It's the final countdown...£10k to go

t2rry

Ok, I have a question if anyone might have a view. 

With the new lockdown announcement comes an extension to the mortgage payment holiday scheme. My reading suggests that taking it would NOT impact upon your credit file. Is that right? 

If I’m wrong there, the following questions are irrelevant as we wouldn’t consider it. If that’s right, however, I continue....

my job is a temporary contract. Given how this year has gone, whilst I’ve worked from home without issue throughout, I don’t believe it has a hope in heck of being extended. I am applying for new jobs now, I’ve seen one I really really want (permanent position) but of course there’s no guarantee. 

Whilst ordinarily, I’d be confident in obtaining a new position, it seems possibly the worst time to be looking for employment alongside a very big pool of people. 

I’m asking whether I should be considering the mortgage payment holiday scheme in anticipation of potentially being down to one income within the next 6 months. 

Strictly speaking we don’t absolutely need it, and I never considered it for a second before now, but now things are as they are I have started to wonder, albeit appreciating that generally we are in a very fortunate position right now and help should maybe be left to those who really need it.  

Any thoughts welcome

DayDreamerandGeneralWaster

It might be worth asking on the coronavirus board. I think you might have to pay the arrears via increased payments when you come off the holiday period as the term remains the same. Have you over paid at all? That might make a difference. Someone posted that their credit file was impacted, but this could have been for non mortgage debt. Best to get that clarified first. 

MidsHollie

Hi T2rry, I just thought I'd come along and comment about my "annual spends" sinking funds. 
I (should) put just under £300 in to a separate account, which is my sinking funds for annual /irregular expenses. I'm having a pretty frugal 2020, so I think I budget £20 per month there for clothes, £10 for medical / dental, £50 for additional travel etc. I have found though that I have been paying for these things out of my groceries and fuel account, and then wondering why I spend all my money so quickly! The last couple of months I've been pulling out the relevant amounts when I have spent it, meaning my budget is much more reflective of what is actually happening. I keep track of the spends and the amounts on a spreadsheet, and if I significantly overspend or underspend in any areas I can adjust accordingly for next year.
It sounds like your relationship is built on some strong foundations, I hope I can be as reasonable as you when I find someone I can tolerate for the next few decades!

Sarahwithlove

I think there not supposed to but if you remortgage in future I believe they will be able to see that you took a mortgage holiday. Maybe give your mortgage company a call and chat with them about it. 

pink_fluffy_sparkles

t2rry said:

Ok, I have a question if anyone might have a view. 

With the new lockdown announcement comes an extension to the mortgage payment holiday scheme. My reading suggests that taking it would NOT impact upon your credit file. Is that right? 

If I’m wrong there, the following questions are irrelevant as we wouldn’t consider it. If that’s right, however, I continue....

my job is a temporary contract. Given how this year has gone, whilst I’ve worked from home without issue throughout, I don’t believe it has a hope in heck of being extended. I am applying for new jobs now, I’ve seen one I really really want (permanent position) but of course there’s no guarantee. 

Whilst ordinarily, I’d be confident in obtaining a new position, it seems possibly the worst time to be looking for employment alongside a very big pool of people. 

I’m asking whether I should be considering the mortgage payment holiday scheme in anticipation of potentially being down to one income within the next 6 months. 

Strictly speaking we don’t absolutely need it, and I never considered it for a second before now, but now things are as they are I have started to wonder, albeit appreciating that generally we are in a very fortunate position right now and help should maybe be left to those who really need it.  

Any thoughts welcome

Hi just found your diary your doing fab with the repayments!! Ive book marked it so i can find it again

I believe that whilst the mortgage (and other holidays) do not affect your credit score, lenders can see that for them months your balance didnt go down, and infact maybe went up because of interest. So they know that you took a break and this could have negative impact on re mortgaging under afordability. However that said, if you need a payment holiday, it still looks better than a missed payment. 
Xx 

t2rry

Thanks everyone, really appreciate the input.  On the basis that we'd only be doing it as a preventative measure(not sure that's the right word, but I think you get what I mean, we'd be doing it just in case of potential future issues) and theoretically without my income we would still be able to meet all our payments, I'm not going to consider the mortgage holiday any further.  I don't think it is worth it to us if there's even a chance of it being taken into account when looking to remortgage.  As it happens we should be doing that within the next year so we just need to make the best of our financial situation in the meantime.   

t2rry

Signature updated with OH credit card payment gone out, small but something.  

I'm also going to start my xmas shopping today, which means spending next months budget this month, but I think it's the best way to make sure I'm spending in a savvy way.

I am aiming to save money on every purchase against the budget.  So for instance, one child wants something very specific that costs £54.99 (at its cheapest) on a budget of £55.  Yes I set this budget with the item in mind but it would have been £50 anyway and it's the only gift from us so I think that's reasonable.   Anyway, today I've seen it has been reduced to £50 and I also have a £7 voucher for that shop, running out this week.  This is what is pushing me to start today with the purchasing over the planning  So in this example it means that I've 'spent' the budget but I've saved cash from it too, which I will set aside in its own little pot.  It means that everyone on my to buy for list has their set budget and will receive the worth of their budget, but I benefit from a little cash pot of savings.  In previous years if I ever managed this I would spend the excess on another small gift or something, I do love giving presents, but I think that's unnecessary so that's how I'm making this year better than others for my purse.  

I don't expect to be saving loads, but it'll keep me from panic buying, when I leave things too late I always panic and overspend for the sake of having something sorted.  

ceremony

Just catching up on your diary.

I think you're doing the right thing not taking the mortgage holiday if you don't need it. It doesn't go down as 'missed payments' but from what I've read if you try to remortgage one of the things they'll ask is whether you took the holiday - so better not to risk it.

Good work finding deals on your festive shopping! It's great being able to give presents but it should never be at the expense of your own finances, and that's something a lot of people forget at Christmas. If you can budget that takes a lot of stress out of it.

t2rry

Thanks @ceremony I'm sure you're right, I was in a funk last week and thinking from a worst case scenario perspective but realistically I don't see myself out of work unless I choose to take a break, and even if I did (highly unlikely), we'd be able to afford it, so barring anything horrendous we really don't need the break.  

On the festive shopping I'm thrilled, we did the sainsbobs double up today and I've been able to attribute £86.49 to the xmas budget, which means that's £86.49 I'm adding to the £12 saved the other day.  Not a bad start.  Especially when I think back, previous years I'd easily spend £1,000 or more (my family have always done xmas quite big, we've never bothered so much with birthdays or anything else because of circumstances and since I've been an adult I've certainly wanted to spoil my parents a little after the many years of them spoiling me!) but the last few years I've really battled it down to what's worthwhile.  Sometimes throwing an extra £10-£20 or even more at a gift doesn't make it a  better gift, so it's all much more thought through now and I look for the  bargains and the discounts on the things I know people would love rather than the fanciest version.  I think now I average more like £750 per year and that's with 2 of my own kids now included, let alone everyone else's.  I've no idea if that's a lot or not but I'm pretty pleased with it.  It means we can still save over £1000 in December as a starting point, and to have already 'saved' nearly £100 of that budget, I'm feeling pretty thrilled about it and I'm looking forward to finding more savings! 

t2rry

I forgot to take into account a multibuy saving, it's actually £90.49 I can attribute, if I follow my own rules correctly.  That's over £100 by a nose already, brilliant!