[Finance] Mortgage Holiday

[Weststander]

Buy-to-lets are generally interest only as the landland does not need the property as their residence, so you don't normally have a repayment with a buy-to-let.

So a mortgage holiday for a buy-to-let who is paying off the interest only per month and not touching the capital, should just be extending the period of the mortgage which will go on 3 months longer paying the interest (which if a fixed product will be the same).

If the rent is therefore more than covering the mortgage, there shouldn't really be any cost to the landland for doing this, so should be able to pass on that 3 month holiday to their tenant.

In these touch unprecedented unpredictable times, I doubt there are too many landlords out there wanting their properties going empty right now. Of course some are absolute ********s, but I suspect many will take a pragmatic view of keeping a good tenant in and making if easy for them to do so.

Definitely worth chatting to them about it. I've heard of quite a few cases of landlords actually contacting tenants and offering them this option, or discussing their situation to ensure a good tenant is retained.

Tenants can also get access (once they can get through) to Universal Credit, backdated. Worth pursuing, if hit by financial/income bad news.

 

[Triggaaar]

It's me again moaning about finance.
I've been offered a mortgage holiday by Natwest but the cost of it is astronomical.
Basics. 2y 4m left of mortgage.
Paying £1480.31 month.
If I take a three month holiday the new monthly cost is £1724.45. An increase of £244.14 a month or a cost of £6103.50 over two years one month.
Put another way.
I'm not paying £4440.93 (3 x £1480.31). The cost of paying back £4440.93 over two years and one month is £6103.50 now take one from the other leaves £1662.57 interest on a £4440.93 loan payable over 2 years 1 month.

That's criminal.

Just pay the whole lot off now and damn their impudence.

 

[LamieRobertson]

Yep that's what I got from Nationwide.

Made all the sweeter by the fact I'm a 'key worker' so still earning.

Locksmith?