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

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.

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.

Research from buy-to-let lender, Landbay, shows that UK landlords are looking at raising rents ahead of the Renters' Rights Bill which is due to come into force this year.

Data shows landlords could miss out on green mortgages due to expired energy performance certificates.

Buying a house is a big deal, and where you are planning to buy will make a difference financially. In this short blog, we look at the most affordable and most expensive areas and how much you need to be earning to buy in there.

Equity release is a type of mortgage that allows homeowners 55 and over to access money from their property's equity without having to leave their home. This is done by securing a loan against the house which is usually repaid by selling the property when the borrower passes away or has to move into long-term care.

It’s important to ask questions about the property you are interested in before taking that step to make an offer. A little probing can make all the difference between buying your dream house or something that requires a lot of work.

There are millions of homeowners over the age of 60 who are likely to release money from their homes to pay for their lifestyle during retirement giving those who are 'asset rich but cash poor' a way to live out their retirement the way they wish.