We are living in unprecedented times and the coronavirus pandemic is having a massive impact on the way we live our lives.
The current situation could have a massive financial impact for many families and the government has been putting in measures to try to help the British public as much as it can.
One of these measures that was announced on 17th March was a Mortgage Payment Holiday.
Is a mortgage payment holiday the right option for me?
It’s important to remember that a mortgage holiday is a temporary break from your mortgage payments.
You will still be charged interest – but it’s added to the total cost.
There are a few things to consider before applying for a mortgage payment holiday, to make sure it’s right for your situation.
The following alternatives may be available:
- If you have an overpayment reserve, you could underpay instead?
- Can you switch to a cheaper mortgage deal ?
- Can you change the term of your mortgage?
- Could you make reduced payments?
WARNING – If you are struggling, DO NOT just stop payments without speaking to your lender as this will breach your contract and will put you into arrears.
If you would like to apply for a change in payments, you need to contact your lender directly to discuss your options. There are huge backlogs, so you may be best to do this online.
How we can help.
We are fully committed to providing our clients with all the help we can in these difficult times. We are here to help if you would like to talk through your options before you contact your lender.
Our team has a wealth of experience and we are only a phone call away.
We are also happy to extend the same offer of advice and guidance to anyone that needs clarification on their options.
This is at no cost or obligation – we just want to help.
Most importantly please head the government health guidance and keep safe.
We wish you all good health in these challenging times.