. All I’m doing is saving my 800 pounds mortage payment and I’ll ballon pay once she’s back to normal and hopefully haven’t had to need it.
Just gives me peace of mind and doesn’t give me extra worry while I’m flat out at work each day.
I had the same concerns and asked directly if it’s deemed fraudulent but there wasn’t a issue.
Petrolsmasher said:
Im seeing a common theme from people who are taking mortgage holidays so they can do some home improvements and such.
I would also like to do this but im not in any struggle financially due to coronavirus and it asks me if i am.
Is it fraudulent to lie about that? We could do with a new kitchen and 3 months mortgage free would help towards funding it.
Also will these mortgage holidays be having an effect on anyones credit rating and so on? Everyone i know seems to be taking advantage when not even required.
You pay more back in the long run, so think carefully before you do anything. I would also like to do this but im not in any struggle financially due to coronavirus and it asks me if i am.
Is it fraudulent to lie about that? We could do with a new kitchen and 3 months mortgage free would help towards funding it.
Also will these mortgage holidays be having an effect on anyones credit rating and so on? Everyone i know seems to be taking advantage when not even required.
My 50 pence worth. I think these breaks may impact people's ability to get credit down the line. I know the government have said it won't affect credit ratings but lenders are looking to see if you're good for the money and having a dent in your repayment schedule says occasionally you aren't. I'd be weighing up if a new kitchen now would be better than being able to remortgage on the best offers later on.
Julia121 said:
My 50 pence worth. I think these breaks may impact people's ability to get credit down the line. I know the government have said it won't affect credit ratings but lenders are looking to see if you're good for the money and having a dent in your repayment schedule says occasionally you aren't. I'd be weighing up if a new kitchen now would be better than being able to remortgage on the best offers later on.
Why would they? If no payment is due you won’t get a non payment marker.Mortgage holidays have always been available, they’re just easier to obtain now. I’d be seeking every other option first though, it’s essentially ‘buy now, pay in x years’ but with interest accruing over that period.
If banks/government were really looking to help it’d be interest free!
If banks/government were really looking to help it’d be interest free!
sc0tt said:
Julia121 said:
My 50 pence worth. I think these breaks may impact people's ability to get credit down the line. I know the government have said it won't affect credit ratings but lenders are looking to see if you're good for the money and having a dent in your repayment schedule says occasionally you aren't. I'd be weighing up if a new kitchen now would be better than being able to remortgage on the best offers later on.
Why would they? If no payment is due you won’t get a non payment marker..
We decided to take one, we're still working although hours are currently reduced. We've decided to pay the equivalent payment into savings for when we need it in the future.
Unlike a lot of people we knew it wasn't free money and worked out exactly what i would cost us. Turned out to be £14 a month extra after the holiday
Unlike a lot of people we knew it wasn't free money and worked out exactly what i would cost us. Turned out to be £14 a month extra after the holiday
Nickyboy said:
We decided to take one, we're still working although hours are currently reduced. We've decided to pay the equivalent payment into savings for when we need it in the future.
Unlike a lot of people we knew it wasn't free money and worked out exactly what i would cost us. Turned out to be £14 a month extra after the holiday
Is that £14 extra every month until you pay off your mortgage? Unlike a lot of people we knew it wasn't free money and worked out exactly what i would cost us. Turned out to be £14 a month extra after the holiday
Banks have already said they will not report the payment holidays to credit firms so it won’t effect your credit score
I took one, I worked out how much extra it would cost, and then I’ve used the money to pay off my credit cards much quicker so I am now Debt free apart from my mortgage.
It has cost me about £400 more in interest across the life of the mortgage (although il be making over payments from now on) but that £400 is less than what I’ve spent over the years balance transferring my credit card debt
I took one, I worked out how much extra it would cost, and then I’ve used the money to pay off my credit cards much quicker so I am now Debt free apart from my mortgage.
It has cost me about £400 more in interest across the life of the mortgage (although il be making over payments from now on) but that £400 is less than what I’ve spent over the years balance transferring my credit card debt
Wish it had been that simple with my mortgage company, a small regional lender.
They have an application form where you have to justify why you need it. While we should be ok, my wife is on a zero hours contract, and her earnings are down by a 3rd compared to this point last year, so we will lose minimum £700-800 per month.
As my earnings have been unaffected, they would only reduce the payment by 50%.
Same lender also hasn't passed on the base rate changes yet, and will only reduce by 0.5% from the 1st of June.
They have an application form where you have to justify why you need it. While we should be ok, my wife is on a zero hours contract, and her earnings are down by a 3rd compared to this point last year, so we will lose minimum £700-800 per month.
As my earnings have been unaffected, they would only reduce the payment by 50%.
Same lender also hasn't passed on the base rate changes yet, and will only reduce by 0.5% from the 1st of June.
Natwest are currently declining all applications that include debt consolidation, where there is any evidence of payment holidays been taken in the last three months on any commitments, including the mortgage, in the last three months.
Whilst taking a mortgage holiday won't be reported negatively on your credit file, it is being used against clients when lenders are making decisions about you.
I would only take a mortgage holiday if you really, really need to.
Whilst taking a mortgage holiday won't be reported negatively on your credit file, it is being used against clients when lenders are making decisions about you.
I would only take a mortgage holiday if you really, really need to.
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