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To take a mortgage holiday

(16 Posts)
theoneiam1 Fri 12-Jun-20 18:39:14

When I don't need one?

So we can cover our mortgage payments, but if I took a 3 month holiday I could pay off a credit card and have some spare, and will only pay back an extra £10 a month.

Do they check your incoming wages when you apply for one?

Has anyone else taken one for a similar reason?

OP’s posts: |
AnathemaPulsifer Fri 12-Jun-20 18:41:34

That’s an extra £10 a month for the life of your mortgage. You’re probably better off not doing this.

Singlebutmarried Fri 12-Jun-20 18:42:00

Do your research, it could affect you further down the line.

User7764217 Fri 12-Jun-20 18:42:56

It won’t show on your credit file but the concern is that lenders may look negatively on this when considering you for a future mortgage in any event.

KellyHall Fri 12-Jun-20 18:43:31

My dh asked me if we could do a mortgage holiday to pay off a debt I didn't know he had, justifying it in almost the same way as you have. I said no.

You never know what's around the corner and whether you may actually need a mortgage holiday so I would only ever use one if I absolutely had to.

That said, I doubt you'd be the only one doing it that didn't need to. It's really up to you.

Holeywalls Fri 12-Jun-20 18:46:43

No definitely not. If you go for a new mortgage in the future or want to remortgage they may well ask you if you’ve ever taken a mortgage holiday and it would reflect badly.

Stuckforthefourthtime Fri 12-Jun-20 18:51:16

You'll have to pay off more later BUT if you have credit card debt that will be far more expensive and so long as you guarantee to use the money for that and to save (if you don't have a few months of earnings saved in the bank) I'd do it.
Don't use it 'to have some spare'. It will end up disappearing in daily spend and you'll be £10 a week down for a long time.

Dutchesss Fri 12-Jun-20 18:52:28

I don't know if the holiday would effect you in the future, but paying off a credit card that's attracting high interest could save a lot of money.

tttigress Fri 12-Jun-20 18:52:56

Well if you are paying if debt at 25% Apr or something might be worth it.

But you need to work it out for yourself

cyclingmad Fri 12-Jun-20 19:29:51

I remortgaged, staying with the same lender and i've taken pyment holiday before and they didn't even ask

Giganticshark Fri 12-Jun-20 19:36:21

Yes we're using the 2k to pay off a debt. It increased our repayments by a tenner. We're fine with this as it puts us in a better place now and for the next few years. It's nice to clear a debt

estatenonestate Fri 12-Jun-20 20:25:44

To those saying it will reflect badly. We have taken the three month holiday. And this week got a mortgage agreed in principle for a larger mortgage. They know about the holiday and they said it wasn't a problem

Beaniebeemer Fri 12-Jun-20 21:08:45

Mortgage holiday in normal circumstances is not viewed in a good light.

But a COVID mortgage holiday is different due to exceptional circumstances and the government had pretty much told the banks that they had to help.

theoneiam1 Fri 12-Jun-20 22:40:25

Thanks everyone for your replies.
I works out wed pay back an extra £400 over the term, but I think it's worth it to clear the debt.
We won't manage to clear it otherwise so feels like a good opportunity.
I'm going to apply, so fingers crossed!

OP’s posts: |
letmethinkaboutitfornow Fri 12-Jun-20 23:25:55

Whichever has the highest interest rate / cost.
Mortgage holiday is just that, not a discount. For as long as you understand the consequences, go for it

CrystalMaisie Fri 12-Jun-20 23:41:08

Look at what Martin Lewis says about it:

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