Mortgage payment holiday and remortgage

[metallica121]

I am considering applying for a 3 month payment holiday and want to understand its impact please

Me and my partner are currently going through a divorce - but things are on hold due to covid. We've agreed everything and around 6 months later we will do equity transfer for a joint to a sole transfer of property.

This would mean sole affordability checks and remortgage. I wanted to understand from any mortgage experts if taking a payment holiday now will have an impact on remortgage (joint to sole) later ?

Thanks

Martin Lewis had something about this in his latest Moneysavingexpert newletter and unfortunately it looks like it does have a negative effect with some lenders. www.moneysavingexpert.com/news/2020/05/payment-holidays-may-hurt-mortgage-application-chances-via-the-b/

I wouldn't take a mortgage holiday now no, with you wanting to remortgage again so quickly.

Most lenders are refusing to process any applicants who are on a payment holiday, and have to show evidence of at least one payment off the holiday.

Think like the lender, this person can not afford the mortgage as it stands, why would we re issue terms?

Thansk all.

Just to add more clarity, the situation is I take a payment holiday from Jun to Aug and then resume mortgage payments from Sept.

If I remortgage in November, will this payment holiday be an issue?

Thanks

It can be, yes. As ML explains, we won't know for a while if lenders are going to count this against you or not. It has been confirmed that they can, as while it won't affect your credit rating, they'll be able to see that the mortgage hasn't been paid for those months. Unless you desperately needed the mortgage holiday, I wouldn't take it in your current position.

Ultimately it will be, yes. You are are being given the payment holiday because you can't afford to make payments.

Understood.

Thanks everyone