When is a mortgage holiday not a mortgage holiday

markuk767

Mortgage 'holidays' are a total scam by banks! I took a 3 month holiday during covid peak in Apr thru to Jun, so kept roughly £1700 in the bank......however it appears my monthly payments have risen by £70 / month (I expected this of course) , but it until the end of my mortgage.....so the result, that so called 'holiday' has cost me a whopping £9000.........!!!!!! Had the bank told me this in real monetary terms I would not have done it.....totally screwed by the banks (

MWT

It was a genuine holiday from making payments, but the ones I've seen all made it clear that the interest kept running, and from the sound of things you knew that, you just didn't ask what that would mean in terms of the change in future payments...

Have you asked about over-paying to reduce the outstanding balance to what it was, which would then reduce your monthly payments to what they were as well...

[Deleted User]

markuk767 said:

Mortgage 'holidays' are a total scam by banks! 

Maths can hardly be described as a scam. 

If you've changed your mind about spreading the mortgage over a longer period, make overpayments, as above. Just check whether any ERC would apply. 

Thrugelmir

markuk767 said:

Mortgage 'holidays' are a total scam by banks! I took a 3 month holiday during covid peak in Apr thru to Jun, so kept roughly £1700 in the bank......however it appears my monthly payments have risen by £70 / month (I expected this of course) , but it until the end of my mortgage.....so the result, that so called 'holiday' has cost me a whopping £9000.........!!!!!! Had the bank told me this in real monetary terms I would not have done it.....totally screwed by the banks (

Something sounds amiss. £70 a year perhaps. 

HelsBels71

I took the holiday payment for COVID for 6months as self employed and income dropped dramatically. The result is I have a bad credit rating and no lender will offer me a mortgage. I needed the holiday payment as I didn’t qualify for support as a director of a ltd company, now I am in a terrible position having had excellent credit reports all my life. I am dealing with the complaints department at Barclays but it is VERY stressful.