Remortgage or payment holiday

Brewster94

Hi, My girlfriend has a serious illness and is likely to be off work the rest of this year. She is moving on to half pay soon so is trying to save money by moving to a different mortgage rate (she is currently on the variable rate so not tied in)
Will her illness and move to half pay effect the ease of her moving to a new mortgage product, even with the same lender? Will they just re-assess her income/outgoings like a normal mortgage application?
On top of this - would she be better to simply take a 3 month mortgage payment holiday due to COVID? Would this affect her getting a remortgage in the future?
As she is on the variable rate and not tied in I think she should move to a new rate as soon as possible, but unsure how this would work with her illness/salary drop.
Any advice welcome. Thanks!

Thrugelmir

Go online and see what options are available from the lender. Do not speak to them directly unless there's no choice. Would be better to continue to pay the mortgage if at all possible. 

dunstonh

Will her illness and move to half pay effect the ease of her moving to a new mortgage product, even with the same lender?

It wont impact on a product transfer but it would on a remortgage.

On top of this - would she be better to simply take a 3 month mortgage payment holiday due to COVID? Would this affect her getting a remortgage in the future?

Authorised arrears are taken into account on mortgage applications.   So, it could prevent a future mortgage application from succeeding (at least for a period).

As she is on the variable rate and not tied in I think she should move to a new rate as soon as possible, but unsure how this would work with her illness/salary drop.

Interest rates are not going up any time soon.   So, there is no rush if the variable rate is attractive.

Brewster94

dunstonh said:

  So, there is no rush if the variable rate is attractive.

The variable rate is over 4%!!!
I thought she wouldve been able to get much less than that

RelievedSheff

What product switches can her current provider offer?

Thrugelmir

Brewster94 said:

dunstonh said:

  So, there is no rush if the variable rate is attractive.

The variable rate is over 4%!!!
I thought she wouldve been able to get much less than that

Much lower. 

Brewster94

RelievedSheff said:

What product switches can her current provider offer?

Yeah this is what she needs to check. I would assume less than over 4% though!
Sorry if this is a stupid question, but when you take the mortgage holiday, I assume interest is still charged on your outstanding balance??
If so she would be better changing rate AND possibly taking the holiday too, although not sure if that would be allowed.
Ideally she could do the rate change online then apply for holiday at new rate, but whether she would get that done by 31st July im not sure?