Northern Rock Assest Management - Payment Holiday

Debs0778

Hi All

Does anybody know if NRAM still offer payment holidays or is this also classed as additional borrowing?

Just after some info - anyone had one, how does it affect the mortgage

skinnybowler

I have a mortgage with NRAM. It is my understanding from what I read that Payment Holidays will continue to be available (1 month for every 9 consecutive full payments up to a maximum of 3 after 27 full payments).

I have taken a mortgage holiday in the past (before NR split) and it is important to remember that when you are on a payment holiday, interesrt continues to be added and therefore, after the payment holiday, the monthly payments increase. In my case, my payment went up from about £755 to £780 after a 1 month payment holiday.

If you have made an overpayment in the past, you can use this to reduce your payment (even to zero). However, this means that that month's payment is not considered a "full payment" and so you will need to wait another 9 months before you can take a payment holiday.

Debs0778

Thanks, looks like an exensive option!

What about converting to interest only for a few months - has anyone done this, how did that affect payments?

dunstonh

Thanks, looks like an exensive option!

it is because its not a holiday. It is authorised arrears effectively. The amount you dont pay back is added to the mortgage balance and when you restart paying, you have a higher amount borrowed and a shorter period to pay it back over.

Debs0778

I get you

What about a spell of interest only, I assume this is the same thing except you havent borrowed anymore

nzmegs

We used to get payment holidays from Northern rock for just a few extra pounds a month. the last time we enquired the extra money each month was huge and not worth it.