Mortgage holiday
Mortgage holiday
Unless its really necessary otherwise you will have to default, it’s probably unwise to ask for a mortgage payment holiday.
Although the payment holiday doesnt affect credit reports many lenders are now asking new applicants if they have ever taken a payment holiday and that into account.
Also at the moment a lot of lenders have reduced their loan to value criteria which in the short term will affect those coming to the end of fixed rate deals being able to switch to another lender.
How long the short term hit to house prices last is the big question.
Although the payment holiday doesnt affect credit reports many lenders are now asking new applicants if they have ever taken a payment holiday and that into account.
Also at the moment a lot of lenders have reduced their loan to value criteria which in the short term will affect those coming to the end of fixed rate deals being able to switch to another lender.
How long the short term hit to house prices last is the big question.
-
- Posts: 1371
- Joined: Thu Jun 23, 2016 2:37 pm
- Been Liked: 657 times
- Has Liked: 7 times
Re: Mortgage holiday
is giving plenty of people a little breathing space with all the uncertainty around.
Anyone have a feel/thought for what interest rates will do over the next 2 years ?
Anyone have a feel/thought for what interest rates will do over the next 2 years ?
-
- Posts: 18097
- Joined: Thu Jan 21, 2016 10:35 am
- Been Liked: 3875 times
- Has Liked: 2073 times
Re: Mortgage holiday
Why would anyone want a fix rate deal at the minute?
Interest rates have dropped like a stone.
Any good deal you might find is usually cancelled out by the finders fee.
Interest rates have dropped like a stone.
Any good deal you might find is usually cancelled out by the finders fee.
Re: Mortgage holiday
I certainly wouldn’t want to be on a lender’s general rate after coming off a fixed rate in the next month or 2Quickenthetempo wrote: ↑Tue May 05, 2020 10:41 amWhy would anyone want a fix rate deal at the minute?
Interest rates have dropped like a stone.
Any good deal you might find is usually cancelled out by the finders fee.
Not dropped like a stone, dropped to their lowest ever but from a very low point before that. There are some right drama queens on here
-
- Posts: 7406
- Joined: Sun Apr 08, 2018 2:19 am
- Been Liked: 2310 times
- Has Liked: 2174 times
Re: Mortgage holiday
I have a family member with a huge mortgage, he will probably be out of work for most of the year, if not until next year now due to his line of work so for me it makes sense. Before anyone says it, he absolutely can afford the mortgage he has, but not knowing weather you will have any income for 8 months , you'd be silly not to play it safe whilst the option is there.
Re: Mortgage holiday
I’ve been on the building society’s SVR for about eleven years. It’s 1.5% above the BoE rate, and I’ve never found anything comparable.
This user liked this post: Quickenthetempo
-
- Posts: 18097
- Joined: Thu Jan 21, 2016 10:35 am
- Been Liked: 3875 times
- Has Liked: 2073 times
Re: Mortgage holiday
Mines pretty similar with Lloyd's. Although I took it out 15 years ago with C&G. I had a 3 year fixed and left it for 12 years as interest rates kept dropping.
Never paid a finders fee once.
No drama queenery here my friend
Re: Mortgage holiday
SVR is the bank or building society’s standard variable rate. 1.5% over base rate seems remarkably low and the last time I looked most of the SVRs were nearer to 3.5% or 4% over base rate.
Not doubting what some people are saying but they may be on a different deal than SVR....for example they might have a tracker rate mortgage deal. I had one at 0.5% over base rate....which was of course a very good deal.
Not doubting what some people are saying but they may be on a different deal than SVR....for example they might have a tracker rate mortgage deal. I had one at 0.5% over base rate....which was of course a very good deal.
Re: Mortgage holiday
At last someone else who knows what they are talking about.TVC15 wrote: ↑Tue May 05, 2020 11:16 amSVR is the bank or building society’s standard variable rate. 1.5% over base rate seems remarkably low and the last time I looked most of the SVRs were nearer to 3.5% or 4% over base rate.
Not doubting what some people are saying but they may be on a different deal than SVR....for example they might have a tracker rate mortgage deal. I had one at 0.5% over base rate....which was of course a very good deal.
Re: Mortgage holiday
So not available to new customers and likely to be tracked to base rate type variable product rather than a SVR.
(Is i think all the other poster is saying)
This user liked this post: paulatky
Re: Mortgage holiday
Exactly so not available to everyone and that is not the current standard variable rate for that particular lender.
A bit of digging gets out the truth
Re: Mortgage holiday
Simple mistake - I doubt most people know what SVR actually is and just think it’s any variable rate mortgage. I only know because of my previous job.
Keep the debate civil
Keep the debate civil
This user liked this post: KateR
Re: Mortgage holiday
Mortgage Holidays are certainly right for some people in the current climate. Everyone has a different set of circumstances. Plenty of smug ( think they) no it alls in the comments sections of money and finance articles.
Re: Mortgage holiday
Huge long running argument between a load of dickheads alert
This user liked this post: jackmiggins
Re: Mortgage holiday
I didn’t think you were allowed to go on holiday during lockdown.
Re: Mortgage holiday
Good advice in my original post.
I did put unless its absolutely necessary.
-
- Posts: 139
- Joined: Tue Aug 23, 2016 3:56 pm
- Been Liked: 19 times
- Has Liked: 44 times
- Location: Esher, Surrey
Re: Mortgage holiday
So what do we reckon will be when we hit the sweet spot for timing re-mortgaging in the current climate? I have a cash purchased BTL/HMO which is worth around £240k and will re-mortgage at some point, preferably sooner; I had started the process before the walls came crashing down. Previous one for a similar property was a 5 year fix at 1.96% LTV75%. I might do 60% LTV this time.
-
- Posts: 827
- Joined: Thu Dec 29, 2016 12:49 pm
- Been Liked: 233 times
Re: Mortgage holiday
Do you mean BMR? This is a legacy rate, which guarantees to be not more than 2% above the Bank of England base rate.
I'm on this, and have been since 2013. I've resisted several attempts by Nationwide to lure me onto a different deal. I know that if I do this, I would not be able to go back to the BMR when the deal ends, instead I would revert to the higher SMR rate.
-
- Posts: 827
- Joined: Thu Dec 29, 2016 12:49 pm
- Been Liked: 233 times
Re: Mortgage holiday
It's the BMR rate, guaranteed to be no higher than 2% above the Bank of England base rate.TVC15 wrote: ↑Tue May 05, 2020 11:16 amSVR is the bank or building society’s standard variable rate. 1.5% over base rate seems remarkably low and the last time I looked most of the SVRs were nearer to 3.5% or 4% over base rate.
Not doubting what some people are saying but they may be on a different deal than SVR....
https://www.nationwide.co.uk/support/su ... gage-rates
-
- Posts: 9474
- Joined: Sun Oct 16, 2016 10:47 pm
- Been Liked: 1185 times
- Has Liked: 779 times
Re: Mortgage holiday
Become a recluse & save every penny, I've pretty much worked through the lockdown & spent very little, I promise you'll be healthier & wealthier when we finally come out. The mortgage holiday was tempting but if you can manage without what's the point, just an additional month on top of the remaining term.
Re: Mortgage holiday
I think this thread has made me understand my mortgage rate and why it has remained so low over the last 12 years. My fixed term with the Alliance & Leicester (remember them!) ended in 2008 and I have stayed with them ever since. My statements are from the A&L even though they don't technically exist. Have periodically done comparisons and never thought it was worth changing. Not long left on it however have been overpaying recently until the uncertainty started, have put that into savings although the rate has dropped.
Re: Mortgage holiday
Sorry not sure what you are pointing out.Sean Dyche's Watch wrote: ↑Tue May 05, 2020 6:33 pmIt's the BMR rate, guaranteed to be no higher than 2% above the Bank of England base rate.
https://www.nationwide.co.uk/support/su ... gage-rates
SVR is the generic industry term used in most banks and building societies for their standard variable rate mortgage - ie their normal one of you don’t select one of their fixed products, or trackers or first time buyer ones etc
-
- Posts: 9474
- Joined: Sun Oct 16, 2016 10:47 pm
- Been Liked: 1185 times
- Has Liked: 779 times
Re: Mortgage holiday
If you are tentatively embarking upon the first rung as a FTB you tend to run with what the MA endorses usually at a favourable broker fee not necessarily the fixed deal advantageous to the current financial circumstancesTVC15 wrote: ↑Tue May 05, 2020 7:36 pmSorry not sure what you are pointing out.
SVR is the generic industry term used in most banks and building societies for their standard variable rate mortgage - ie their normal one of you don’t select one of their fixed products, or trackers or first time buyer ones etc
Re: Mortgage holiday
Sorry, yes that’s it. I went on to it in 2008 (it was the default thing after a two year deal), and it was a better situation than paying to go on a different deal. 2% above BoE rate. Not 1.5%.Sean Dyche's Watch wrote: ↑Tue May 05, 2020 6:30 pmDo you mean BMR? This is a legacy rate, which guarantees to be not more than 2% above the Bank of England base rate.
I'm on this, and have been since 2013. I've resisted several attempts by Nationwide to lure me onto a different deal. I know that if I do this, I would not be able to go back to the BMR when the deal ends, instead I would revert to the higher SMR rate.
Re: Mortgage holiday
Ok....thanks.Jakubclaret wrote: ↑Tue May 05, 2020 8:56 pmIf you are tentatively embarking upon the first rung as a FTB you tend to run with what the MA endorses usually at a favourable broker fee not necessarily the fixed deal advantageous to the current financial circumstances
Again not sure why that is a response to my post advising what SVR is.
-
- Posts: 9474
- Joined: Sun Oct 16, 2016 10:47 pm
- Been Liked: 1185 times
- Has Liked: 779 times
Re: Mortgage holiday
I think what is now called the BMR used to be the SVR, but was replaced by Nationwide around when interest rates fell.TVC15 wrote: ↑Tue May 05, 2020 7:36 pmSorry not sure what you are pointing out.
SVR is the generic industry term used in most banks and building societies for their standard variable rate mortgage - ie their normal one of you don’t select one of their fixed products, or trackers or first time buyer ones etc
As an aside, back around 2000 one bank was offering a 25 year 6% fixed rate, which could have been attractive to those who recalled people struggling with high interest rates back in the ‘80s.
Re: Mortgage holiday
Ok - tbf it’s historically a very complicated market. And partly this is the fault of the lenders who have historically made their products deliberately complicated and on top of this you have the various mergers and takeovers in the market with a whole raft of legacy products.Jakubclaret wrote: ↑Tue May 05, 2020 9:05 pmJust a insightful overview of certain peoples knowledge or maybe lack of!
This is actually an area the regulator has cleaned up a lot so they can’t get away with as much but it’s still pretty confusing for customers.
-
- Posts: 1450
- Joined: Sat Feb 11, 2017 12:45 pm
- Been Liked: 664 times
- Has Liked: 379 times
Re: Mortgage holiday
Why does anyone want to take their mortgage on holiday?
-
- Posts: 3979
- Joined: Mon May 28, 2018 3:00 pm
- Been Liked: 1857 times
- Has Liked: 652 times
Re: Mortgage holiday
My line of work is IT, hence this question: I know that we currently have historically low interest rates, however, surely interest rates will go up if we continue to print money at the current rate? If not, will money become devalued by inflation?
Is there also a danger that govt bonds also become devalued, making govt borrowing more expensive or will this be like the quantitative easing we had for over a decade?
Is there also a danger that govt bonds also become devalued, making govt borrowing more expensive or will this be like the quantitative easing we had for over a decade?
-
- Posts: 9474
- Joined: Sun Oct 16, 2016 10:47 pm
- Been Liked: 1185 times
- Has Liked: 779 times
Re: Mortgage holiday
The devil's in the detail, still doesn't excuse your naivety, you think that's complicated, good night time reading material scrunitise the small print in critical life & illness cover & analyse the merits of the claims & the evidence required.TVC15 wrote: ↑Tue May 05, 2020 9:11 pmOk - tbf it’s historically a very complicated market. And partly this is the fault of the lenders who have historically made their products deliberately complicated and on top of this you have the various mergers and takeovers in the market with a whole raft of legacy products.
This is actually an area the regulator has cleaned up a lot so they can’t get away with as much but it’s still pretty confusing for customers.
Re: Mortgage holiday
I meant complicated in terms of the number of mortgage products and the old tricks they used to get up to of renaming products, offering better deals to new customers etc.Jakubclaret wrote: ↑Tue May 05, 2020 9:40 pmThe devil's in the detail, still doesn't excuse your naivety, you think that's complicated, good night time reading material scrunitise the small print in critical life & illness cover & analyse the merits of the claims & the evidence required.
Some of the bigger banks will have literally hundreds and probably thousands of different legacy products. For savings it’s even worse than mortgages.
-
- Posts: 1798
- Joined: Thu Jan 21, 2016 3:42 pm
- Been Liked: 662 times
- Has Liked: 1220 times
Re: Mortgage holiday
I was lucky enough to switch to a lifetime tracker in 2007 which is 0.17% above the base rate. It has saved me a fortune over the years!
This user liked this post: paulatky
Re: Mortgage holiday
Now that’s a cracking deal !!PaintYorkClaretnBlue wrote: ↑Tue May 05, 2020 9:48 pmI was lucky enough to switch to a lifetime tracker in 2007 which is 0.17% above the base rate. It has saved me a fortune over the years!
-
- Posts: 1798
- Joined: Thu Jan 21, 2016 3:42 pm
- Been Liked: 662 times
- Has Liked: 1220 times
-
- Posts: 10171
- Joined: Mon Apr 09, 2018 1:59 pm
- Been Liked: 4188 times
- Has Liked: 57 times
Re: Mortgage holiday
Volvoclaret wrote: ↑Tue May 05, 2020 9:17 pmWhy does anyone want to take their mortgage on holiday?
Cheaper than the mrs
Takes less shoes on holiday
Makes less noise
Doesn't nag
These 3 users liked this post: Anonymous Volvoclaret NewClaret
Re: Mortgage holiday
In this week’s Martin Lewis update he warns about taking mortgage holiday affecting people’s future mortgage applications.
Something I warned about 2 weeks ago !!!
Something I warned about 2 weeks ago !!!
-
- Posts: 13509
- Joined: Tue Dec 31, 2019 9:51 am
- Been Liked: 3114 times
- Has Liked: 3833 times
Re: Mortgage holiday
Think the mire we’re going to be in will keep interest rates very low for years. Saw some media commentary today suggesting negative interest rates were about to become a thing. How that works, I’ll never know.Billy Balfour wrote: ↑Tue May 05, 2020 9:29 pmMy line of work is IT, hence this question: I know that we currently have historically low interest rates, however, surely interest rates will go up if we continue to print money at the current rate? If not, will money become devalued by inflation?
Is there also a danger that govt bonds also become devalued, making govt borrowing more expensive or will this be like the quantitative easing we had for over a decade?
Re: Mortgage holiday
You would be paid to borrow money so that you would spend to keep the economy going is the idea I guess.
Similar to the oil price going negative at the end of last month. Will no doubt do the same for a few days at the end of this month also.
We have certainly never seen times like this before
-
- Posts: 7406
- Joined: Sun Apr 08, 2018 2:19 am
- Been Liked: 2310 times
- Has Liked: 2174 times
Re: Mortgage holiday
If people need to do it they absolutely should though, we need to concentrate on the present moment, unfortunately that's what's important at the minute. (Whilst I do understand your message)
-
- Posts: 10171
- Joined: Mon Apr 09, 2018 1:59 pm
- Been Liked: 4188 times
- Has Liked: 57 times
Re: Mortgage holiday
Does it really matter. Its the message that’s important not the messenger. Hope someone benefitted from the advice.
-
- Posts: 10171
- Joined: Mon Apr 09, 2018 1:59 pm
- Been Liked: 4188 times
- Has Liked: 57 times
Re: Mortgage holiday
Of course it matters because you have just claimed you said it. Now if it was your wife who said it then technically you are making a false claim, unless you are your wife too.
Re: Mortgage holiday
Indeed should only be done as a last resort.Burnley1989 wrote: ↑Wed May 20, 2020 7:55 amIf people need to do it they absolutely should though, we need to concentrate on the present moment, unfortunately that's what's important at the minute. (Whilst I do understand your message)
Like a lot of things , some people are doing it “just because they can”
-
- Posts: 4405
- Joined: Thu Jan 21, 2016 8:43 am
- Been Liked: 1467 times
- Has Liked: 997 times
- Location: Burnley
Re: Mortgage holiday
Surely you would still make repayments only you would ultimately pay back slightly less than you borrowed?paulatky wrote: ↑Wed May 20, 2020 7:49 amYou would be paid to borrow money so that you would spend to keep the economy going is the idea I guess.
Similar to the oil price going negative at the end of last month. Will no doubt do the same for a few days at the end of this month also.
We have certainly never seen times like this before