Advent-ures in the MSE Forum... Our Advent calendar is live, helping you discover a new corner of the community each day. Visit the homepage and scroll down

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
    13.2K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    " 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
This discussion has been closed.
Latest MSE News and Guides

Is your local HSBC closing?

114 branches to shut in 2023

MSE News

Advent Competitions

The countdown is on

MSE Forum

Baileys £10 for 1L at Tesco

When you scan your Clubcard

MSE Deals