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Mortgage holiday?

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  • simon_or
    simon_or Posts: 890 Forumite
    500 Posts First Anniversary Name Dropper
    Extending the term is definitely an option, though might be overkill given the OP's situation sounds temporary due to relocation.

    I agree that a six month interest only payment will lead to increased payments further down the line but the magnitude of that jump is going to be pretty minor in the grand scheme of things.

    Say you had a 150k 25yr mortgage at 5%. Your monthly payment would be around 880. For ease of calculation assume 480 is interest and 400 is capital. By not paying capital for 6 months, your capital balance would be £2,400 higher than it would be otherwise. The additional monthly payment would be around £15/month. Not ideal but not huge either.

    In any case this would be far better than missing a mortgage payment, or another payment that would leave a mark on your credit history.
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