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If you have a mortgage and will struggle to make the repayments ........

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Comments

  • floydroadfaithfull
    floydroadfaithfull Posts: 4,778
    Remember banks do nothing for free
    You will pay more in the end
  • Covered End
    Covered End Posts: 52,090
    edited March 2020
    floydroadfaithfull said:
    Remember banks do nothing for free
    You will pay more in the end
    Paying a bit more over an extended time period, is preferable to being homeless.
  • Saga Lout
    Saga Lout Posts: 6,845
    Addickted said:
    I doubt very much that buy to let mortgages will be offered this payment holiday and quite rightly so.
    I hope you are wrong because, in my case, 3 tenants not paying rent on the 3 properties I own for 3 months will likely bankrupt me if i have to keep paying the mortgages.

    I regard myself as an ethical landlord and I would not seek to evict tenants who temporarily were unable to pay rent due to COVID-19.
  • Dazzler21
    Dazzler21 Posts: 51,460
    Oggy Red said:
    Mortgage payment holidays are never 'free'.

    Normally the amount of the missed payments will be added on to the sum outstanding and accrue further interest.

    Which means afterwards your monthly mortgage payments will increase - or, in some cases, your mortgage period will be extended.
     It should be extended at least by the amount of months you're not paying or do you mean on top of this?
  • Oggy Red
    Oggy Red Posts: 44,979
    Dazzler21 said:
    Oggy Red said:
    Mortgage payment holidays are never 'free'.

    Normally the amount of the missed payments will be added on to the sum outstanding and accrue further interest.

    Which means afterwards your monthly mortgage payments will increase - or, in some cases, your mortgage period will be extended.
     It should be extended at least by the amount of months you're not paying or do you mean on top of this?
    The amount of the 'holiday'/missed payments will be added to the sum still owed - and you'll incur interest on the total.

    Many borrowers might have a choice of increased/extra payments (best idea to keep the redemption date the same) or extending until finally paid off.

    Some lenders won't extend the length of mortgage, though - which means, you'll have your mortgage payments increased but redemption date will stay the same.


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