6 months interest free

ConcernedWife101

Can anyone help? We have a large mortgage (£300k) which comes to the end of its low % fixed deal in June. It still will have 20yrs to run and there is no scope to extend the term due to our ages. 

My husband is unemployed and I am considering asking to go interest only for 6 months. This would take us beyond the end of the fixed rate deal. We have savings to keep us going till September without doing this. Hopefully my husband will be able to get a job before then but there is obviously no guarantee - my wages are not enough to cover our expenses even if we cut spending to an absolute minimum.
Will asking for this now jeopardise our chance of getting a new fixed deal from our mortgage provider? Does taking 6 months interest free mean we have to stay for 6 months with our current provider (I am aware that if he doesn’t get a job very quickly we wouldn’t pass the affordability test for a new mortgage deal). Does anyone have any other advice? We have no missed payments, no other debt.

Mark_d

I suggest being proactive and talking to your mortgage provider now.  They might allow you to go interest-only now and change back to repayment when your husband gets a new job.

Going interest-only should not extend the term of your mortgage...but your rate of capital repayment will be slightly higher once you're off interest-only.

When our fixed rate deal comes to and end in June, you might not need to worry about remortgaging.  I've only remortgaged once since being in my current home.  As my current mortgage provider generally offers a competitive deal, it's much more efficient to book a new rate with the current provider rather than remortgaging to someone else.

born_again

Just be aware that taking the 6 months interest free will be marked on your credit history. So could/will getting a deal else where harder.
Yes, you will have to stay with current lender in the 6 months of the interest free period, as it is their decision to allow you do this. 

How close are you to the end of your deal?

ACG

born_again said:

Just be aware that taking the 6 months interest free will could be marked on your credit history. So could/will getting a deal else where harder.
Yes, you will have to stay with current lender in the 6 months of the interest free period, as it is their decision to allow you do this. 

How close are you to the end of your deal?

I think its an important point raised, but the key word is could, not will. It depends on the lender. 

Hoenir

Payment holiday's granted are normally a sign of financial distress. For the data held by CRA's to be worthwhile paying for. Needs to be accurate as possible. Odds on the holiday will be flagged. Providing a warning to other users of the data. 

Lenders have a duty of care towards borrowers. Speaking to the lender though is essential. They won't provide any long term solutions though.