Mortgage holiday

[Bubblesbubblesmybubbles]

I've read the Martin Lewis report on this. It seems as if, as long as you're up to date on payments there is no risk in doing so? I know the interest is going to be added on later but we may well be moving to a cheaper area withing 4/5 years anyway.

Have I missed something? We can JUST cope still paying but it would be much easier to have the 3 months off as we can more easily cope later

[littlefawn]

I applied through Halifax and it was very simple online, all went through very quickly. We are fine at the moment but my husband is self employed and I'm worried his business will be affected. He manages properties and a lot of tenants (students mostly) have moved back to their family homes cutting their contracts short. We are ok for now so I'm putting the money aside and if we get through with no issues I'm going to just pay the money off a couple of loans I have

[littlefawn]

Also I'm fairly sure it doesn't affect your credit rating

[ChoppingBlock]

In some cases, it will affect your credit rating. Check with your provider beforehand.

[delilahbucket]

The interest isn't added on later, it is still calculated daily, so it will cost you more in the long run as you'll pay more interest. Switching to a cheaper deal won't negate this as the interest will already have accrued.
There is no other detriment.

[Lemonsaretheonlyfruit]

I heard Martin Lewis being interviewed about this. There is no risk as long as you do it properly with the provider. I think the odd person has just cancelled their direct debit which does cause problems in terms of credit rating. I am going to do it too. It adds very little the other side.

[ALovelyBitOfSquirrel]

We did it just in case we needed to as it makes very little difference to payments. It went through very quickly and smoothly.

[Kingcole]

Yes we have just to keep this money as a buffer. Have done it before too. We overpay when we can at other times.

[Bubblesbubblesmybubbles]

Thank you! Ive read the bank website through a few times and I can't see any mention of credit rating being affected, I might contact them to double check though as I'm not keen to be caught out

[pocketem]

Remember banks don't use "credit scores". The fact that you have taken an (approved) payment holiday will be logged as part of your credit history. Whether lenders in future will see that as a bad thing or not will be up to them - currently they are saying not

[Bubblesbubblesmybubbles]

Ah thats interesting, but it could change?