Payment Holiday

Lisa_H

I have a mortgage with Nationwide. I understood this mortgage to be a 'flexible' one there by allowing me to take payment holidays. I have contacted them to ask if I can take a payment holiday next month to be informed I can take a minimum of 3 months and a maximum of 12 months. I DONT want or need 3 months.... I only want 1! If I take the 3 months that I dont need I will be hammered for interest... is that why they do it?

payless

suppose more to stop people keep doing for just 1 month- more hassle, although yes capitialised , it will increase interest charged

remember even on their tracker & fixed rates you could still over pay upto £500pm in the following months so could get back on line fairly quickly

Lisa_H

Thanks for that Payless but I bet they wouldn't put my monthly payments back down again!!!

Scott

You can, technically, make payments on a payment holiday, if you wish.

Although, you may not wish to do this, as some banks restrict the number of payment holidays you can have (to one).

Also, they HAVE to reduce your monthly payments if you tell them to, you are only required to make the minimum monthly payment every month, anything other than that is your decision.

And my final point: the interest that accumulates will only be slightly more than would accumulate on your mortgage over the normal 3 months. As you are on a flexible choice, you could save this interest up, then send in a cheque after the 3 months. Or just send in a cheque/bank transfer for two months payments at the end of your holiday.

Unless they have some small print prohibiting small part redemptions (even if they do, call and see if they'll take it from you) then that will achieve much the same thing. You'll pay slightly higher interest over the 2 extra months as your capital won't decrease, but nothing considerable.

Hope that helps.