Mortgage approaching End of fixed term

Daynus

Hi all,

Our current Mortgage (Bank of Ireland) fixed term is going to end at the end of May, and our new lender (Halifax) informed us that they "we cannot guarantee any requested completion dates".

I'm concerned that we don't have long enough left on our mortgage for a 3-month payment holiday, and we can't find any guidance online for our current circumstances, and wonder if anyone can provide some advice in this regard? 
Me and my wife are both working from home (government workers) and aren't struggling financially thankfully, so don't really need a payment holiday but we don't want our mortgage to run out without our next one lined up.

Jeremy535897

All you can do is talk to them (Bank of Ireland).

HornetSaver

Your fix running out wouldn't in and of itself prevent you from taking a mortgage payment holiday. It may have implications for being able to obtain another fix, and would result in you incurring the standard variable interest-rate on your balance for the time after your fix ends (currently, 4.24% - but, crucially, not having to pay it during that period, just having it added to your mortgage amount).

In your circumstances I'd strongly recommend trying to get a new fix ASAP lined up. While it is possible that lenders' interest rates could fall, equally (despite base rate cuts) they might not. If they do fall they really can't fall much further, and if they are going to rise the rates at the bottom will be pulled first. Furthermore lending criteria could get stricter the longer this drags on.

As for the mortgage payment holiday, in your circumstances I think it's a bad idea. Ignoring any altruistic or moral arguments (governments and banks have said whatever it takes so in principle you doing this shouldn't prevent someone else from doing it), mortgage holidays do have a slight impact on your credit file and also it's historically very, very hard to get a second one. Better saved for if you really need it.