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'Holiday' reprieve on mortgage. Advice??

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Is there anyone who has had a 'holiday' reprieve on their morgage? I'd never heard about this until someone mentioned this at work. I'm really struggling at the moment to sell my house whilst renting privately. My morgage advisor can't get back to me until Friday and thought someone might know how this works. Surely if you have a few months reprieve there will be costs/interest incurred. Any info much appreciated. Thanks.

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Speak to the building society - the Abbey grant you a payment holiday on flexi mortgages - if you have enough equity to make the payment. So you still pay it but not out of your pocket.

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Hi Willman, i'm with the Yorkshire and on a tracker. I'm really not clued up with these sort of things-used to leave this to my ex. How do these actually work? Seems to me that if i am granted a 'holiday' relief then somewhere i will have to pay charges etc?

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Hi Maaaaargaret

 

I used to work for the people who are supposed to give you extra...Yes, of course you will "pay " eventually. Effectively what happens is the monthly payments you should have paid are added back onto your overall debt so you kind of end up paying interest on interest. Because of this, when you start repaying after the holiday your payments will go up slightly - unless you change the term. If you are struggling then lengthening the term MIGHT be another option but of course you will end up paying more over the whole mortgage term.

 

I would say DO NOT do anything until you have spoken to BOTH your mortgage advisor AND the building society. This is a potential minefield. I don't know anything about the Yorkshire but I would urge you to speak to them and see what they suggest.

 

Hope things work out OK

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Is there anyone who has had a 'holiday' reprieve on their morgage? I'd never heard about this until someone mentioned this at work. I'm really struggling at the moment to sell my house whilst renting privately. My morgage advisor can't get back to me until Friday and thought someone might know how this works. Surely if you have a few months reprieve there will be costs/interest incurred. Any info much appreciated. Thanks.

 

Hi. If you take a payment holiday the missed payments will be added to the loan total and you will have to pay interest on them, also what is worth noting is that not all mortgages have the option for a payment holiday. Another option you can do is switch to an interest only mortgage for a short period it can lead to a massive reduction in monthly payments. You could also ask the lender to extend the term of the mortgage but that might mean changing your current mortgage product which would not be a could idea at the moment if your on a tracker. You could speak to the lender directly tomorrow instead of waiting until Friday for your advisor.

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Agree with Danny Boy, speak to the lender directly. Your advisor is just the go between (no offence DB :) ), its the lender who can make the decisions. I went interest only for 6 months last year and it saved a huge amount on my monthly payments. But remember your debt will not reduce during this period so only do it for a shorter time as necessary.

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Agree with Danny Boy, speak to the lender directly. Your advisor is just the go between (no offence DB :) ), its the lender who can make the decisions. I went interest only for 6 months last year and it saved a huge amount on my monthly payments. But remember your debt will not reduce during this period so only do it for a shorter time as necessary.

 

Non taken ;) your right the final decision is always down to the lender. We give the best advice we can but ultimately it's always down the lender ax to what can actually be done. I would always recommend be in difficulty to speak to an advisor first for impatial advice then go to the lender as at least then the client will be a little bit more clued up on what they can and can't do.

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Usually you have to have completed a year, and have not been in arrears.

Definitely ring the company directly. Even if it is not stated on the loan document, it may be available on your product.

Don't think you are begging for a favour, they either will or won't it's not at the managers discression.

Obviously the money has to be repaid within the terms of the mortgage but you will not be charged for missing payments. I assume your problem is cash flow now, so go for it.

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Thank you to all with your advice. I really think that waiting for my appointment with the Yorkshire will give me a definate answer. I pretty much assumed that the holiday payments might be added on somewhere along the lines. At least this advice has given me time to think around this before my appointment.I'll look at all the options carefully. Thank you all again.x

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