Repayment Holiday - How does it affect getting a new loan

Hello All,

How easy is it to get a home loan after taking a repayment holiday?
What will bank look at for those who are potentially looking to get a new loan when:
** they have taken a repayment holiday?
** income not affected but repayment holiday taken as a way to accumulate some savings??
** which banks are currently open for that?

What would be your advice?

 

Too early to have any definitive answers to these questions, the banks are still spending a lot of time dealing with people in financial stress to have released anything significant about this.

I suspect that lenders will be understanding of those who have taken repayment holidays, but will be looking closely at their employment stability. They're going to want a lot of reassurance that you're not about to loose your job.

The banks' position is you shouldn't be taking a repayment holiday unless you're in financial stress. I don't imagine that they'd be too impressed by using it as a saving strategy. I don't imagine that this would be an immediate 'No' in itself, but it might be the thing that makes a difference if other elements aren't ideal.

 

If you've taken a repayment holiday, and you're still on a repayment holiday, and you're looking to increase the amount of credit you have then this will require justification & the application would need to be strong.

 

Thank you for your responses...

How long will one have to wait after the repayment holiday before they can apply for more credit?