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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

you don't have to pay your mortgage while on maternity leave - AIBU to want to shout about it?!!

161 replies

threeleftfeet · 04/05/2012 14:33

AIBU to want to shout this from the rooftops so more people know about this?!

Many mortgage providers let you have a mortgage holiday, no questions asked, while you're on maternity.

I had no idea about this, I found out by accident as I rang my mortgage provider (Halifax) to ask about something else and the nice man at the other end told me.

It made so much difference to us to simply not pay the mortgage for 6 months after DS was born.

I suspect a lot of mums go back to work earlier that they would otherwise because of the pressure of bills, and would have a much easier time being a new mum if only they knew about they didn't have to pay the mortgage.

Not all mortgage companies do this I don't think, but they don't make a big deal out of it - yours might well do without you knowing about it.

HTH someone!

OP posts:
Bobyan · 04/05/2012 14:39

Great, except for the face you will extend your mortgage term by 6 months and have to pay the interest on this period too...

It would work out cheaper in many cases to keep paying.

Bobyan · 04/05/2012 14:39

Face = fact

NatashaBee · 04/05/2012 14:41

This reply has been deleted

Message withdrawn at poster's request.

Scholes34 · 04/05/2012 14:42

Obviously the Halifax thinks he's a very nice man too!

Longtalljosie · 04/05/2012 14:43

Well, while I wouldn't do it either Bobyan I think it should be more widely known. People have different financial situations... Mind you - I would read your mortgage T&Cs to find out about it rather than calling up... some mortgage providers start getting all un-necessary when one of the salary-earners goes on maternity...

chaosisawayoflife · 04/05/2012 14:43

I have also heard of 'payment holidays' going down as arrears on your credit file.

Bobyan · 04/05/2012 14:46

I wonder if the OP works for the Halifax Wink

FrillyMilly · 04/05/2012 14:47

Ours only do payment holidays of one month per year and to get this you have to pay extra for the other 11 months. At least they did when we asked, they may not anymore since they were nationalised.

trixymalixy · 04/05/2012 14:51

It might be cheaper in the long run to keep paying, but for me if it was a choice if being forced to go back to work earlier than I would have liked or take the full year, I'd rather pay a bit more in interest in the lOng run.

notactuallyme · 04/05/2012 14:52

Yes be careful - I had a loan and barclays helpfully let me pay less for a couple of months without telling mw this was an arrangement to pay. I had no idea it would affectt my rating and it has really buggered future credit for me.

ReallyTired · 04/05/2012 14:59

You have to pay your bills at some point. In the long term having a repayment holiday ups the amount of interest you have to pay back.

Its a good idea to talk to your mortage company if you are in financial dire straits for whatever reason. Having an arrangement to pay is better than a reposession order.

stilldazed · 04/05/2012 15:00

Yay!! get in more debt for something you WANT.

op do you have credit card debt by any chance?

kittycatwoman · 04/05/2012 15:01

Its better to keep paying rather than taking a break because you will have to eventually pay off all the mortgage one way or other. Another thing to keep in mind is not to over extend by borrowing too much such that circumstances like maternity will actually cause a problem for paying the mortgage and paying the bills. Sadly a lot of people just borrow 4 or 5 times their salary in order to buy that flat they have just seen and when an event like pregnancy happens it hits them hard.

Teeb · 04/05/2012 15:04

Yeah, I don't know how good it is that people get the idea that they just have a holiday from paying their mortgage. Plus the big hit you will be taking when you do go back to work and you have a mortgage payment and childcare costs.

RightBuggerforit · 04/05/2012 16:03

Ooooh, I actually like this idea a lot! I earn a decent proportion of our joint wage and went back to work at 9 months last time, before either the baby or I was ready just for the money (to pay the mortgage)! I know it's not free, but imo that doesn't make it a bad idea! An extra couple of months at home with a very young baby is worth a lot, I'd definately consider this.

Original poster
threeleftfeet · 04/05/2012 16:07

For us it made a massive difference.

Without the mortgage holiday, DP would have had to go back to work very soon after DS was born, we would have struggled massively financially, and I would have had to go back to work much sooner (at 6 months maybe?)

With the mortgage holiday, DP was able to take two months away from work. (Self employed to didn't have to ask anyone!) and I can't adequately express what a massive help that was, compared to my friends who were left alone with their new baby at 2 weeks (or less).

Also I got to take over a year at home with my DS before having to return to work for financial reasons.

OP posts:
Original poster
threeleftfeet · 04/05/2012 16:10

They do add charges to your mortgage for taking a holiday, but it's not massive, considering.

If you can easily afford your mortgage while on maternity leave and the decision to return to work isn't forced on you by having to pay the bills, then no it probably doesn't make sense to add any extra charges to your mortgage.

But for us, a choice between not paying it now, and paying the mortgage for a little longer once DS is older and I'm working full-time? That was a no-brainer!

It might bot be the right thing for everyone, I'm not saying everyone should do it. But I wish more people knew it was an option.

OP posts:
Original poster
threeleftfeet · 04/05/2012 16:10

It made no difference to credit checking - this was a service they offered, nothing to do with ability to pay.

OP posts:
Original poster
threeleftfeet · 04/05/2012 16:11

"I don't know how good it is that people get the idea that they just have a holiday from paying their mortgage"

How is that not a good idea?!!!

OP posts:
Original poster
threeleftfeet · 04/05/2012 16:13

"There is also the option of going interest only if your lender allows it."

Good point. My mortgage lender lets you go interest free for a fee of £75. You can switch back at any point.

This can also be a big help. I'm studying at the moment and so I've got it on interest free till I finish. The flat has doubled in value since I bought it so no worries about not being able to repay it unless something really drastic happens to the markets!

OP posts:
Original poster
threeleftfeet · 04/05/2012 16:14

hee hee, no I don't work for Halifax!

OP posts:
MsVestibule · 04/05/2012 16:16

Why are most people raining on the OP's parade? I'm sure she realises she'll have to pay it back at some point. Of course it's worth suggesting she checks it's a payment holiday rather than an 'arrangement', but there's nothing wrong with deciding to take a bit more maternity leave. I'd rather work an extra year at the end of my working life if it meant I could spend an extra few months with my new baby.

wem · 04/05/2012 16:21

It doesn't sound like you have a particularly good grasp of your finances. I doubt you have switched to 'interest free', probably interest only, where you aren't repaying the debt, and increasing the length of time you'll be paying it back and therefore the amount you'll be paying in interest.

Mortgage holidays are for emergencies, IMO.

NatashaBee · 04/05/2012 16:22

This reply has been deleted

Message withdrawn at poster's request.

Lizcat · 04/05/2012 16:28

As other have said you need to calculate exactly how much this will cost you over the term of the mortgage. Financially the best thing for the vast majority of people is to pay the mortgage off as fast as possible thereby saving years of interest.