Follow us

  • How does mortgage holiday benefit you?

    Mortgage Holiday updated

     

    What is a mortgage holiday?
    A mortgage repayment holiday is simply a financial ‘break’ from your monthly repayment. This is available for customers who are unable to make their usual monthly mortgage payments.

    How will it impact my finances?
    Payment holidays may not be right for everyone. It’s important to remember your payment will not be waived but simply deferred.

    If you choose to take a payment holiday you will need to be aware that the amount you owe will increase as you’ll still be charged interest and the missed payments will be made up over the remainder of the mortgage term.

    Will my credit rating be affected?
    Taking a payment holiday will not impact your credit rating.

    How much notice to do I need to give my Bank?
    Each bank has its own timescale, it is typically between five to 10 working days from the time of your request.

    If you’re concerned about making your monthly mortgage repayments, get in touch with your bank as soon as possible.

    How do I apply?
    Most banks have online forms to help make it easier for customers if they know this is the best option for them, look at your mortgage provider’s website for all of the contact options.

    How long can I take a repayment holiday for?
    Covid-19 repayment holidays are currently in place for a maximum of three months.

    It’s important to remember your term will not be extended beyond this but if you’re still concerned about your monthly payments, then speak to your bank for help. They can assist and find the best option that is suitable for you.

    adminAiden

  • Mortgage Holiday process found very helpful

    Following the news from HM Treasury regarding the mortgage holiday extension, the Building Societies Association (BSA) has released data outlining perceptions around this form of support.

    Among those that have taken up a mortgage holiday, 90% found it to be fairly or very helpful, with only 8% saying it has been not very or not at all helpful.

    For landlords, however, the proportion that have found payment holidays to be not helpful rises to 21%.

    HM treasury mortgage holidays extended

    Mortgage payment holidays extended for a further three months
    The majority (68%) of these borrowers are fairly or very confident that they will be able to meet their mortgage payments once their payment holiday ends.

    However, 27% are not very or not at all confident that they will be able to pay.

    Landlords seem to be less certain than homeowners, with 34% stating that they are not very or not at all confident.

    The preferred repayment method for most is to repay over the remainder of their mortgage term, with 53% of homeowners and 32% of landlords favouring this approach.

    Among homeowners taking a mortgage holiday, 15% say that they would seek an extension to their payment holiday, compared to 18% of landlords.

    Commenting on the announcement regarding the mortgage holiday extension, Robin Fieth (pictured), chief executive of the BSA, said: “We welcome today’s announcements by the Economic Secretary to the Treasury and the FCA and the close collaboration between Treasury, lenders and regulators which has led to them.

    “Looking ahead we would encourage those borrowers who are able to pay to do so, as this will be to their own longer-term benefit.

    “However, borrowers can also be assured that there will be no cliff-edge moment as tailored support will be available for those who need it, whenever that may be.

    “Mortgage payment holidays will continue to be available until 31 October for those who have not had one.

    “We are pleased that there will be no automatic blanket extension to existing payment holidays as we do not believe extending payment holidays will be in the best interests of most borrowers, although individual extensions remain an option which may be right for some.

    “Possession is always a last resort for lenders and with the extension of the repossessions moratorium, homeowners should also be reassured that they are secure in their own homes.

    “Lenders will be contacting all borrowers with a repayment holiday before it comes to an end to lay out potential next steps and the support that is available.

    “Any borrower with concerns is encouraged to get in touch with their lender sooner rather than later.

    “Lenders will be working hard to provide support to all who need it as quickly as they can.”

    http://c.newsnow.co.uk/A/1032609375?-11043:573

    adminAiden

  • 13% of mortgagers have applied for a mortgage holiday

    All recessions are bad, but in different ways. Different industries and types of workers are affected – the financial crisis was a bad time for bankers and it’s lower earners who are bearing the greatest economic and health risks this time.

    But family finances are also about the money that goes out, not just what comes in. By far the biggest cost households face is housing, and here too we see this crisis playing out very differently.

    New Resolution Foundation research has found that private renters are 50% more likely than mortgagers to have fallen behind on housing costs in the crisis, with 13% in that situation. This is partly because 20% of private, and a quarter of social, renters have lost their job or been furloughed, compared with 14% of mortgagers. But it’s also because it’s easier to flex mortgage costs than rent.

    Around 13% of mortgagers have applied for a mortgage holiday. Almost all have been granted. In contrast, one in 10 private renters have tried to negotiate down their rent but just half have been successful.

    For some younger renters, the answer has been moving home, with two thirds of those moving recently returning to the parental nest. But that can’t be the answer for most, so if we don’t want what is already a jobs disaster turning into a renters’ catastrophe, then our social security system needs to step up to help rents get paid.

    •Torsten Bell is chief executive of the Resolution Foundation. Read more at resolutionfoundation.org

    adminAiden