Brilliant Mortgage Holiday Question !!!!!!!

famousipod

I've had a motgage holiday and I'm wondering if I requested another one before 1st November and my current mortgage fixed rate runs out and I want to get a new deal during this period .

Can the bank refuse my request for a new deal even if I meet the criteria?

Thrugelmir

The bank doesn't have to offer you a new fixed rate mortgage product. You could simply default onto their expensive SVR. Likewise what they do offer you, could be influenced by your account conduct. Lender holds all the cards. 

Yahoo_Mail

famousipod said:

I've had a motgage holiday and I'm wondering if I requested another one before 1st November and my current mortgage fixed rate runs out and I want to get a new deal during this period .

Can the bank refuse my request for a new deal even if I meet the criteria?

Their criteria may well include making all contractual payments on time.  You have failed to do this so they have every right to refuse to put you on a new deal.

dunstonh

Authorised arrears shouldnt prevent you from buying a new deal with them.   However, you have probably killed your chances of moving to a new lender in the short term.

ToxicWomble

You might want to change you title to “Not very smart”

TheAble

Thrugelmir said:

The bank doesn't have to offer you a new fixed rate mortgage product. You could simply default onto their expensive SVR. Likewise what they do offer you, could be influenced by your account conduct. Lender holds all the cards. 

Might be a bit unfair if they did that though? The mortgage holidays aren't meant to affect your credit record. 

bradders1983

TheAble said:

Thrugelmir said:

The bank doesn't have to offer you a new fixed rate mortgage product. You could simply default onto their expensive SVR. Likewise what they do offer you, could be influenced by your account conduct. Lender holds all the cards. 

Might be a bit unfair if they did that though? The mortgage holidays aren't meant to affect your credit record. 

Well technically they dont, as in no special marker is placed on your file. HOWEVER, lenders can see that balances remained static (or went up) which is a clear indicator that a holiday happened, and can make their own decision based on this, and there is not a thing you or I can do about it.

TheAble

True, but it's difficult to justify stiffing with an SVR someone who's needed a mortgage holiday.

mattyprice4004

TheAble said:

True, but it's difficult to justify stiffing with an SVR someone who's needed a mortgage holiday.

Unfortunately they don't need to justify it - they either take up a new deal elsewhere or stay on the SVR.

Thrugelmir

TheAble said:

Thrugelmir said:

The bank doesn't have to offer you a new fixed rate mortgage product. You could simply default onto their expensive SVR. Likewise what they do offer you, could be influenced by your account conduct. Lender holds all the cards. 

Might be a bit unfair if they did that though? The mortgage holidays aren't meant to affect your credit record. 

They haven't affected your credit record as such. What they will impact is any future decision. Though over time this of course dilutes as time heals. Payment holidays should never be requested on a whim. Under normal circumstances lenders will approach the matter differently. Not simply grant them on request. 

Lenders will be using this backstop in order to close any loophole of abuse. There'll be some "clever" people who think that they can exploit this situation to their own advantage. 

Money is priced to reflect risk of default. Lending rates have a methodology behind them. 

TheAble

Thrugelmir said:

TheAble said:

Thrugelmir said:

The bank doesn't have to offer you a new fixed rate mortgage product. You could simply default onto their expensive SVR. Likewise what they do offer you, could be influenced by your account conduct. Lender holds all the cards. 

Might be a bit unfair if they did that though? The mortgage holidays aren't meant to affect your credit record. 

They haven't affected your credit record as such. What they will impact is any future decision. Though over time this of course dilutes as time heals. Payment holidays should never be requested on a whim. Under normal circumstances lenders will approach the matter differently. Not simply grant them on request. 

Lenders will be using this backstop in order to close any loophole of abuse. There'll be some "clever" people who think that they can exploit this situation to their own advantage. 

Money is priced to reflect risk of default. Lending rates have a methodology behind them. 

I do appreciate what you're saying. I just think it would be viewed as unreasonable if a lender grants a customer a covid-related payment holiday, and then a few months later when that same customer's fixed rate comes to an end and he asks for a new fixed rate, to then say no, we're putting you on SVR i.e. we're going to make your mortgage less affordable for you.
I fully accept of course that they're entitled to do this, but they also have a duty to treat customers fairly.