Mortgage Payment Holiday

Issuma

Hi All
Not sure if anyone can help with this, we are considering taking a mortgage payment holiday for 1 month, I've spoken to the Halifax and they are happy for us to do this however I find it quite unbelievable that they can't tell me what my new monthly repayments would be after the payment holiday finishes.

I fail to see how we can make this type of decision without knowing how much our payments will increase by.

There are 3 sub accounts all at 3.99% interest but 2 of them have only 15 months to run and the 3rd still has 7 years.

I'm happy to post the figures if anyone thinks that they may be able to help me work this out ???

Thanks

amnblog

I can't see it breaking the bank.

If it is a concern don't take the holiday.

kingstreet

What goes on your credit file if you do this?

Issuma

No I'm sure it won't break the bank either but just think it's odd that they can't give you this information to help you make your decision there are lots of people who would only consider this option because of maybe some other financial situation so knowing what your new repayments would be is really important.

Issuma

If the payment holidays are factored into your Mortgage arrangement I don't think it has a negative effect on your credit rating.

kingstreet

I know some lenders class it as "authorised arrears" and mark it on your credit file.

Where's Goldiegirl when you need her?

Thrugelmir

kingstreet wrote: »

I know some lenders class it as "authorised arrears" and mark it on your credit file.

In the current enviroment , a certain yes to this or something similar.

Thrugelmir

Issuma wrote: »

I fail to see how we can make this type of decision without knowing how much our payments will increase by.

Not the lenders business to do this for you.

The arrears will not be spread over the remaining term of the mortgage. You will be expected to repay the arrears plus accrued interest and costs levied, within a set time frame. Say 3 to 6 months for example. The lender may well request submission of a household budget.

Defaulting on your mortgage is not a idea. If at all possible seek alternative source of finance to tide you over. Particularly if it's just one month.

Issuma

Thanks for your replies.

It must just be me but I still think its odd that I can't be given any idea how much my mortgage payments would increase by should I decide to take the payment holiday, it's like going in a shop and buying something on credit but the salesman can't tell you how much the monthly payments would be, surely you wouldn't buy something without knowing the full cost first ??

I have checked and this wouldn't be classed as agreed arrears or a default and would have no effect on my credit rating, the 1 month holiday would be spread over the existing term of the mortgage, I have had my mortgage for a long time so maybe the criteria is different.

Thanks to everyone who has taken the time to reply.

Rachylou1981

Is a one month payment holiday really worth it?

I took a six month payment holiday whilst I was saving to travel and at the end of the period changed my mortgage so that I was down as a landlord as I was renting house out for a year to travel - I expected a big increase but my payments only went up by a few pounds.

Issuma

I don't want to take any more than I actually need, 2 sub sections of my mortgage only have 15 months to run because of this a portion of the money is being paid back over a relatively short time period which i was advised could have a bigger than expected impact on the new repayment amount but when I asked how much of an impact they said they couldn't tell me as the system doesn't have that facility ??