Mortgage Payment Holidays – You do not get to miss 3 months worth of Mortgage Payments and then continue with your usual payments there after.
The Mortgage payments that you miss during the holiday period are added to the overall balance of your Mortgage.
Once the holiday period is over, your new monthly Mortgage payments are higher as your Mortgage balance would have increased due to the 3 months of missed payments being added.
Your new monthly payments will increase by £10 – £100 or so. This is dependent on your current monthly payment amounts, current interest rate and overall outstanding mortgage balance.
Find out the facts. Know how much your monthly payments will increase by before committing to a Mortgage payment Holiday…
The 3 month break is great, especially if you’ve lost your job, have been placed on furlough or are going through financial difficulty, however once that time has passed, your monthly outgoings will increase and won’t be what they once were.
Some people have panicked and taken a Mortgage holiday because the option is there, it was all over the news and they thought, “why not?”. However in 3 months time, these people will be less pleased when their monthly payments increase by £80 and disrupt their monthly outgoings.
During the holiday period, save as much as you can so that you are prepared for any further rainy days.
Alternatively, if you can, plough on, cut back a little and avoid the payment holiday all together.