Halifax - mortgage holiday impacts on credit?

highnoon888

Hi all,

Will try calling Halifax tomorrow to get some info, but hoping people can give me an insight on what to expect.

Our mortgage fixed term deal ended last month and our payments have gone from £752 to c.£1500. Our broker couldn't get us switched in time due to a range of factors, such as being in the process to get ILR, and needing to go with a certain lender to get a tracker without exit penalties since we are going to be moving soon.

We will have the ILR next month, which means we can go to a tracker that is only £1020 per month instead of the current £1500.

However, it just feels like we're going to be throwing £500 into the air with Halifax due to being on 8.7% this month. 

We've thought about taking a partial payment holiday for one month, and just pay £1000 instead of £1500. The question is, does this impact our credit score? Will it show on the file or make it harder to get another mortgage or credit in the future? I'd rather bite the bullet and continue to pay the full amount than leave a mark on our account that other lenders may use to increase rates or decline a future application.

Any insight into how this works? Almost everything on Google and the MSE site is based on COVID-19 mortgage holidays, which isn't the situation any more.

pogg000

Is it worth the risk?

la531983

Almost certainly this would be seen as a payment arrangement, I wouldnt bother.

amnblog

You wont avoid the £500 extra interest

If there is no cashflow issue, what is the point?

MWT

highnoon888 said:

However, it just feels like we're going to be throwing £500 into the air with Halifax due to being on 8.7% this month. 

We've thought about taking a partial payment holiday for one month, and just pay £1000 instead of £1500.

Even if your lender agreed to the 'holiday' it doesn't stop the interest accruing, so you'll end up owing more than just the £500 you missed, and yes, it will almost certainly show up on your credit record.