Interest only mortages

stickywicket

my son in law is only paying the interest on his mortgage. He has a wife and 2 small children. He is about to be off work for posibly a few months as he has a bad hernia and he is waiting for an operation. He is a self employed builder and the building trade is not good anyway at present so his income is reduced. He think that as he is self- employed he is not entitled to most benefits. Is he entitled to a mortgage holiday and if so for how long? Is there anything that he could use to engourage his mortgage company to look at his situation favourable.? Also does anyone know of benefits for self employed in this situation? Hoping to hear from someone. Thanks

_Andy_

Depends on the lender - he needs to contact them to see what they can do.

Squish_21

As above, need to check with lender to find out if they will grant the\payment holiday. Its done on a case by case basis.

Ian_Griffiths_Halifax

Depending on the lender and how long he's had the mortgage with them without missing payments, some may give him a payment holiday. As for the benefits, I haven't a clue, but there are benefits forums on here where I'm sure you'd be able to get some help.

thriftyminx13

Ditto. depends on the lender. i know some banks when the situation is explained may allow for this but given the current situation flexibility may be more or less.

did he take out any kind of insurance with his mortgage to allow for a break to cover for sickness etc? with regards to benefits maybe he should contact his local citizens advice bureau.

feisty1

In addition to what has been posted above.........Homeowner Mortgage Support Scheme the HMSS will allow people facing difficuties/repossession to defer a portion of their mortgage interest for up to two years. It will be aimed at those who become unemployed or experience a "big cut in income". It is scheduled to launch in January...........With experts predicting house prices will fall by another 15% over the next year, the cost of a payment holiday could push some homeowners dangerously close to negative equity,(those with less than 25% equity in their property) which will make it very difficult for them to remortgage.” Even more so with an interest only with interest being added to interest.........

Ian_Griffiths_Halifax

feisty1 wrote: »

In addition to what has been posted above.........Homeowner Mortgage Support Scheme:The HMSS will allow people facing difficuties/repossession to defer a portion of their mortgage interest for up to two years. It will be aimed at those who become unemployed or experience a "big cut in income". It is scheduled to launch in January...........With experts predicting house prices will fall by another 15% over the next year, the cost of a payment holiday could push some homeowners dangerously close to negative equity,(those with less than 25% equity in their property) which will make it very difficult for them to remortgage.” Even more so with an interest only with interest being added to interest.........

Totally agree with all that, but sometimes needs must.

feisty1

i agree, i included about the roll up just in case people thot interest was simply frozen........however it's possibly a better option than the alternative