Coronavirus payment break - future impact?

virginblue4

Hi everyone,

Today is the final day that the coronavirus mortgage payment break can be applied for and I’m wondering now that it has been around for a while, are people finding that they are struggling when it comes to remortgaging if they’ve taken a break? 

We’ve not had not had to take one so far, but with the likelihood of another lockdown being announced next week (which may mean I’ll be put on the ‘new’ version of the furlough scheme - 67% of salary) and a baby due in two weeks meaning my partner has had to start maternity leave early, I’m trying to plan ahead and think that this scheme may offer a very useful safety blanket if needed (it may not be - but I don’t know at this stage). However, we are due to remortgage in December 2021 and I want to know if it is likely that an agreed break will negatively impact remortgaging next year? So far, we are 2 years into our 3 year fixed deal and this is our first and hopefully forever home. 

I know in the beginning there was a lot of uncertainty, but I’m hoping people can share their experiences? 

haras_n0sirrah

Like for like remortgage should be fine.
People being told no are those who are trying to move and borrow more money shortly after taking a payment break 

virginblue4

haras_n0sirrah said:

Like for like remortgage should be fine.
People being told no are those who are trying to move and borrow more money shortly after taking a payment break 

Thanks, appreciate the response. 

Since buying our first house, we’ve put a few things on 0% credit (approx £25,000 - completed model of downstairs and a car loan). Obviously we didn’t have this at the time of taking our the original mortgage and we have our first child due in a couple of weeks so all things that will have an impact on our affordability as it it. We have no plans to borrow any more money until the existing debts are paid off. Would be still likely be ok if we take a mortgage break or would these things combined affect us negatively?

[Deleted User]

If its just a question of picking a new deal “online” when your current one expires, then you should be ok, as they do not run affordability checks. Well they dont at the moment, but who knows what is around the corner with this disaster ? 

People have found payment holidays, furlough, self employed grants and business loans have turned round and bitten them hard when they have tried to move! All the above was lovingly dressed up as ways to help, and were taken by those who needed them ( and also by those who did not) and unfortunately the ramifications of doing so are only just being seen. 

Its an unprecedented situation happening right now. To answer your question my personal response  is “ I dont know and I doubt anyone else can give you a 100% guarantee, just a best guess answer “