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Mortgage repayment holiday interest only
petalbrain
Posts: 5 Forumite
Could you tell me if it is possible to get a payment holiday on an interest only mortgage?
And if so how does it affect my payments?
And if so how does it affect my payments?
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Comments
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The interest that you won't be paying will be added to the loan size, so future repayments will be higher.
Whether it is allowed depends on your lender.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
My wife is worried about asking as we have only had the mortgage for a year. I am aware that we can ask for a payment holiday after 9 payments according to our mortgage, however the worry is that having asked for a holiday this may raise some sort of flag against our account. Also the mortgage is with Northern Rock eeek!!!0
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however the worry is that having asked for a holiday this may raise some sort of flag against our account.
Not yet but it may do in future. There has been coverage in the financial press that mortgage books with high proportions of mortgage holidays may cover up signs of bad debt and that they may get rated a higher risk in future. With future lending (at corporate level) likely to be rated for quality, then it is possible (and note it is only a possibility) that those that have taken a mortgage holiday could be viewed as a higher risk and not get access to the best deals in future.
At this moment in time though that is not the case.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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