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Mortgage holiday to clear debt?
tcurrie04
Posts: 1 Newbie
I am fortunate enough to be working and earning as usual at the moment, but have had approx £3000 on (interest free) credit for some time which I have struggled to pay off. I am considering applying for a 3 month mortgage holiday which would clear the bulk of this credit, and was wondering whether anyone had thoughts/ experiences related to this? I would be happy with my re-adjusted mortgage payment after 3 months, but would be a little concerned about the impact of future credit-worthiness. Thanks.
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Comments
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The scheme is only meant to be for people that have lost income, think one of the questions it ask you have you been effected by the virus. If you carry on switching the credit interest free you be cheaper paying it off that way still.1
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Mortgage lenders are already asking about authorised arrears and treat it as a negative if you have used it. So, it could potentially impact on future lending decisions in the near future. However, within a couple of years, they will stop asking and checking.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.1
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If the £3,000 is on interest free credit, does it make sense to add it to your interest charging mortgage?2
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I agree with gt94sss2 - and as you are working and earning as normal, you wouldn't be able to get a mortgage holiday, would you? The credit's interest free. If you haven't paid it at the end of the term, you can do as Martin advises, apply for more interest free credit.Please note - taken from the Forum Rules and amended for my own personal use (with thanks) : It is up to you to investigate, check, double-check and check yet again before you make any decisions or take any action based on any information you glean from any of my posts. Although I do carry out careful research before posting and never intend to mislead or supply out-of-date or incorrect information, please do not rely 100% on what you are reading. Verify everything in order to protect yourself as you are responsible for any action you consequently take.1
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