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Mortgage, credit card and loan schemes end today


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Payment holidays are ending in the UK – but there are options

https://www.theguardian.com/money/2020/oct/30/payment-holidays-uk-mortgage-credit-card-loan-schemes

..The number of people still on a mortgage payment holiday is relatively low – it stood at 162,000 on
9 October. But the economy is clearly very fragile and local lockdowns are likely to lead to
increased financial difficulty for many people.

According to the banks, support for mortgage customers may include:

• Extending the length of your mortgage term.
• Changing the type of mortgage you have (in other words switching to interest-only for a time).
• Deferring monthly payments....

 

https://twitter.com/hashtag/MortgageHolidays?src=hashtag_click

Edited by Saving For a Space Ship
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Mortgage holidays extended for up to six months.

Looking around online, it seems a total of six months is allowed. This could include five months before today and then just one more month going forwards. After that, its case by case, at the lenders' discretion. Happy to be proved wrong if others have read this differently.

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The debt will just compound

Only the interest compounds, we did it for 6 months , you have various options when it ends, we took the extend the mortgage for 6 months option, payments only rose £14 pcm, will take six months later to clear the mortgage. no Biggy.

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That is pennies. 

Not that I think it's a difficult decision for the banks at present.

What is the cost of the negative publicity of being seen doing a repossession just now, or even adding punitive charges?

They own the assets whose value would be damaged, as people would be more likely to sell if they feared the bank would be aggressive.

Extending and pretending until calmer times occur seems to be the lower risk option. I am sure we thought that the first lockdown would be it, but I still think that the same thinking applies to this one - it'll take us close to vaccine times and then everything goes back to normal.

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I have no sympathy for mortgage holidays ended, not having received a rent holiday.

I get the feeling. But the thing here is that the mortgage holder had been let off nothing and it will still need to be paid back with even more interest in total. 

The banks are happy to lend the money and delay payments (i think we all know why) but how would this scheme work in the rental sector? Free rent or a loan?

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That is pennies. 

Not that I think it's a difficult decision for the banks at present.

What is the cost of the negative publicity of being seen doing a repossession just now, or even adding punitive charges?

They own the assets whose value would be damaged, as people would be more likely to sell if they feared the bank would be aggressive.

Extending and pretending until calmer times occur seems to be the lower risk option. I am sure we thought that the first lockdown would be it, but I still think that the same thinking applies to this one - it'll take us close to vaccine times and then everything goes back to normal.

We have been repaying the mortgage for 2 months now, as we jumped straight on it when announced in March as our next mortgage payment was 30th March.  After 3 months we where given to option to extend for another 3. 

Will have to see what is announced by FCA tomorrow for details, but in my mind if they want to stop you earning a living, even those who already took 6 months should be able to take a further 1-3 months, reviewed month on month depending on if we reopen in December / Jan or Feb.

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I get the feeling. But the thing here is that the mortgage holder had been let off nothing and it will still need to be paid back with even more interest in total. 

The banks are happy to lend the money and delay payments (i think we all know why) but how would this scheme work in the rental sector? Free rent or a loan?

if they really want to boost the economy they could issue a joint mortgage and rent holiday. It would be like a universal basic income except without the administration costs. It's no worse for the banks.

There must be some people who are able to wangle mortgage holiday on a BTL whilst still collecting payments. If so they get to repay the mortgage (plus a bit more interest) with 9 more rental payments. Whilst the tenants' position is unchanged.

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Problem is for many landlords is that properties is unencumbered. Which means the change for them would be massive. 

Also for a homeowner there is a clear incentive to clear the 6 months debt which is just appended to the end of the tenancy.

I think this isn't so true for renters. 

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I get the feeling. But the thing here is that the mortgage holder had been let off nothing and it will still need to be paid back with even more interest in total. 

The banks are happy to lend the money and delay payments (i think we all know why) but how would this scheme work in the rental sector? Free rent or a loan?

I completely agree with this post. Can someone who's just lost their income not get their rent paid for a period by universal credit anyway??

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  • 439 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%



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