AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
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Has anyone here ever taken a mortgage holiday? Would like to know the pro's and con's, I need to find some way to temporarily sort out my financial situation.
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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you read your t&c's my mortgage will only let a holiday of what i have overpaid which is nothing lol
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AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
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Haha that would just be my luck, well I've been paying a year so yeah probably nothing! I only want a month or two.
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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My first direct mortgage allows me to take up to 6 months at a time, but they look at your circumstances individually and may not allow you to. That changes lender to lender though so you might be ok.
By taking a holiday you are effectively extending your term, so over the life of the mortgage will pay a lump of extra interest.
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AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
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Hmmm, I'm with the halifax, I may have to pop by and have a chat with them tomorrow perhaps. 2months or so off isn't going to add much interest really?
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AndyKent
Member
Registered: 3rd Sep 05
User status: Offline
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Probably not that much, but say you're paying £400/month you'll be paying interest on an extra £800 every year versus what you pay now.
Say 10 years at 4% = £300ish.
Not that much in the scheme of things, but a hefty amount versus what you avoid paying short term.
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CORSA NUT
Member
Registered: 3rd Aug 01
Location: Wirral
User status: Offline
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Were with Nationwide and did it a few year ago. Basically you still pay the mortgage protection and the interest etc that your not paying gets put onto the full term of the mortgage...carefull though it's a but TOO nice not paying it 
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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i'm with halifax too and iirc i can have 1 or 2 months mortgage holiday per year I THINK.
best to check your contract though as it will definitely be on there, i remember reading it.
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deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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My parents did one. They could choose either to extend the term by that number of months, or choose to pay more but finish the terms as they were going to.
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AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
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Ben not sure where on earth my contract is doh! , going to pop in tomorrow and see what they say.
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