Payment Holiday

tbarnett31

Hi All,

The Wife and I are coming to the end of our two year term with RBS and are looking to remortgage however, with plans to start a family in the next year, are looking to arrange a mortgage which allows payment holidays (6 months or similar).

RBS have given us the hard shoulder on that one.

Does anyone know of any lenders who do allow PH's ?!

Thanks

Thrugelmir

Maybe better to remortgage over a longer mortgage term. Thereby reducing your fixed outgoings.

A payment holiday merely increases outgoings further down the line. Something you may struggle with. Given you'll have additional costs to contend with once you start a family.

Ideally you need to save now. So that you can fund maternity leave etc yourselves.

Payment holidays are often recorded as authorised arrears on credit files. So may have a wider impact that you might envisage.

kingstreet

I'd avoid it too.

Think about borrowing six months mortgage payments by increasing the mortgage amount you need. Stick that in an ISA and feed it back to your mortgage each month for the six months.

Then, when you are back to full incomes, overpay a bit each month voluntarily to get the mortgage amount back to what it should have been.