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payment holidays
mikechaos
Posts: 25 Forumite
Hello everyone,
Following on from the Chancellor's announcement that the furlough scheme will continue until October, do you think that the banks will also extend payment holidays on mortgages, loans and credit cards for a further 3 months?
Following on from the Chancellor's announcement that the furlough scheme will continue until October, do you think that the banks will also extend payment holidays on mortgages, loans and credit cards for a further 3 months?
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Comments
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That is the very first Q that came to my mind also. I guess we will find out in due course. An extension has its pro's and con's dont it....In the same way they dont want people to be made jobless...the same way they prob dont want us to all default on mortgages and other credits. But not sure how long all the lenders will be willing to wait...365 Day 1p challenge - £371.49 / 667.95
Emergency Fund £1000 / £1000 ( will enlarge once debts are cleared)
DFW - £TBC1 -
Yes I agree with you. I suppose that if people become insolvent then the lenders will get a fraction of what they are owed, if anything.bamgbost said:That is the very first Q that came to my mind also. I guess we will find out in due course. An extension has its pro's and con's dont it....In the same way they dont want people to be made jobless...the same way they prob dont want us to all default on mortgages and other credits. But not sure how long all the lenders will be willing to wait...
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Also I know a lot of people that have taken mortgage holidays but are still working and recieving the same money wise. Maybe if they extend it they should do it only for people who have been furloughed/lost jobs etc0
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The situation is quite fluid, and I expect the FCA will update their advice as necessary.
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Tbh I wouldn't take a mortgage holiday unless I had to - they won't freeze the interest & will no doubt increase future payments to ensure the loan is paid off within its term2
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A six month mortgage holiday has to be repaid with the outstanding interest. Also would not look favourable in any future mortgage deals.0
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My understanding was that any agreed payment holidays shouldn't have affect how the customer is viewed by future lenders?comeandgo said:A six month mortgage holiday has to be repaid with the outstanding interest. Also would not look favourable in any future mortgage deals.1 -
It's incredibly unlikely that it won't. After all, it's a key indicator of risk.0
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While the holiday may not go on your credit report and may not affect your "score", the lenders would, I'm sure, look on those taking payment holidays as being of a higher risk. I really do hope once we're out of this people live more within their means and put money aside for emergencies. While nobody could have foreseen this, having a couple of months worth savings would have helped most people through the initial issue.2
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