Mortgage Holiday, Furlough and Fixed Rate ending (Halifax)

scottishgirl87

Sorry if this has already been covered but just looking for some advice on taking a mortgage holiday. My husband has been furloughed whereas I’m currently working from home on full pay, however, the possibility of furlough has also been mentioned by my work. 

Our fixed term rate is due to end in September and our intention has always been to remortgage at that time, either with our current provider Halifax or elsewhere, as due to rate changes and our property going up in value (full renovation) we would be saving quite a bit on monthly payments.

Obviously none of us know what’s going to happen with interest rates but can anyone tell me if we take a 3 month mortgage holiday will it affect our ability to remortgage in September?

Browntoa

I suspect not , but your interest will roll up in that holiday

Thrugelmir

If you can afford to pay your mortgage. Why would you wish to take a holiday. There's no guarantee that come September that the rates on offer are going to be lower than you are currently paying. The current crisis is going to have a huge economic effect. 

bamgbost

HI OP. IN same boat, with same lender.

I asked them that Q. And the answer it shouldn't have a major impact on a remortgage. But obviously the amount outstanding will be higher than it would have been had you continued paying.

Thrugelmir said:

If you can afford to pay your mortgage. Why would you wish to take a holiday. There's no guarantee that come September that the rates on offer are going to be lower than you are currently paying. The current crisis is going to have a huge economic effect. 

One reason maybe, is to use the money in other areas you feel is a higher priority maybe? e.g. an emergency fund? Or clear other higher APR debts. e.g. Loans / Credit cards maybe. But ideally yes you shouldn't take it. But its down to you and your priorities.

amnblog

Technically it should not, no.
But bear in mind all you are doing is rolling up the payments for 3 months so your only benefit is cash-flow.

Thrugelmir

bamgbost said:

One reason maybe, is to use the money in other areas you feel is a higher priority maybe? e.g. an emergency fund? Or clear other higher APR debts. e.g. Loans / Credit cards maybe. But ideally yes you shouldn't take it. But its down to you and your priorities.

As night follow day. In the future at some point there'll be posts along the lines of I didn't realise what the impact would be of taking a mortgage holiday! 

scottishgirl87

Thanks all. We are simply considering our options at this point and haven’t decided whether a payment holiday is the best option.