Mortgage Holiday

FlyingByrne

Good Afternoon, 

I'm wondering if anyone has any experience yet in taking a holiday repayment and then remortgaging later in the year. We're currently on a 2 year fixed rate, which ends in March 22. I'm concerned if we take a mortgage holiday now and it ends in June 21, come March 22 we struggle to get onto a new lower rate. Has anyone found any difficulty with this over the past number of months. 

K_S

@FlyingByrne I can't predict how it will be for you, as it depends on the specifics, but generally speaking, having taken a covid mortgage holiday (the government mandated one which doesn't show on your credit report as arrears) should not stop you from remortgaging come next year.

I have done remos for at least 3 clients who took covid mortgage breaks over summer and it wasn't a significant hindrance in any of those cases.

bamgbost

We did this. had a 3 month holiday... and remortgaged with Halifax. We stayed with them.

The only requirement was that prior to remortgage we had come off the holiday and had made at least 1 normal repayment. There was zero impact.

If you were to change lender, it could be different. But again as it a government approved holiday, I would hope it makes little difference.

Thrugelmir

Are you intending to remortgage to a new lender?  Remaining with your existing lender is just a product switch. 

If you take a holiday then your debt owed will increase. The obvious concern for any lender will be the stability of your personal finances. As a request for a holiday suggests financial duress. A holiday simply being a deferral not a solution to the underlying issues. 

FlyingByrne

No, I'm with Santander. Currently on a 1.85% 2 yr fix, and I'd ideally plan to stay with them. Apologises for using the wrong term.  My main concern was having a product switch/remo come March 22, as Ive no plans to take any credit out for the foreseeable future. 

Thank you everyone who has posted for their guidance so far.