First Direct 3 Month Mortgage Repayment Holiday

IAMIAM

Hi,
Noticed they have not launched this. What feedback are people getting? Do you have to pay back the full 3 months, as that what if reads like on its FAQ's if I request it.

Thanks,

Thrugelmir

A holiday is just a suspension. The unpaid interest will accrue and be added to the mortgage balance. When the holiday term is over. Payments will then be recalculated to repay the debt over the remaining term of the mortgage. As a result, subject to interest rate fluctuations, your monthly payment will increase. 

IAMIAM

Great thanks, is this what FD are doing or is this you explaining what mortgage holidays are in general?

Thrugelmir

IAMIAM said:

Great thanks, is this what FD are doing or is this you explaining what mortgage holidays are in general?

That's how deferment works. Holidays aren't a new concept for those in temporary financial difficulties. 

IAMIAM

ok thanks for clarifying, so why are some lenders doing what you have said and others doing it differently?

Thrugelmir

IAMIAM said:

ok thanks for clarifying, so why are some lenders doing what you have said and others doing it differently?

Any particular examples?