How do I get a mortgage payment holiday?
My mate recently got a holiday from his building society to help pay for his holidays.
Unfortunately it is not really a holiday depending on the lender the missed mortgage payment/s will either be divided over the next 12 months in addition to the normal payment (this is the better option although on monthly budgeting it may not appear so!) or the missing payments are added to the end of the mortgage. (this means you will pay more interest on the deferred payments).
It shoulded be pointed out that deferring mortgage payments to pay for a holiday is not a good idea, payment holidays are limited by the terms of the mortgage agreement and are meant for times of difficulty i.e. loss of job or reduced income to prevent the mortgage going into default and effecting a persons credit file. | 12.01.10 @ 23:32
I agree with what Kevin has said. Payment holidays can be a useful tool if you have already overpaid on the mortgage and therefore created your own "facility" to step back later on. But stating the obvious you will end up paying more as the interest will accrue on a larger balance for longer.
not all mortgage offers enable the payment holiday facility and even those that do will have tough criteria to meet before you can use them. if you are having financial difficulties its best to speak with your lender asap as they will want to help you out and it will be easier for them to help you before things get out of control. | 12.07.10 @ 13:15