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.

Your home may be repossessed if you do not keep up repayments on your mortgage.

There will be no fee for Mortgage Advice. There may be a fee for arranging a mortgage. The precise amount will depend upon your circumstances, but we estimate it to be between £399 and £599.

Mortgage Required Ltd, Finance House, 5 Bath Road, Maidenhead, SL6 4AQ is authorised and regulated by the Financial Conduct Authority reference 573718 at www.fca.org.uk.

The Financial Ombudsman Service is an agency for arbitrating on unresolved complaints between regulated firms and their clients. More detail can be found on their website: www.financial-ombudsman.org.uk