Payment "HOLIDAY" on our mortgage...

ceredigion

pogofish

teresa_i wrote: »

Dear Moneysavers! I am new to this site and this is my first post, so I hope I'm doing it right....

This is an entirely inappropriate forum - As you well know because as part of your signup you confirmed that you had read and understood the basic guide to posting on here!

If you find that too hard to follow, it really must be asked if you are really capable of taking-on something important like a mortgage?

peter_the_piper

Rosemary7391 wrote: »

I don't know how endowment mortgages work, but I have a repayment mortgage and I'd always assumed interest would be added as normal during a payment holiday. I'd certainly expect it to cost!

Endowment means you only pay the interest on a mortgage at a higher rate than repayment in the hope the money built up will pay off the original mortgage price. So a break in an endowment mortgage will have to be paid for at some time as you would be short of money to pay it off. The mortgage figure does not reduce over time.

Maybe if it had been called a "payment deferment" there would not have been the confusion.

Running_Horse

I get glossy leaflets all the time from my bank offering to lend me tens of thousands of pounds, even though I am debt free (apart from a mortgage I am overpaying). Strangely, I have never felt forced, cajoled or coerced into borrowing money against my will. And if I did borrow that money, it would be on the basis that the bank would want repayments at some stage in the future.

teresa_i

i am more careful now - once bitten, twice shy. But in 2001 when we were struggling to make ends meet it was a tempting offer. Back then, the banks were a trusted institution.

ARandomMiser

Surely after 2001 you would have read your annual statements that you received in 2002, 2003 and 2004 and realised what was going on?

Thrugelmir

Not sure which dictionary you used.

Break - Stop proceedings in order to have a pause

Holiday - A short period during which the payment of instalments, tax, etc. may be suspended

getmore4less

teresa_i wrote: »

No sorry I didn't think that I would be 'credited' in some way when I was on the payment "holiday" but naively I didn't realise that I would be charged thousands of pounds for the privilege. I wish they hadn't targeted me as I didn't understand the concept - until as I explained it was printed in black and white on a statement summary when we changed mortgages....

You got annual statement the cost would have been shown in those

did you not notice?

As you were interest only they should have capitalized the holiday and adjusted the payment.

Did they adjust the payment?

teresa_i

Nope they never adjusted the payments.

getmore4less

what was on the annual statements at the end of year that included the holiday.

Get your old statement out an let us know what they said.