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
Many households are still being affected by the high cost of living, with several people worrying about how they can make ends meet on a monthly-basis. Unfortunately, the cost of bills including, water, council tax, and energy are still rising. Here are some things you can do.
The Renters’ Rights Bill represents a significant milestone designed to enhance the rights and protections of tenants in the rental market. This comprehensive bill aims to foster a more balanced and fair rental sector, ensuring that tenants can enjoy greater security and equitable treatment. It is likely to become law in late 2025.
Limited Company vs Single Name Buy to Let
15 days ago
Owning a buy-to-let property in your sole name versus through a limited company each has its own set of advantages and disadvantages.
Top 10 property price hotspots in 2024
21 days ago
Data from Rightmove shows that Sunbury-on-Thames in Surrey was the number one house price hotspot in 2024. The prices in this area climbed an impressive 12.5% - increasing from an average price of £527,005 in 2023 to £592,926 in 2024.
Buy to Let Stamp Duty Changes April 2025
24 days ago
On the 31st October 2024 stamp duty for those purchasing additional properties increased by 2% from 3% to 5%.
From 1st April 2025 the threshold will be reducing from £250,000 to £125,000
Where did Londoners move to in 2024?
24 Jan 2025
Research from Metro shows that those who chose to move home didn’t actually move that far away. With a 430g pack of chicken costing on average almost double in London than the rest of the UK, it's no wonder some people are choosing a change of scenery to save a few pennies.
Reasons to get a Buy to Let Mortgage
20 Jan 2025
Following recent changes in the Buy to Let market, some investors may find this product less appealing. However, if done correctly, building a buy to let portfolio can be very profitable.
Stamp duty: how is it changing in 2025?
7 Jan 2025
Helping you understand the upcoming changes in stamp duty (SDLT) from April 2025.
More information
Trusted by
