Mortgage Payment Holiday?????????

tashlovestosave

Our Mortgage is with Halifax and as part of the 'deal' we are 'entitled' to a payment holiday. Now we were thinking of going for this and using the 6 month break to pay of two credit cards and a small amount left on a TV that we bought on credit (never again!!!!). Is this a good idea???? Comments below would be most appreciated. Thanks x

tashlovestosave

I need to ask a question.............

Am i using bad forum etiquette????? I have put a couple of posts on here asking questions and have replied to (and thanked) a few people.........i have recieved one response though..........although the last post i put has been viewed over 50 times!!!!

I am new here but not new to forums.........i know that debt is a monster and people need help but i cant help but feel like an outsider intruding on a private site.

Is there anywhere for newbies to post and get answers and help??? If there is.....let me know and ill pop off over there.

Cheers

Sloppy_Saver

Dont worry, everyone is welcome. I've only been here a couple of days and feel like part of the furniture already.

Everyone in the MFW loves me for my amazing mortgage advice, helping them remortgage their houses and investing the money in pensions... NOT!


Welcome!

Sloppy_Saver

oh, and to answer your question. I wouldn't ever take a mortgage holiday unless I had lost my job and was on my uppers.

You're just "taking from Peter to pay Paul".

tashlovestosave

Hiya

Thanks for the welcome

I see what you are saying about the Peter/Paul thing but would it not make sense to get rid of the high interest credit cards???? I have tried Balance Transfering but cos we are moving around so much......we dont have a 'good' credit history and therefore have been turned down.

Sloppy_Saver

The worry is that you take your holiday, enjoy the cash and forget to pay off the cards. Also, the bank offer payment holidays (in my opinion) to just drag out the mortgage repayment.

I'm pretty sure that it would also mean that you'd be paying the interest from the mortgage holiday over the remainder of your mortgage term, say 20 years. I'm sure that would end up more expensive than just cutting back and paying the cards off.

About 10 years ago I borrowed some money on my mortgage for home improvements, I had a kitchen fitted. This was a change to the structure of the property and also added value so in my book was a good investment. What wasn't a good investment was that I also bought a washing machine, fridge and dryer with some of the mortgage money. They added nothing to the value of the house, just added to the size of the mortgage. Those white goods are long gone, but damned if I'm not still paying for the bloody things every month!

Kaz2904

You need to be more specific and say how much you owe at what rate. Are there any redemption penalties or similar. How much do you pay out at the moment on each thing? What terms are left?
A helpful tool to you may be https://www.whatsthecost.co.uk/snowball.aspx this site enables you to add all of your debts to it, what you pay each month and then see how to pay it off. It will show you the cheapest way to repay your debt. Try having a look at the debt free wannabe board for some more advice on cost cutting.

BrunoM

The general rule for all this stuff is pay off whatever debt is "worst" first, so as per Kaz's post above, investigate all the details on the payment holiday and how much it will cost you to use the option, then work out how much you'll save by clearing those cards... it's certainly something that might work and is worth looking into.

Floxxie

tashlovestosave wrote:

I need to ask a question.............

Am i using bad forum etiquette????? I have put a couple of posts on here asking questions and have replied to (and thanked) a few people.........i have recieved one response though..........although the last post i put has been viewed over 50 times!!!!

I am new here but not new to forums.........i know that debt is a monster and people need help but i cant help but feel like an outsider intruding on a private site.

Is there anywhere for newbies to post and get answers and help??? If there is.....let me know and ill pop off over there.

Cheers

You could try posting on the mortgage board above. I don't know if this board has changed its aims but I thought this was for mortgage free wanabees...although looking at some of the posts I am no longer certain.
Apologies if that is what your plan is....

Ors

Hi,
Could taking a Mortgage Payment Holiday affect ones ability to get credit in the future.
Anyone knows more about this?

(moneyadviceservice.org.uk suggests it does)

Thank so much for whoever put the effort to respond,

Or