You can stiil apply for a mortgage payment holiday, should you need to, until 31st March 2021. Here’s what you need to know:

• You will still accrue interest on your mortgage during a payment holiday. This means that overall, it is likely that you will end up paying more – so only take a payment holiday if you really need to.
• The deadline for mortgage payment holiday requests is 31st March 2021.
• All payment holidays must have ended by 31st July 2021.
• If you haven’t yet had a mortgage payment holiday, you can request up to a three-month break from payments – but you must apply before 31st March.
• If you’ve already had a three-month payment holiday, you can still apply for a further three months – but you must apply by 31st March.
• If you are currently taking your first mortgage payment holiday finishes after 31st March, you may still request to extend it. You cannot extend the payment holiday beyond 31st July.
• If you have already had six months’ of mortgage payment holidays, but find that you still need support, your lender should arrange ‘tailored support’ for you.
• While your first six months of payment holiday are not shown as missed payments on your credit file, lenders are still able to find out about them (i.e., by looking at your bank records or outstanding mortgage value) – so it may still affect future credit applications.

Here to help

We’re passionate about what we do, we’re trusted experts, and we’re here to help if you’ve any questions. After all, we’re all in this together. Email us at info@stisi.co.uk or call us on 0131 510 1240.

Update: November 2020

Mortgage payment holiday schemes have recently been extended by the UK Government. Here’s what you need to know:

• The deadline for mortgage payment holiday requests has been extended until 31st January 2021
• You can request a three-month break from payments, with the option to extend this for a further three months, if needed.
• If you’ve already had, or are currently taking, a three-month payment holiday you can still apply for a further three months.
• If you have already had six months’ of mortgage payment holidays, but find that you still need support, your lender should arrange ‘tailored support’ for you.
• While your first six months of payment holiday are not shown as missed payments on your credit file, lenders are still able to find out about them (i.e., by looking at your bank records or outstanding mortgage value) – so it may still affect future credit applications.

May 2020

Is a mortgage payment holiday a good idea? The UK Government is supporting UK mortgage holders with mortgage payment holidays – but is it the right option for you?

Watch as our Bearded Broker Ross Stisi considers the good, the bad and the ugly in this two-minute taster video, so you can make an informed decision. If you’d rather read, just scroll down!

Is a mortgage payment holiday right for you?

The good

Yes, the good is pretty obvious – you won’t have to pay any mortgage payments. The payment holiday window is three months, during this intense period of COVID-19 lockdown. Many people have had their income reduced, perhaps through being furloughed or having reduced working hours – or worse. A three-month mortgage payment holiday could really help to lift some of the pressure.

The UK Government is backing the availability of payment holidays. This means that there is no penalty or credit rating impact should you choose to apply.

The bad

Unfortunately, you can’t have the good without the bad. If you take a mortgage payment holiday you have a three month window in which you don’t have to pay any mortgage payments. Your lender will take those three payments and add them on to the debt of your mortgage. This means that your on-going monthly payments will increase slightly. 

This increase will be determined by two factors – the balance of your mortgage, and the remaining term on your mortgage. The greater the balance and the shorter the term, the greater the monthly payment increase. Make sure to discuss this with your lender, so you have a clear understanding of your monthly payments after a payment holiday.

The ugly

While a three-month mortgage payment holiday can really help your short-term financial situation, having to restart payments – and at an increased amount – might feel pretty ugly. But, if you need to take off the financial pressure right now and you can afford the subsequent increased monthly payments then a mortgage payment holiday can be of real financial benefit.

The verdict?

We wouldn’t recommend taking a mortgage payment holiday if you don’t absolutely need it. If you can manage right now then it could be an option that you keep in reserve, for whatever’s round the corner. However, if a payment holiday is going to make the difference for you right now, and you use it appropriately, then it’s definitely an option for serious consideration.

How do you arrange a mortgage payment holiday?

If you decide that this is the right move for you, or if you just want to find out more, all you need to do is contact your lender. Most lenders now have specific COVID-19 support pages on their websites, and many have set up online applications. Not sure how to contact your lender? An internet search of your lender’s name, ‘payment holiday’ and ‘COVID-19’ should help.

Here to help

We’re passionate about what we do, we’re trusted experts, and we’re here to help if you’ve any questions. After all, we’re all in this together. Email us at info@stisi.co.uk or call us on 0131 510 1240.

Are you wondering – is now a good time to remortgage? This is something else we’re being asked a lot just now.

Stisi Group MD Ross has made a Two Minute Taster video in order to give you some points about switching to a new deal. Is now a good time to switch? Would it be a good finiancial decision? Watch and then make an informed decision:

“It doesn’t cost you a penny to have a look to see if it will be worthwhile.

Mortgage lenders have the cheapest rates available that I have ever seen”

Ross Stisi – Stisi Group Managing Director

Is now a good time to remortgage? Some key points

Interest rates are currently as low as they have ever been. They could well be the lowest we’ll ever see them.

Whether you’re on a fixed rate, tracker or variable rate mortgage, it is definitely worth having a look at the options currently available. Remember, it doesn’t cost you anything to look. A financial adviser will be able to show you the deals on the market which would be right for you and your circumstances. With the current low interest rates, it’s likely you could move on to a better deal.

Coming to the end of a fixed rate period? If so, it absolutely makes sense to take advantage of the current low interest rates.

Locked into a fixed rate period for a while yet? In this case, there may be an early repayment charge if you change mortgage. However, given some of the deals to be had just now, it may still be worth finding out what’s on offer to you.

Stisi Group are here to help

Our team at Stisi Group are friendly and professional, and trusted protection experts – get in touch if you’d like to ask any questions, chat through the options available to you or book a free appointment. You can call us on 0131 510 1240 or email info@stisi.co.uk.

You can see all of Ross’s video guides on our YouTube channel – be sure to subscribe!

Income Protection Insurance – it’s something that we’re being asked about a lot just now. But, do you know what it is, and more importantly, if you need it?

In this Two Minute Taster video our MD Ross Stisi gives you the basics, so you can make an informed decision. Take a look, and then see below for some key points.

Income Protection is absolutely the most important insurance that you should have.

Everything that you pay for every single month out of your bank account is underpinned by the income going into it in the first place.

Ross Stisi – Stisi Group Managing Director

Income Protection Insurance – at a glance

What is income protection insurance and who can apply?

• This insurance provides regular monthly payments if you’re unable to work due to illness, injury or disability

• Policies are typically over a long term, with payments usually made until either your return to work, retirement or – if before retirement age – death. Some providers do offer shorter term policies; these have a term of one or two years and have lower premiums.

• Anyone over the age of 18 who is working for an income can apply for income protection insurance. Providers do not usually accept applications beyond retirement age.

How much does it cost – and how much will it pay out?

• Premiums are determined by numerous elements particular to the individual applicant and to the details of their policy. These include personal factors and your job or type of work.

• Payments will generally be 50% to 70% of your gross salary. Some providers offer policies which offer a higher percentage on a set amount of your earnings and lower percentage on the remainder.

• Payments from an income protection policy are income tax free, however policy payments may affect any benefits that are calculated on your regular income.

• Index-linked income protection insurance policies rise each year with a measure of inflation – this could be the retail prices index (RPI) or consumer prices index (CPI). This is worth considering, as any payments you receive will be a percentage of your income at the time of taking out the policy.

When will a policy pay out?

• Income protection insurance covers most illnesses or injuries that leave you unable to work. Make sure to check for any exceptions when comparing policies, particularly if you are looking for cover for COVID-19 or an injury specific to your type of work.

• All policies have a deferral period. This is usually either 4,8,13 or 26 weeks but can be as long as two years after you have submitted your claim to your insurer. The minimum period is four weeks. The longer the deferral period, the lower your premiums.

• How your insurance provider defines your inability to work will determine if your policy pays out, and when this will be. It’s important to consider this when comparing policies.

• There’s no cap on the number of times you can claim, as long as the policy is still in force. If you reach the end of your policy there is no pay-out, and it’s not possible to cash-in your policy at any time either.

Is income protection insurance the same as PPI or Critical Illness Cover?

No, these are three different types of insurance.

Is it really worth it?

Now you’ve watched the video and know the key points, take a look at our blog for an in-depth view. We ask – Income Protection Insurance: Is it really worth it?

We believe it’s really important to look for professional advice to work out which type of income protection is right for you and your needs. A financial adviser will be able to listen to you, help you determine the level and type of cover that is most appropriate for you, and then provide quotes from across the market.

Stisi Group are here to help

Our team at Stisi Group are friendly and professional, and trusted protection experts – get in touch if you’d like to ask any questions, chat through the options available to you or book a free appointment. You can call us on 0131 510 1240 or email info@stisi.co.uk.

You can see all of Ross’s video guides on our YouTube channel – be sure to subscribe!

Please take a minute to watch this beautiful message of hope and thanks, created by Stisi Group Directors, Ross and Emma.

The COVID-19 pandemic is like nothing we’ve experienced before in our lifetime – and while we may be in different boats, we’re all in this storm together. As a small family business we are aware of just how hard-hitting the effects of the current UK lockdown are. From the spread of the virus to our loved ones to the collapse in business and industry, there’s real reason for us to feel anxious, stressed or depressed. Ross and Emma wanted to share a message of hope for all of us, to help us through these times.

Everything has a beginning, a middle and an end

Ross firmly believes that everything in life has a beginning, a middle and an end. The start of the UK lockdown on 23rd March was the start of a new way of living for us. For many, it has been difficult to adjust. But, we will get through this, and it will end.

Please follow the guidelines set out by the UK and Scottish Governments, and stay at home. But, please also do your best to stay connected – to your family, your friends and colleagues. To all those who are key workers – in the NHS, carers, retail staff, farmers, refuse collectors, factory workers, posties, utility providers, and all the rest of you – a sincere thank you. You are all our heroes.

Ross said: “Having witnessed the decimation caused by COVID-19, day in and day out, I felt like I was part of history in the making. I wanted to document it from our family’s point of view. Having also seen on a daily basis the effect this was having on us human beings and our minds,  I wanted to try and create something that would give people a sense of hope into the future.”

“I truly believe everything in life has a start, middle and an end and I hopefully conveyed this in the video. I want people to watch this video and come away from it with a different perspective, and that feel there is hope on the horizon for us. We won’t come through this without a lot of damage done. But, each day we are a day closer to returning to something more ‘normal’. This time will end, and then together we can begin to recover.”

Ross Stisi – Stisi Group Managing Director

It’s OK not to be OK

We have seen how mental health is being affected by the coronovirus pandemic. It’s an anxious time for all of us, and in particular for those who were already suffering poor mental health. Please remember that it’s OK not to feel OK. If you need to talk to someone, there is help out there:

• Mental health helplines – support services: NHS list with contact details
• NHS mental health and wellbeing support
• Samaritans – support, advice and helpline

Stay safe and stay well – with love from our family to yours.

Ross and Team Stisi

Of course – you’d all like to know how to save thousands on your mortgage! As your mortgage broker, we have two responsibilities: the first is to find and secure the right mortgage for you. The second is to make sure you’re able to pay that mortgage debt off as quickly as possible.

Most people don’t realise that overpaying can reduce their interest by tens of thousands of pounds over their mortgage term. It only takes small but consistent overpayments.

Stisi Group Managing Director Ross Stisi has created this short video, to show you some simple calculations that illustrate the huge savings to be had.

Take a look, then calculate the savings that you could make!