Mortgage Break Advice

andymb · 10 May 2010 at 1:16PM

I have a mortgage with C & G which is fixed until Dec 2011 at 5.45%. We are paying all our bills at the moment but things are very tight. Im thinking of taking a mortgage break for 6 months which will save me £980 a month and use this to pay off some credit cards (low lifetime balance) and also make day to day living a bit easier. C & G will charge me a £99 admin fee and also I will incur aprox £3500 in interest which will incur interest for the rest of the term (17 years). But on the plus side it will give me 6 months off paying interest at 5.45%.

Im pretty sure its the right thing to do but would welcome any comments or advice.

Thrugelmir · 10 May 2010 at 1:51PM

Have you asked the C&G if they will allow you to take a mortgage holiday yet?

andymb · 10 May 2010 at 2:08PM

Hi, I phoned them before I left this morning and they explaned the fees and process, I need to actually apply to get a deccision, my credit rating is good with no missed payments and we have aprox £90k value in the property.

beecher2 · 10 May 2010 at 2:14PM

Could you post a Statement of affairs on the Debt Free Wannabee forum to see if there are ways for you to save money without going into authorised arrears? If you're using it partly to make day to day living easier, what will you do when the 6 months is up? I'd think it was better to change the spending patterns instead and the DFW people can help you with that.