Will mortgage payment holidays beyond having 6 months return?

IAMIAM

Or will it be same as 

bamgbost

same as ( for now)

Thrugelmir

Do you require one? 

IAMIAM

Thrugelmir said:

Do you require one? 

No - So why ask - Because some friends have been out of work a whole year now
Yes - Well ring your bank then and enquire for support 

CSL0183

General question and unrelated to the OP’s question, was taking a mortgage holiday last full lockdown detrimental to your credit file and borrowing power? Did the banks just freeze interest for 6 months or extend their terms for 6 months so that the same amount of capital and interest was repaid or are the accounts now in 6 months worth of allowable arrears? Interest is charged on a daily basis so what would stop someone opting for the 6 month holiday and then paying a great whack of their mortgage in an additional payment afterwards, essentially gaining from the one off large capital payment and gaining from having interest frozen?

davidmcn

CSL0183 said:

are the accounts now in 6 months worth of allowable arrears? 

This. Which in the end means even more interest to pay. "Holiday" is a rather misleading name. 

kingstreet

The original intention of the 'holiday' was to make voluntary overpayments then effectively pay nothing for a few months at another time. For example, one client paid their full annual mortgage payment spread over ten months then had a holiday in December and January just as you can pay your council tax over ten months and have Feb and March off.
As mentioned earlier, the current forebearance measure under Coronavirus is authorised arrears.

CSL0183

kingstreet said:

The original intention of the 'holiday' was to make voluntary overpayments then effectively pay nothing for a few months at another time. For example, one client paid their full annual mortgage payment spread over ten months then had a holiday in December and January just as you can pay your council tax over ten months and have Feb and March off.
As mentioned earlier, the current forebearance measure under Coronavirus is authorised arrears.

Are lenders looking at this negatively do you think? I wonder how it’s reported to the CRA’s?

Thrugelmir

CSL0183 said:

kingstreet said:

The original intention of the 'holiday' was to make voluntary overpayments then effectively pay nothing for a few months at another time. For example, one client paid their full annual mortgage payment spread over ten months then had a holiday in December and January just as you can pay your council tax over ten months and have Feb and March off.
As mentioned earlier, the current forebearance measure under Coronavirus is authorised arrears.

Are lenders looking at this negatively do you think? I wonder how it’s reported to the CRA’s?

Any deferment is going to be negative when it comes to the granting of credit of any kind. Indicates financial stress. Then ultimately could be distress. 

Thrugelmir

IAMIAM said:

Thrugelmir said:

Do you require one? 

No - So why ask - Because some friends have been out of work a whole year now
Yes - Well ring your bank then and enquire for support 

Then a holiday can only help so much. Each case will be treated individually.