Bank won’t tell me new payment amount after Coronavirus mortgage holiday

stevenlea198611

Hello people,

I have requested a mortgage holiday from my bank which has been approved. I received a letter of confirmation but this did not state how much my payments would go up.

I decided to call them to try and confirm this. They told me they can’t tell me how much my payment would go up as they haven’t decided how this will be calculated.

I have input all the info myself on the online calculators which indicates my payment will increase around £4 per month.

Can anybody help with this?

Regards,
Steven 

stevenlea198611

Anybody got advice? 

Andy_L

Did they say why they haven't decided?
Is it because they dont know if you're going to pay the mortgage back over the same time frame or extend it by the length of the mortgage holiday?

Thrugelmir

Provide some details of your mortgage and someone will be able to confirm your estimate. 

daveyjp

Doesn't the mortage provider offer their own calculator prior to you agreeing to the payment holiday?

That's how it was with Santander at least 15 years ago when I borrowed against a mortgage.  It gave you figures for extending the period or keeping the term the same.

Percy1983

Mine said they will contact with options at the end of the payment holiday, these options will be.
1, make a payment to catch up.
2, Increase payments to catch up.
3, increase the term of my mortgage to keep payments the same/similar.
So will await the figures on each option and see what works.

nyermen

Chances may be simply that the banks systems aren't equipped to do it automatically.  If it's a big bank, it may well be an old (AS/400 even) core banking system.  They may have put the suspensions in as a correction, and either have to kick the system to calculate new amounts, or as Percy says, will need to offer options and then update the corrections for the remaining term.

PixelPound

Percy1983 said:

Mine said they will contact with options at the end of the payment holiday, these options will be.
1, make a payment to catch up.
2, Increase payments to catch up.
3, increase the term of my mortgage to keep payments the same/similar.
So will await the figures on each option and see what works.

This is probably the same with most mainstream lenders. The OP does not say who their mortgage is with, but surely most will try and be as flexible as possible. Some people won't be able to afford to increase payments whilst others will want to minimise the financial cost.

Grumpy_chap

Because of the option set out by Percy, the actual cost of the mortgage payment break is virtually impossible to calculate in advance as it depend on decisions by the borrower that have not been made yet.

stevenlea198611

Thanks for all the advice guys. I just don’t want to be hit by massive payments at the end of the holiday even though I’m pretty sure I shouldn’t be as my mortgage interest rate is quite low 

stevenlea198611

Thrugelmir said:

Provide some details of your mortgage and someone will be able to confirm your estimate. 

My mortgage is £308 per month at 2.05% interest rate.

22 years left on the mortgage