HSBC Mortgage Holiday

NatS15

Has anyone applied for a HSBC mortgage holiday? The application form bothers me because it looks like you apply without seeing what the impact will be and you can't choose the length of holiday. Can you make the choice after you've submitted the form or is that it, the holiday is in place and you've signed it blind?

[Deleted User]

I have not applied, but I know people who have. The initial term is three months, if granted, the bank can refuse or suggest a shorter term based on payment history. 
The impact from a payments point is currently unknown. The banks are working through things with the FCA and people will be contacted in due course, there will be a variety of options available. Term extension where age allows, increased payments over the remainder of the mortgage, catch up payments, or possibly something else. Until the options are confirmed with the FCA and then each bank decides which options it will offer then the impact will not be know. 

You can roughly estimate what your costs will be using a mortgage calculator and condensing the term, as a rough estimate on £100k over 25 years it would cost you an extra £8-10 pcm.