How far back will 6 months of payment holidays take me?!

Hi guys,

I need someone with a good head for figures!

  • My mortgage has £90,000 left on it.
  • I pay £570 a month capital and interest.
  • My fixed 5 year interest rate of 4.99% runs out in February next year - at which point I will change to the best fixed option available at the time.
  • I have built up 6 months of Payment holidays which I havn't used.
  • Due to unforseen circumstances I need money urgently, my options are a loan or using my payment holidays.


Where is the downside to what i'm planning here?

PLAN 1 DON'T take the payment holidays
£90,000 - (x6 payments @ £570 = £3420) = £86,580 (+ interest of 4.99% to this? would be nice to know how to work this out :o)

Plan 1 would give me a remortgage figure of £88,880 (i think 6 months of interest is usually £2300)

PLAN 2 TAKE payment holidays

£90,000 - (no payments made) + interest of 4.99%?

Plan 2 would give me a remortgage figure of £92300 (same guess at £2300 6 months interest)

I'm very confused please enlighten me! :money:

Replies

  • The question, I guess, is which would be cheaper. Can you get a loan under the rate of your mortgage? Unlikely! Even 'very good' loans start around 7% and go quickly higher from there. If you do go the loan route, make sure there's no early repayment fee.
    Starting Debt: ~£20,000 01/01/2009. DFD: 20/11/2009 :j
    Do something amazing. GIVE BLOOD.
  • dimbo61dimbo61 Forumite
    12.4K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    ✭✭✭✭✭
    " I have built up 6 months of payment holidays which i have not used"
    Do you mean you have overpaid over the last 4 1/2 yaers by 6 months of payments?
    How much equity have you built up in your property ?
    Are your lenders happy to give you a 6 months " holiday" break from your mortgage ?
    Will this count on your credit file when you come to remortgage?
    You need money urgently !!! What no savings to fall back on !
    Could you go interest only for 6 months ?
    You need to call your lender and ask GOOD LUCK
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