Mortgage Holiday Eligibility

the_wendy_house

Hiya,

Now, I don't need to use this yet, but it's more of an eligibility question really. Our mortgage is with Nationwide (5yr fixed, more's the pity) and it has the option to take a 12 month payment holiday. I am pretty sure last time we remortgaged and asked about it they said we needed to have 20% equity to be eligible for this. At the time we were eligible, however will we still be now that house prices have dropped?

I'm not clear as to whether, if we did ask for a holiday, they would take the value of our property to be what it was when we last remortgaged a year ago, or will they assess it according to today's market? I hope to god we won't ever need to ask for it, but with times as they are and both our jobs at risk I'd rather know up front what the situation is.

Any advice would be greatly appreciated!

Thanks,

Wendy

beecher

I'm pretty sure they'd assess it according to today's market. Give them a call and find out for sure though. Remember it isn't really a holiday as you're paying interest on the interest. You're still building up arrears, just with their agreement.

All I can suggest is going to the Debt Free Wannabee threads and getting help on how to save money elsewhere in your household budget

Robert_Sterling_3

It would be prudent of the lender to use the current valuation.