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Mortgage Payment Holiday

kirstiejayne Avatar
7y, 6m agoPosted 7 years, 6 months ago
Hi everyone, we are thinking about contacting our mortgage company to ask for a payment holiday. Has anyone had experience of this? does it affect your credit rating and do most companies offer them? Thanks!
kirstiejayne Avatar
7y, 6m agoPosted 7 years, 6 months ago

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I used a payment break before, when getting divorced. All I believe is that it is added on to the end of the mortgage. If it difficulties its always best to speak to the mortgage lender for there advice.
You will need to check the terms of your initial product. This will not affect your credit rating as its something the lender can arrange.

They will check that you have been paying your mortgage for a certain length of time and also if you are up to date. They can refuse too many requests for a payment holiday in a certain period of time.

Just remember that it will be added on to the end of your term. You will need to calculate this.
some companies add 1 extra payment, others add the missing payment to the total borrowing, the latter would cost you a lot more (interest)
Ive never had experience of this but I believe its very specific to each mortgage, not all mortgage companies do it. When you took out the mortgage did they tell you that the option of taking a mortgage holiday was there? if it wasn't in your terms and conditions I don't think you'll be able to do it?
did this for 3 months starting june last year when my partner was made redundant and when your normal payments start again you have to pay the payment back over like the next 3 months to catch up which was a hell of alot so we asked about going interest only for 6 months and they told us that when the payments go back to normal it would be added to each month over a 12 month period so i have now kept my repayment as its just not worth it.
Well our mortgage is interest only anyway, so not sure if that affects it at all?
Well our mortgage is interest only anyway, so not sure if that affects it at all?

the extra interest payments will be added when it returns to normal what you need to look at like we did is if you cannot afford the payments now then are you going to be able to afford them with the extra added on also some morgage companys charge you a fee for having the break would be best to give them a ring and have a talk with them.
I did something like this when I was made redundant back in 2007, rang Natwest and told them the situation and they agreed to spread the next payment over 6 months to help me out.

What they didn't tell me was that this is classed as deferment on your mortgage and puts a black mark on your credit rating for the next 12 months, sadly theres no way to take a payment break without any consequences.
depends on the lender and the terms of your mortgage, some do allow payment holidays but the interest afterwards will be higher as your loan has stayed higher by the amount of the deferred payments,

make sure you get it in writing before agreeing so you dont get told one thing with different consequences as the last poster mentioned
Well our mortgage is interest only anyway, so not sure if that affects it at all?

oof! interest only? how you planning on paying it off, man thats a lot of money just being wasted every month :w00t:

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