By Darren Amos, Independent Financial Adviser
Are you considering the coronavirus payment holiday on your mortgage? Remember that the interest will still be added to the mortgage, increasing the balance and that you will then be paying interest on the extra interest for the rest of the term of the mortgage.
Most lenders have confirmed they will allow the payment holiday, but all agree on the following:
- You must apply yourself, your mortgage adviser cannot do it for you, although they will try to help you
- It will be considered case by case
- You will need to complete forms of some kind
- If you are in arrears, they will not allow it
There remains uncertainty regarding scenarios where your current rate has expired. Some lenders will not allow a product transfer to be processed if you are on a mortgage holiday. Therefore, it is probably best practice to complete a product transfer first then apply for the payment holiday afterwards.
If your mortgage lender agrees to your payment holiday, then it should not affect your credit rating.
Be careful about what you decide!
How Anstee & Co can help you with your mortgage.
We are a firm of independent mortgage brokers. This means that the mortgage advice we offer is unbiased. We will look at all the financial options that are open to you. Why not arrange a phone call today? We can make use of most video conferencing formats including but not limited to-
We can also call you back on the phone!
If would like more information, then why not contact us?
AS A MORTGAGE IS SECURED AGAINST YOUR HOME, IT COULD BE REPOSSESSED IF YOU DO NOT KEEP UP THE MORTGAGE REPAYMENTS.