payment holiday to pay a lump sum off

hi,

I am trying like everyone to get my mortgage paid off as soon as possible.

I know most mortgages are different but also have a lot of similar in mnay ways as well.

i was wondering if i take a payment holiday for 6 months (which is the longest i can take at once) then pay a lump sum off would it be better for me as usually when i pay a lump sum then it goes all to repayment.

I am on a repayment mortgage and have got 25 yrs left on it.

Thanks
Blessed on 18th February 2014 at 0814 with little Sarah xxx

Replies

  • You are aware the interest will still be charged each month to the amount you owe, increasing it to a higher amount that in month 2 will accrue even more interest, and so on till month 6? Just be aware of this should you decide to take the holiday payment. If you only need to reduce the amount you are paying for personal reasons, then how about during this 6 month payment "holiday", you still make a small payment each month to avoid the interest rolling up into a large amount in 6 months time?

    Think carefully about this.
    "Click the pennies. Collect the pounds."
  • JonbvnJonbvn Forumite
    5.6K Posts
    Part of the Furniture 1,000 Posts
    Forumite
    Sorry OP, but your idea will lose you money, since interest will accrue during the payment holiday.
    In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:
  • 1trainer11trainer1 Forumite
    1K Posts
    Part of the Furniture 500 Posts Name Dropper
    Forumite
    thanks,

    i was trying to think that i had found a crafty( maybe sneaky) way of saving myself a few hundered pounds that noone had thought of...

    but alas just got to keep on going
    Blessed on 18th February 2014 at 0814 with little Sarah xxx
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