Payment holidays does this sound right

deanos

Rang C+G and enquired about payment holidays for 6 months, we pay £412 and owe about £52,000, they said all that will happen is the monthly payment will rise by about £1 a month for the term of the mortgage which is around £15 years + a one off admin charge of £30 added to the mortgage (probably best to pay cash for that )

I asked if this was the correct price a few times and she said yes, it sounds a bit cheap to me just an extra £1 a month

The wife is expecting in January and has just finished work , i owe £2500 on credit card which is 0% but i woul really like to clear this up and the payment holiday would pay this off in full, do you think this would be a good idea ?

AndyWallace

deanos wrote:

Rang C+G and enquired about payment holidays for 6 months, we pay £412 and owe about £52,000, they said all that will happen is the monthly payment will rise by about £1 a month for the term of the mortgage which is around £15 years + a one off admin charge of £30 added to the mortgage (probably best to pay cash for that )

I asked if this was the correct price a few times and she said yes, it sounds a bit cheap to me just an extra £1 a month

The wife is expecting in January and has just finished work , i owe £2500 on credit card which is 0% but i woul really like to clear this up and the payment holiday would pay this off in full, do you think this would be a good idea ?

£1 per month x 12 months x 15 years = £180. Have you been making regular overpayments previously or is £412 because you took a shorter term mortgage?

Andy

deanos

Ive never made any overpayments, £412 is the monthly payment i make and i have around 15 years left on a 25yr mortgage

AndyWallace

Then it's probably not right. if you consider the maths:

£1 per month x 12 months x 15 years = £180

£412 x 6 = £2,472

If you have previously made overpayments on the account then the lender will often use these overpayments to negate any underpayments or payment holidays.

HTH

deanos

I thought if i took 6 months holiday it would add 6 months to the term of the mortgage + 6 months intrest spread over the term ?

silvercar

could be £10 a month if you extended the term by 6 months.

AndyWallace

deanos wrote:

I thought if i took 6 months holiday it would add 6 months to the term of the mortgage + 6 months intrest spread over the term ?

It depends on the lender and its terms.

http://www.fsa.gov.uk/pubs/public/mortgage_steps.pdf

silvercar wrote:

could be £10 a month if you extended the term by 6 months.

Sounds about right to me.

Andy

deanos

Thanks folks will have to ring again, see if i can get it in writing £10 a month is gonna be alot cheaper than paying the credt card every month when i have to make full payments in April 07