Coronavirus Mortgage Holiday Question

15
Posted 8th Jul 2020
Hi Guys

I’m going to contact Nationwide my mortgage provider in the morning but asking a quick question in here for the ones in the know.

During Coronavirus my wife has been on 80 percent pay and myself I’ve been on full pay working but all overtime work has stopped.

We are considering asking Nationwide if we can take the 3 month break (if allowed).

It’s mainly to ease things for us on a precautionary basis, we could continue to pay as normal - but I’m just worried if my understanding of it all is correct.

Would it just be a straight forward case of you stop paying the normal fixed amount for 3 months, then carry off as normal 3 months later and continue paying the same amount but would have to pay 3 months longer than originally agreed?
Or would your monthly amount go up on the term you had outstanding due to interest accrued?

Our monthly payments are currently £575.

Thanks
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Thanks guys - the response is crystal clear.
Thanks for your valuable info I will not be taking the payment holiday.

I genuinely thought it was just a case of pause it for 3 months then just pay 3 months longer at the end - that’s clearly not the case.

We will carry on paying as normal and thanks again all.
nick198108/07/2020 22:18

For what reason?



Because you would be increasing debt for no reason whatsoever.
15 Comments
Your monthly payment will increase after the holiday.

The £1725 (plus any Interest as that continues to accrue) will be spread out over your remaining monthly repayments.
Thank you for that, I wasn’t aware.

I will ask Nationwide if they can give an indication as to what the new payments will be 3 months down the line.... then determine whether to do it or not.
Thanks again
"precautionary basis"

Only do it if you have to.
avoid doing it if you can, really avoid.
AMaky08/07/2020 22:17

avoid doing it if you can, really avoid.


For what reason?
nick198108/07/2020 22:18

For what reason?



Because you would be increasing debt for no reason whatsoever.
The 3 month payment say it’s £1500 will be a lot more in the long run , if there’s 30 yards left that’s 30 years interest on £1500 .

Also when you try to get a Loan or another mortgage in the future you interest rate will be higher
Edited by: "ashmac" 8th Jul
I also believe you're only allowed one mortgage holiday so if in the future you ever genuinely need it you might not get one which would cause serious issues.
Seriously. If you don’t need to, really don’t take a holiday. Not only will payments go up but you will be seen as greater risk in future and as previously stated, one day you might really need the payment holiday but you won’t be able to as you took it now, as a precautionary measure.
Don't do it if you don't need to. It could easily come back and bite you and also whatever term you have left you'll be paying interest on the equivalent of 3 months payments for that length of time. As you can see everybody is saying the same thing. Please don't be naive and ignore the advice
Edited by: "MonkeyMan90" 8th Jul
Thanks guys - the response is crystal clear.
Thanks for your valuable info I will not be taking the payment holiday.

I genuinely thought it was just a case of pause it for 3 months then just pay 3 months longer at the end - that’s clearly not the case.

We will carry on paying as normal and thanks again all.
nick198109/07/2020 00:24

Thanks guys - the response is crystal clear. Thanks for your valuable info …Thanks guys - the response is crystal clear. Thanks for your valuable info I will not be taking the payment holiday.I genuinely thought it was just a case of pause it for 3 months then just pay 3 months longer at the end - that’s clearly not the case.We will carry on paying as normal and thanks again all.



And any extra money then pay off credit cards or overdrafts. Best of luck.
I have done this for 3 months and just extended for another 3 months however what I have done is pay the interest that has accrued each month as an overpayment, at the end of the first 3 months the later stated my payments world be £2 more each month then what I would normally pay
shef007209/07/2020 09:02

I have done this for 3 months and just extended for another 3 months …I have done this for 3 months and just extended for another 3 months however what I have done is pay the interest that has accrued each month as an overpayment, at the end of the first 3 months the later stated my payments world be £2 more each month then what I would normally pay


You’re still paying extra interest on the capital you haven’t paid down though.
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