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New mortgage after mortgage holiday?

donnacraig1984
donnacraig1984 Posts: 137 Forumite
Tenth Anniversary Combo Breaker
in Mortgages & endowments
Hi folks.
Has anyone managed to take out a new mortgage or remortgage after taking a mortgage holiday due to covid impact?

Thanks.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Did you take a mortgage payment holiday without actually requiring one? 
  • Cscott139
    Cscott139 Posts: 149 Forumite
    Third Anniversary 100 Posts
    You will be fine. Lenders should not be penalising you for taking the break. 
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Cscott139 said:
    You will be fine. Lenders should not be penalising you for taking the break. 
    Though there's most likely a reason behind taking the break. 
  • dunstonh
    dunstonh Posts: 121,309 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Cscott139 said:
    You will be fine. Lenders should not be penalising you for taking the break. 
    Lenders are allowed to "penalise" you for using authorised arrears on new applications for borrowing. And they are.
     
    It doesn't mean an outright refusal but lenders are treating it as a negative point.   So, if you were already pushing limits, it could turn it into a rejection.  However, if it all stacked up nicely with lots of positives, then it may not have an impact.

    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.
  • SeanG79
    SeanG79 Posts: 977 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Cscott139 said:
    You will be fine. Lenders should not be penalising you for taking the break. 
    I would expect at the minimum that you will need to have resumed making contractual payments before a lender will consider offering you a new finance agreement. 

    Also, as mentioned above - one would expect there is an underlying reason as to why you needed the break. 
  • Cscott139
    Cscott139 Posts: 149 Forumite
    Third Anniversary 100 Posts
    I should have made myself a little clearer. The fact you took a payment holiday in itself shouldn't affect your ability to take a new mortgage, however, there are lots of other factors surrounding this that may affect you.
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