Re: Mortgage repayment holidays! Do I take one o
DiggingOut
Posts: 770 Forumite
A mortgage payment holiday is basically the same as remortgaging to add more debt to your mortgage. It is just doing it a different way.
Increasing your debt on your home increases the risk you might lose it some time. For this amount, that is unlikely to be a significant consideration.
As you rightly said, it is expensive in the long term to increase your mortgage, but if you make overpayments to reduce the debt that reduces the impact.
If your mortgage will indeed allow a four month holiday (some only allow two months), that is a relatively inexpensive way to increase your mortgage borrowing to clear other debts.
Remortgaging can be advantageous if your current mortgage rate is not particularly competitive.
Increasing your debt on your home increases the risk you might lose it some time. For this amount, that is unlikely to be a significant consideration.
As you rightly said, it is expensive in the long term to increase your mortgage, but if you make overpayments to reduce the debt that reduces the impact.
If your mortgage will indeed allow a four month holiday (some only allow two months), that is a relatively inexpensive way to increase your mortgage borrowing to clear other debts.
Remortgaging can be advantageous if your current mortgage rate is not particularly competitive.
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If anything I say makes sense, then do it. If not, don't. Don't blame me or my stars if you do something stupid because I suggested it. I'm responsible for my own stupidity only. You are responsible for yours.
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Comments
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Excellent points from DiggingOut.
All I would add is "check your current deal carefully!" £185 monthly on an interest only mortgage of £56500 would mean your interest rate is 3.929% per annum. Did you fix your mortgage last summer? If you are currently paying 3.929%, I suspect your mortgage will be subject to a tie in period with your existing lender.
Good luck.Please note that whilst I am a mortgage broker my comments on this site are intended as general discussion and NOT personalised mortgage advice. Please click on my name and follow the link to see a full regulatory disclosure.0
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