Jump to content
House Price Crash Forum

The fallout from mortgage holidays


Recommended Posts

Seems many have fallen into the trap of taking the three month mortgage holiday thinking it wouldn’t have any negative effects moving forwards 

shock horror banks are taking this into account.

i must admit I did toy with the idea of taking one just for some spends but common sense prevailed 

won’t be long until we get a lot of sob stories about this 

Link to post
Share on other sites
1 hour ago, jiltedjen said:

Seems many have fallen into the trap of taking the three month mortgage holiday thinking it wouldn’t have any negative effects moving forwards 

shock horror banks are taking this into account.

i must admit I did toy with the idea of taking one just for some spends but common sense prevailed 

won’t be long until we get a lot of sob stories about this 

Is it going on official credit records? Guess it must, when I look at my credit check thing you See repayments for everything going back years, so if a bank sees a series of voids, no dice when it comes to applying for a new loan, especially in the next year or two.

Link to post
Share on other sites

They said it wouldn’t have any impact on credit score and it hasn’t, it’s just the history of repayment is now ruined and is just as bad as a bad credit score.

The problem here is the people who took the deal with the devil incarnate (bankers/politicians) and thought that there wouldn’t be consequences.

Link to post
Share on other sites

I suppose those who actually needed it probably still had benefit from it even with the fallout, for those people it did probably help them

for those using it for some quick spends, I guess they reap what they sow 

I personally considered it, but if anything I would rather pay the mortgage off quicker and I can live without a hot-tub for a few more years 

Who is it effecting? Those who want to move up the ‘ladder’ ? or even those remortgaging? 

Link to post
Share on other sites
39 minutes ago, jiltedjen said:

I suppose those who actually needed it probably still had benefit from it even with the fallout, for those people it did probably help them

for those using it for some quick spends, I guess they reap what they sow 

I personally considered it, but if anything I would rather pay the mortgage off quicker and I can live without a hot-tub for a few more years 

Who is it effecting? Those who want to move up the ‘ladder’ ? or even those remortgaging? 
 

Yes indeed. It is the unnecessary spending thing.
 

Mortgage Holidays often the result of Holiday Mortgages!!!

 

Link to post
Share on other sites
2 hours ago, LetsBuild said:

They said it wouldn’t have any impact on credit score and it hasn’t, it’s just the history of repayment is now ruined and is just as bad as a bad credit score.

The problem here is the people who took the deal with the devil incarnate (bankers/politicians) and thought that there wouldn’t be consequences.

Different lender treat the credit report data in different ways. Some lenders may not even take it into account if the score is high enough, for instance. Its not clear cut and you would have to check differing lenders, who may just add a bit of risk premium on rather than reject outright.

Also, your credit score differs between different credit agencies depending on how they calculate the score. The agencies would have to be specifically instructed (by whom?) to modify their code to exclude the payment holiday,. 

Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    No registered users viewing this page.

  • 415 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.