Jump to content
House Price Crash Forum

Tens of thousands of homeowners face difficulty remortgaging after taking payment holiday


Recommended Posts

https://www.independent.co.uk/news/business/news/uk-mortgage-payment-holidays-remortgaging-a9600786.html

Lenders to ask tough questions of borrowers who took a break from home loan payments, despite government assurances that credit files would not be affected

"...Tens of thousands of homeowners who took mortgage payment holidays to help them through the coronavirus pandemic are facing higher repayments or may find it harder to remortgage over the next 12 months, despite assurances from the government and regulators.

Experts warned that confusing messages from ministers had left consumers unaware that taking a break from paying their home loan could harm their chances of getting credit in future and increase the costs of remortgaging.

About 70 per cent of people who have taken a payment holiday did not need to take one for financial reasons, according to figures from banking trade body UK Finance."

 

carell.gif.fdaf82f9d953773c6e842f545506eb17.gif

 

(P.S. Apologies if already posted?)

 

Link to post
Share on other sites
7 minutes ago, highcontrast said:

https://www.independent.co.uk/news/business/news/uk-mortgage-payment-holidays-remortgaging-a9600786.html

Lenders to ask tough questions of borrowers who took a break from home loan payments, despite government assurances that credit files would not be affected

"...Tens of thousands of homeowners who took mortgage payment holidays to help them through the coronavirus pandemic are facing higher repayments or may find it harder to remortgage over the next 12 months, despite assurances from the government and regulators.

Experts warned that confusing messages from ministers had left consumers unaware that taking a break from paying their home loan could harm their chances of getting credit in future and increase the costs of remortgaging.

About 70 per cent of people who have taken a payment holiday did not need to take one for financial reasons, according to figures from banking trade body UK Finance."

Oh dear, so all of that 70% could not resist the temptation to take what they probably thought of as an offer resembling  free money.

Which of course, was not free at all and not only that, it now affects their future borrowing.

I saw Matin Lewis on tv several times warn people not to take Mortgage Holidays unless it was absolutely necessary.

Link to post
Share on other sites

Indeed Martin Lewis warned against it on his emails and website too. Let's face it, if your deal expires and you want to stay with the same lender, they're under no obligation to offer you a competitive interest rate if you've unwittingly signalled you're in financial difficulty. 

I know a guy who's wife was made redundant recently, he then bought a £650 Dyson vacuum cleaner, then applied for a mortgage holiday on the same day.

 

 

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

I saw Matin Lewis on tv several times warn people not to take Mortgage Holidays unless it was absolutely necessary.

Also saw in his emails repeatedly.

Moral hazard is off the charts, hence the s**tstorm we're in.

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

About 70 per cent of people who have taken a payment holiday did not need to take one for financial reasons, now need to take one due to financial reasons, according to figures from banking trade body UK Finance."

Fixed

Link to post
Share on other sites

As mentioned before: this is a good lesson on cakeism and its consequences.

I don't think anyone should be denied a mortgage just because of the mortgage holiday, but having to answer questions about it makes sense. If you signal financial difficulty, that signal matters.

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.