When you take a mortgage you will have agreed to various terms and conditions relating to the costs of borrowing (the interest rate and arrangement fees), the term of the loan (how many years are you repaying the loan over) and how your repayments will be made up (Is the mortgage ‘interest only’ or repayment), etc.
Despite the terms you have agreed, in some cases you might be able to persuade your lender to let you delay or reduce your monthly payments for an agreed period of time. This is generally referred to as a ‘mortgage holiday’. You might like a mortgage holiday to help you whilst you are coping with redundancy or the birth of a new child.
You will be more likely to obtain a mortgage holiday if your previous repayment history has been exemplary. It is also more likely that you will have a better chance to obtain a mortgage holiday if you have previously overpaid on your mortgage thus reducing the outstanding mortgage before the holiday period.
In any event, if you do persuade your lender to allow you a mortgage holiday (usually for a period of between a month and twelve months) you will need to remember that during the holiday period the interest on your outstanding loan continues to add up. At the end of the holiday you’ll owe more than at the beginning and your new monthly repayments are therefore likely to go up as a result.
You may also want to check with your lender that they are not going to treat your agreed payment holiday as “Mortgage Arrears” as this could affect your credit status.
For more information, contact us or speak to a mortgage adviser on 01628 507477.
Recent posts
The chancellor has advised that landlords could have another tax to pay this autumn as the Treasury decide whether to extend national insurance contributions to rental income.
According to a report in the Guardian, senior ministers have asked Treasury officials to look into a “proportional” property tax to see how it would work as an alternative to the existing stamp duty land tax on owner-occupied homes.
More than a quarter of UK adults in long-term relationships (26%) have reported that despite living together, they keep their finances separate from one another.
There has been a rise in both rent and mortgage costs over the last three years, with renters seeing a greater increase in their monthly payments than those with a mortgaged property.
Delayed Start Mortgages
23 days ago
The new Delayed Start Mortgage launched by Skipton Building Society allows first time buyers to postpone the first three mortgage payments. This product has been designed to help soften the blow of moving in costs for first time buyers.
Green Mortgages | Rewards and Benefits
25 days ago
Mortgage lenders are starting to recognise their “Green” responsibilities when it comes to the different products they offer.
A recent study by Boon Brokers where 1,000 people who had used an estate agent over the last year were surveyed, showed that a whopping 52% said they were pressured into using the estate agents’ in-house mortgage broker.
When will mortgage rates fall further?
25 Jul 2025
Analysts are predicting further rate cuts this year, with the next one possibly coming down to 4% when the Bank of England’s Monetary Policy Committee meet on Thursday 7th August 2025.
More information
Trusted by
