Mortgage holiday or use over payments first?

jayp_IOD

Dear Forum, 
I am currently unemployed (even though eligible for furlough during garden leave, my spiteful former employer refused to furlough me). I have been funding my unemployment since May with savings that are dwindling fast. I had previously made overpayments to my Barclays mortgage. It amounts to roughly 1 1/2 months payments if I were to draw down on them. I have not yet applied for a 3 month payment holiday. My question: Is better to apply for the 3 month holiday before 31st October (which won’t go on my credit file) and leave my overpayments for now? If I use my overpayments first and then need to apply for the holiday it will be on my credit file after 31st October. Separately, I will also be looking to see if I can get anything to help at this time through Universal Credit. I am actively looking for work, but have no idea when I will find something - hopefully soon! Thanks, Jay 

[Deleted User]

It depends on your circumstances. Taking a mortgage holiday is worse from a further credit perspective, but if you have real financial concerns, I would take it. 

Thrugelmir

Do what's best for your circumstances now. Credit history can be rebuilt. 

gizmo111

The mortgage company may insist you use the overpayments before you can have a holiday.
Best talk to them and see if you can plan a holiday in advance before the 31st.