MONDAY TIP

IS YOUR PAYMENT HOLIDAY COMING TO AN END?

?Due to coronavirus this has affected many of us financially and for peace of mind have taken advantage of the payment holiday with our mortgage lenders. Depending when you took this out, some of you may be coming to the end of your 3 months and wondering what to do next?

Your lender will be contacting you directly if they have not already to confirm how you wish to proceed and you will be given a few options depending on your needs and circumstances:

AGREE TO START PAYING YOUR MORTGAGE AGAIN

Are you coming off furlough at the end of this month and going back to work? if so agree to start paying your mortgage again. As agreed at the start of the mortgage your monthly payment will increase to cover the 3 months that you did not pay, and you will continue with your deal you have in place

AN EXTENSION TO YOUR HOLIDAY PAYMENT FOR ANOTHER 3 MONTHSI would only take this option IF you have not gone back to work and are still furloughed. Your Circumstances have not changed and still a financial struggle to pay your monthly payments. This would mean in total you are deferring 6 months mortgage payments and at the end of this your monthly payment would increase again once you start paying this back.

A PART PAYMENT HOLIDAY

Meaning you could start paying half of the monthly mortgage payment for another 3 months, rather than nothing at all. This would help you when it comes to paying your mortgage again as your monthly payment would still increase but not as much, as if you were not paying anything at all. This option could be considered, if you are still furloughed but realised in the last 3 months your monthly spending has been minimal due to lockdown and could afford to pay half of your monthly mortgage payment

MAKING A LUMP SUM OVERPAYMENT OR SETTING UP REGULAR OVERPAYMENTS

You may not be able to pay half of your monthly mortgage payment, however you have saved some money to pay a lump sum of the 3 months you have put on hold OR there may be an option to set up regular payments to reduce your future monthly payments, so that you are back on track when you come to paying your regular monthly payment again.

All the above are subject to lenders discretion as each could vary, this is only a guideline in case you are wondering what to do and you should speak to your lender directly for the guidance.

I hope the above helps, if you require any help or want to discuss this you should speak to a mortgage broker or feel free to message me #paymentholiday #covid19 #mortgagebroker #heretohelp #homeiswheretheheartis #allyouneedmortgagesMONDAY