Confused about interest only mortgage holiday

humantrafik

Sorry if this seems obvious but not entirely sure what a 3 month interest only mortgage holiday means for me after recently applying. I asked the question to my lender via their  automated online system as they do not accept calls during our pandemic (obviously). I am front-line nurse with a property I am renting out with a but-to-let mortgage where my lodger is unable to pay rent after losing his job. He has been great and hope I can keep him until he gets back on his feet.  I went through the motions of the online application where I asked the question how much the extra monthly repayments would increase by after the payment holiday? to my surprise they did not answer the question and automatically accepted the 3 month payment holiday and advised to cancel DD with bank which I have since done.  
I have a 18yrs left of 25yr interest only mortgage with rate of interest at 4.990. I pay £705 per month and would be really helpful if someone could explain to me if I should go with the 3 month holiday payment? The maths in my mind was 3x £705 = £2,115 divided by 18yrs = £117.50 divided by 12 months = £9.79 extra per month extra. Probably overtired and not getting it but please someone help me understand. 
Please bear in mind by brain is exhausted with job so any 5yr  old (6 on a good day) advice would be greatly appreciated. 
Thanks in advance 
Stay safe x

Thrugelmir

What's your mortgage balance currently, i.e. the amount you owe?  Doesn't have to be precise. 

humantrafik

Hi Thruglelmir, owe £161.500 which was based on me buying property for £210,000 with £55,000 equity from previous property. Does that help? thank you so much

Thrugelmir

I missed earlier that your mortgage is interest only. Your maths was correct. Because you aren't paying the interest on a monthly basis you will accrue in the region of another £20 of interest on top. Makes little difference to the new monthly payment though. 

elsien

As an aside, if it's a BTL and you don't live there, you have a tenant not a lodger. 

[Deleted User]

Can you review your mortgage in any way? That interest rate is really high

Get your mortgage to a half decent interest rate and you could save hundreds a month

humantrafik

Thank you Thruglelmir slightly clearer but when you say extra £20 on top are you referring to monthly payments on top of what I already pay? so sorry probably should be in bed so I can concentrate. 

elsien, thank you, yes as I mentioned I am a little brain dead so confirmed I did actually mean a tenant, thanks for your correction. 

Thrugelmir

Every month you'll pay interest on the £705 of interest you defer.  This itself compounds the debt owed a little. 

humantrafik

Thank you all for your advice based on what you have advised think its worth me incurring a little more to keep on top of my mortgage.