For most people, the largest single personal item of expenditure each month is their monthly mortgage payment.
During these uncertain times as a result of COVID19 and the knock on impact on monthly income, one short term solution that can be very helpful is to consider a Mortgage Repayment holiday.
A payment holiday gives you some flexibility in repaying your mortgage by allowing you to stop or reduce your monthly payments. This is subject to approval and eligibility with each lender. Do not change your Mortgage direct debit.
If you have the payment holiday feature and meet the criteria with your lender, the monthly repayments will be recalculated at the end of the payment holiday and may increase. It is really important to know that although you may miss payments due to the payment holiday, you will still have interest added to your mortgage.
This wont affect your credit file, if applied in the correct way with the lender and they confirm you are eligible.
For more information, please contact Wagner & Gibbs – Mortgage Advice Bureau if you want any help or advice – 0330 1355 325 to speak to adviser.