Mortgage payment holiday - changing your mind

[eltax91]

Hi folks

When all this nonsense kicked off, it looked very much like I would be furloughed by my work, which at 80% would have left me with a fair sized pay cut.

I immediately went onto my mortgage providers website (hsbc) and applied for a payment holiday. I have not heard anything from them other than generic emails about how they are handling the crisis.

Since making the application, two of my older and mortgage free colleagues volunteered for furlough on the basis they didn’t feel those in our mid 30’s with commitments should have to struggle. Something for which I will forever be grateful for. So, the upshot is I no longer predict I’ll need the payment holiday, nor the added cost of it.

I’ve tried to get through on the phone several times but predictably their lines are jammed with what must be unprecedented volume.

My question is. Before they give the holiday, do they have to contact me or is the basic form ‘good enough’ to apply the holiday? I.e. do I need to keep hammering the phone or should I wait for them to contact me and then politely decline?

[Seti]

The basic form is likely to be sufficient so I would expect the holiday to start at whatever date you requested.

It should be reversible but you will need to talk to them.

[No_Idea]

When I applied online (Nationwide) they just sent a letter confirming it was set up. Didn't have to accept the offer or decline. Letter didn't even state what the added payments will be after the 3 months!

[mattuk89]

I phoned hsbc and got through after about 20 mins, then had to answer a few questions, then someone phoned me back and I had to accept the payment holiday over the phone, so I would just try to keep ringing them, you will get through eventually, I think even with the online form someone will phone you to confirm, but not 100% sure, so phone, leave phone on loud speaker and go about your day, eventually someone will answer.

If it helps this is the number that phoned to back to arrange it, different from the number I phoned originally,not sure if it’s the one you have been trying.

‭0800 783 8422‬

[eltax91]

Thanks all. I’ll get patient on the phone and maybe try a less busy time. 3 attempts yesterday 20-40 minutes waits, two cut short by kids interrupting and 1 the call just cut.

Can anyone help with how to calculate the price I’ll ultimately pay for a 3 months payment holiday anyway? I suspect it’s rather high given I’ve 18 years left (took a 19 year term last February)

[mattuk89]

eltax91 said:

Thanks all. I’ll get patient on the phone and maybe try a less busy time. 3 attempts yesterday 20-40 minutes waits, two cut short by kids interrupting and 1 the call just cut.

Can anyone help with how to calculate the price I’ll ultimately pay for a 3 months payment holiday anyway? I suspect it’s rather high given I’ve 18 years left (took a 19 year term last February)

https://www.moneysupermarket.com/mortgages/search/payment-holiday

[p4cks]

eltax91 said:

Thanks all. I’ll get patient on the phone and maybe try a less busy time. 3 attempts yesterday 20-40 minutes waits, two cut short by kids interrupting and 1 the call just cut.

Can anyone help with how to calculate the price I’ll ultimately pay for a 3 months payment holiday anyway? I suspect it’s rather high given I’ve 18 years left (took a 19 year term last February)

In the unlikely event that they put it in place without an additional fact finding call, you can always just make your payments as normal meaning that you've effectively not had any payment holiday at all.

[Marcellus]

When we spoke to the Bank (First Direct)to set our "holiday" up we did ask what to do if we find we don't need it and they said "just make the payment" is the normal way if you don't need the holiday, so might HSBC be the same as First Direct (being FD are owned by HSBC)?

[blongs]

Hi, we did the mortgage payment holiday with HSBC. I filled in the form on the website and then after about a week they rang us back.

We had about 9 or 10 days before the next payment anyway. The lady on the phone went through this break, the reason for it (family loss of income) and a few other options of reducing the payment/extending period.

I had to verbally agree to it and on behalf of Mrs.

We just got a confirmation letter yesterday and before the July payment of the mortgage they will be in touch on how we want to make up the interest and the deferred payments.


I'd not expect them to go through with anything without speaking to you, they had to read out a lot of terms and cons etc.

If you have changed your mind you should just be able to stop the process.

Ben

[sparks_190e]

We've got over 30 years left on ours. We were told by Halifax the interest and payments are just spread over the remaining term. Ultimately our mortgage will be only a few quid more a month. Both of us are furloughed.

[Toaster Pilot]

Can’t you just make an overpayment to cancel it out? Preferably after the world returns to normal?

Halifax are approving holidays based on an online form only with no other contact (apart from a confirmation text) but knowing HSBC they’ll probably want you to attend a 3 day interview

[blongs]

You can make additional payments during the payment break. My HSBC letter says if a shorter holiday is possible please contact us to restart payments. Any ad-hoc or partial payments you make during this time will reduce the total amount of interest over the term of your mortgage.

It might be one of the options at the end of 3 month chat to make a larger payment to cancel it out. We shall see what they come up with.

[eltax91]

Thanks for all the info folks, especially those with HSBC. I will await the call back and see what the numbers look like.

Our mortgage started last February, we borrowed £465k @ 2.75% over 19 years. Our repayment is £2400 per month. i assume that 3 months interest, added to the loan and as such the extra interest i will pay on that over 18 remaining years (or the 4 remaining fixed at least) may amount to a decent sum which now i don't have a major loss of income, might not be worth continuing with.

[MOBB]

That's the thing you have to remember, people say its just a few quid a month extra but it's usually for a lot of months so it can add up to a fair amount.

I would just take the holiday if you have to and make the usual payments, in effect overpaying. I assume that would be ok with the lender?

[eltax91]

MOBB said:

That's the thing you have to remember, people say its just a few quid a month extra but it's usually for a lot of months so it can add up to a fair amount.

I would just take the holiday if you have to and make the usual payments, in effect overpaying. I assume that would be ok with the lender?

I’ll ask them when I speak to someone. I can make overpayments up to 10% each year anyway

[The Moose]

I work it out to be between £9,000 and £10,000 over the life of the loan...but then I could be wrong!

But that also doesn't take into account your rate changing after your fix?

Just make the payment.

[eltax91]

The Moose said:

I work it out to be between £9,000 and £10,000 over the life of the loan...but then I could be wrong!

But that also doesn't take into account your rate changing after your fix?

Just make the payment.

I got it to over 3k on a calculator site. 10 large. The payment is being made!!

[The Moose]

eltax91 said:

The Moose said:

I work it out to be between £9,000 and £10,000 over the life of the loan...but then I could be wrong!

But that also doesn't take into account your rate changing after your fix?

Just make the payment.

I got it to over 3k on a calculator site. 10 large. The payment is being made!!

Please don't rely on that! Make sure you/I are correct. I could be totally wrong!

ETA: I just looked at the link shown by someone else above and came out with this:


It looks like it's suggesting your payment would increase by £43 per month. 18 years is 216 months. £43 x 216 = £9,288. Have I screwed something up here

ETA2: I looked up another calculator and came up with this:

It's really confused me. It shows an increase in the payment amount of £45 per month - so broadly matches what the other one said. However it's showing the increase of the total amount repaid of only £2,222. I think that after holiday amount total repaid amount is incorrect...

Edited by The Moose on Thursday 9th April 18:38

[gnc]

be very careful, not having a mortgage myself, but having an inlaw who works for a main bank, they say it will affect your credit rating.

[waynecyclist]

gnc said:

be very careful, not having a mortgage myself, but having an inlaw who works for a main bank, they say it will affect your credit rating.

I am with Leeds building society and asked that question and was told no it will not affect my credit rating.