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.
Lloyds Banking Group has jumped on the bandwagon to boost lending for first-time buyers as they allocate an additional £4 billion to help first-time buyers on to the property ladder.
As the Loan to Income (LTI) cap has been increased to 5.5 times income, applicants who fit the First Time Buyer Boost criteria could borrow up to 22% more.
The government is introducing mortgage reforms to boost homeownership, stimulate economic growth, and make the housing market more accessible, especially for first-time buyers.
Chancellor Rachel Reeves has announced the most significant mortgage reforms in over a decade—great news for those dreaming of homeownership.
Nationwide ease their ‘Helping Hand’ mortgage designed to help first-time buyers get onto the property ladder by allowing them to borrow up to six times their income.
9 days ago
Keeping the kids entertained over the six-week summer holidays isn’t always easy, especially with the cost-of-living making it even more difficult. Below is a list of fun, inexpensive ideas to do over the break
The Financial Conduct Authority (FCA) has published a discussion paper about the future of the mortgage market in a bid to improve access for first -time buyers, self-employed, and those borrowing in retirement.
Ever wondered where the most reasonably-priced towns for families to buy are? Property company, Zoopla has identified the top 10 towns for families to live in the UK by looking at the most affordable towns, and how many people are looking in that area.
18 Jun 2025
There was a 32% increase last year in 100% loan-to-value (LTV) mortgages which are mortgages that require zero deposit. According to a recent report by chartered accountants and business advisers, Lubbock Fine, the reason behind this is buyers simply struggling to save enough for a deposit.
17 Jun 2025
Many people are quite private when it comes to what is in their bank account. In this short blog, we look into what Brits have saved by age group.