Going interest only for a short time

seajones

Hi all,

Just wanted to get people's thoughts on an idea I have, some background:

My wife is currently halfway through her maternity leave, and her pay (NHS maternity scheme) is about to reduce from half her normal salary to Statutory Maternity Pay only. After a few months, this will reduce to nothing for the final 3 months of maternity leave.

I have a full time, reasonably well paid job, and can cover all bills, but not food, consumables, clothing, etc., so things could get a little bit difficult during those final few months.

I initially thought it would be a good idea to take a mortgage holiday for those few months, freeing up easily enough to make up the difference, but we don't meet Halifax's minimum remaining LTV for that, so now I'm considering switching to interest only during that time. With it being only a few months, we can make up the difference with relatively moderate over payments over the following year.

Thoughts anyone?

ViolaLass

Have Halifax indicated that they would grant this?

betmunch

Cant see halifax being keen on that but you never know.

Have you previously overpaid your mortgage?

seajones

Halifax haven't been approached about this yet, no, it's just an initial thought.

It's my understanding that they will require a planned set of overpayments to make up the difference before the mortgage is over - which I can provide.

No overpayments, no.

Thrugelmir

They may well wish to see a statement of you monthly household income and expenditure. Is there anything else you can cut out or stop paying for. Do you owe money on credit cards or loans?

mark55man

Is it out of the question for your OH to consider going back to work. Its clear you are going to be squeezed.

My advice is
* don't do the mortgage holiday - its just the wrong thing to do
* find some way of reducing expenditure
* and/or find some way of earning more

As a dad of 4 I played all the games in the book to get through the financial aspects of parenthood, and it really is as simple as this - you will have to bite the bullet in order to manage your family income so you might as well do it sooner rather than later. One way or another (or one kid after the other) this will happen so the earlier you do it, the less stress you will have had, and the more you will have saved

With a young child there is very little they need other than you and your OH - so don't be too proud or style conscious and there are plenty of things you can do cheaper than buying everything brand new

Plus - kids will enjoy the more expensive holidays when they are older - when they are little the seaside is just brilliant