Should I take a holiday?

mikh

I have a fixed-rate mortgage with the Halifax, on a 2-year deal at 5.7%, expiring in November 09. It reverts to their standard variable rate after that (currently 4%).

Under the terms and conditions, I'm allowed to ask for a payment holiday, for up to 6 months. If I ask them to start the holiday in June, would I still bump down to the lower variable rate in November when it ends, or would they effectively extend the fixed rate period and make me pay 5.7% for 6 more months?

Grateful for a steer on this please, as I'm in financial difficulties and it could make a huge difference to my situation.

Cheers, M.

kazd

I think possibly it would be calculated into your balance should you wish to redeem and mortgage elsewhere. I think the same would apply if you choose to stay with them.

Gorgeous_George

The interest that you would not be paying during the holiday (at 5.7%) would be added to your mortgage debt. I certainly would not be taking a payment holiday (that a nice name for missing payments).

GG