Corona Virus Payment Holiday on Interest Only Mortgage?

The_Force

Hi, we have a £160,000 interest only mortgage on our £550,000 house. It was used to part finance a property for buy to let, the property is in need of decorating etc before rental, but we can't get there to decorate as we are in lockdown, therefore we are not generating any income from the property at the moment, but are, indirectly, paying its mortgage.

Is there any advantage to applying for a payment holiday under the latest scheme as this is an interest only not a repayment mortgage, pros and cons?

Our lender is Santander.

Thanks.

Typhoon2000

Pro is less outgoings. Con is higher interest payments once the holiday is over as you will paying interest on the capital and on interest accrued during the payment holiday.

dunstonh

Is there any advantage to applying for a payment holiday under the latest scheme as this is an interest only not a repayment mortgage, pros and cons?

The interest you are not paying if you go into authorised arrears gets added to your debt.   Which in turn gets interest added on that.  Which means higher payments when you restart.  So, taking a payment holiday/authorised arrears will cost you more financially.   If you can afford it then keep paying it.