- 25th March 2020
- Posted by: Mark
- Category: advice
Following on from our mortgage payment holiday article explaining how to apply for a mortgage payment holiday. This article explains if you can switch mortgage deals while on the mortgage payment holiday.
Due to the current situation with the Coronavirus mortgage lenders are offering a break from paying your mortgage for up to 3 months.
During this time some will be looking to switch to a better deal, but can you switch if you have already taken the mortgage payment holiday.
Nationwide Will Not Allow You To Switch if You Are On A Mortgage Holiday
Nationwide Building Society have announced you will NOT be able to switch to another product in their range during the repayment holiday. You can find out more on their website https://www.nationwide.co.uk/support/coronavirus/mortgage-payment-holiday
They recommend you switch prior to taking the repayment holiday. Whether this will become the stance across lenders remains to be seen.
Given Nationwide are advising you clearly to switch products prior to taking the payment holiday, the opportunity to take advantage a of a better deal remains.
Nationwide Building Society have also just brought back it’s range of 2 year residential tracker mortgages. The range of mortgages will go live on the 25th of March. Home and first time buyer products start with a rate of 1.39%, with remortgages starting from 1.19%. If you are with Nationwide it may well be worth looking at these deals prior to taking your break on payments.
Speak To Your Lender To Get Clarity
Every lender will be different, if you are looking to remortgage soon, we’d recommend speaking to your existing lender first. Ask if you take the mortgage payment holiday if it would affect your ability to switch mortgages to a better deal.
With such a dynamic situation there will be many changes happening.
If you have just taken out a new deal, much of this will not apply to you as you will currently be in a position to switch mortgages. However if you have been tempted by some of the low rates available, it’s best to get clarity from your existing lender where you stand.
Finally stay safe and follow all Government advice regarding social distancing and cleaning your hands. Go out as little as possible and only for essentials such as shopping.