Back in the blur of the COVID-19 conditions and economy, it’s possible you asked for – and received – a mortgage reprieve.
No one quite knew at the time, even lenders as they issued them, but the home-loan holidays ended up being exactly that: straight-up repayment waivers with your loan term simply extended for the ‘slippage’.
To get loan help over the line explain how you intend to turn your circumstances around and understand that nothing – ever – is freeCredit: Peter Riches
Today, you can forget about pandemic-level mortgage breaks – but you can still get vital breathing space. And it seems lenders concede, and the National Debt Helpline confirms, that tens of thousands of borrowers are doing just that.
Here are the five things you need to know to both secure a new-look home-loan holiday and make sure it helps not hinders you:
1. Most lenders are, mostly, offering a maximum three-month repayment pause. Like in COVID-19, they are fairly readily granting these. But in 2020, there was a possible three months and then, if you were still in trouble, potentially more months on top.
Now, falling further than 90 days into arrears in dollar terms – even if your lender agrees to it – could actually get you into trouble. Those arrears could be three months of paying nothing or, say, six months of making half your required minimum repayment.
New-look home-loan holidays are intended to get people through a temporary bad patch with a little breathing space.
What is the trouble of which I type? At an effective 90 days, your lender could then turn around and require you to pay back every bit you are behind. And fast – even over a matter of months. The issue is this:
2. Nowadays, at the end of a hardship arrangement, your repayments will go up to make up for it. This is to pay off the extra you owe after any hardship arrangement finishes because most lenders are no longer extending loans.
How to get a bit of breathing space on your home loan
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19.04.2024
Back in the blur of the COVID-19 conditions and economy, it’s possible you asked for – and received – a mortgage reprieve.
No one quite knew at the time, even lenders as they issued them, but the home-loan holidays ended up being exactly that: straight-up repayment waivers with your loan term simply extended for the ‘slippage’.
To get loan help over the line explain how you intend to turn your circumstances around and understand that nothing – ever – is freeCredit: Peter........
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