To Mortgage Holiday or not, Help!

felixns

Hi Guys,
I recently went self-employed in January, have had some work but could do with taking a mortgage break.
I have not yet told my mortgage provider that I am self employed and am worried about what they will say as my income is varied at the moment, and worse off due to corona virus.
What should I do?
A, Tell the mortgage provider I am self employed & see if i can get a mortgage break?
B, Do nothing, and hope for the best?
Thanks.

lspell1

If you don't need to take a mortgage holiday, don't.
If you are going to start missing payments on things, mortgage or otherwise, than get in touch with your lender before this happens and request a holiday.
Why does your change in income concern you? Your income reducing would be one of the reasons the lender would permit a payment holiday. They wouldn't penalise you for it.

ACG

Your mortgage lender can not cancel your mortgage because your circumstances change. 
If you went self employed the day after you completed, they could potentially argue you knew your circumstances were going to change and you did not tell them, but I doubt you would be high on their radar in the current climate. 

If you can avoid the payment holiday it is the best thing to do as it will cost you more in interest in the long run, but if you need it then you need it. 

felixns

Hey Guys,
Thanks for the advice, I was generally worried that they might cancel my mortgage or something, I wasn't sure exactly how it works.
Yes obviously best to avoid it if you can. I have also just started a new two year term so not sure how it is affected by taking a break.
Do you know how long mortgage breaks can last?
Felix

Splatfoot

We're in a 5 year fixed term, a year in. We've taken a mortgage break, did it online and they asked did we want 1, 2 or 3 months. We went for 3 as my husband has no income till this is over. So, I think at the moment up to 3 months is standard. Mortgage breaks are usually a lot harder to get so this is all very different with different rules. 

lspell1

No they definitely can't penalise you or cancel your Mortgage, don't worry.
They are there to help, and will be understanding toward your circumstances.
Mortgage breaks will usually last up to 3 months.