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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk/
Tel: 0345 345 6788
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Question
Is it too late to take a mortgage holiday?
I work in the hospitality industry and have just found out I have been made redundant due to the pandemic. I contribute, with my partner, to half our mortgage repayments and, therefore, it looks like I will need to take a mortgage holiday while I look for another job.
I heard the holiday period had been extended but is this just for those already on ‘holidays’? Am I too late to apply or will my application for a break remain valid?
Answer
I am so sorry to hear about your job and I wish you luck with finding another.
The good news is that you can still apply for a mortgage payment holiday, even if you have not taken one thus far, so get in touch with your mortgage lender and they will advise on the next steps.
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Question
Mortgages for buyers with a 5% deposit
Do you know if there are any lenders still offering 95% mortgages?
My partner and I were hoping to buy our first home this year and we are becoming increasingly despairing as we have seen so many lenders pull products which we could have applied for?
Should we keep searching or put our plans on hold for a year or so?
Answer
At this moment in time, 95% mortgages are not available with the exception of shared ownership.
While this is not great news for you, there is a chance we will see these come back to the market at some point in the future, although this will depend on how the housing market and the wider economy perform.
My best guess is that if things stay relatively ok, we may see a 95% product by the end of the year. However, if the housing market and/or the economy goes into meltdown, it could be longer.
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Question
Overpaying – what are the consequences?
I am in the very fortunate position of having actually managed to save some money during the lockdown. I would like to use this cash to overpay on my mortgage.
Can I do this or will I face a penalty? I have looked into saving the cash but rates are so low that it makes more sense to pay off debt but would the penalty reduce the value of the overpayment?
Answer
Wow – good for you! I wish I could say the same… I squandered any savings on feeding two children who seemed to have bottomless stomachs!
The ability to make a reduction will depend on the terms and conditions of your mortgage – most mortgages allow some form of overpayment (10% of the mortgage balance is the most common) so you need to check your paperwork and see what it says.
If you do incur a charge for the overpayment then yes, essentially this would decrease the value of the overpayment.
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