Mortgage holidays

[Elpresidente29]

AIBU to think you’ll actually pay more in the long run when interest is added. (In other words, they will add the interest on to your monthly payments once the mortgages resume in July or whenever it is.)

of course you will - they explain all that when you apply

It's a holiday, not three months free.

I don’t get what the AIBU is here? Of course you do, it’s explained pretty clearly when you apply.

Duh.
What did you expect to happen?
Also I don't know about anyone else but my bank couldn't have made the explanation more idiot proof. So there's really no excuse for people not to understand.

That’s correct.

Well, yeah...

But how much is added to the future payments each month?

That's generally how it works...

How long us a piece of string!

Depends on how much your mortgage is & your interest rate/length of mortgage.

Just ask your bank they'll explain it all.

If you're worried in someone else's behalf get them to ask their bank.

That's how it works and it is very clear - nothing is being hidden and people are advised not to do it unless absolutely necessary.

@ErickBroch
Yea thought that may be the case! There’s always a caveat! Soon they’ll be telling people to pay everything else they’ve handed out back. Wouldn’t be surprised!!!

yes. Its not a grant or a free mortgage break.
yes, the banks will get their money from you
yes, you will probably pay a bit more when you start paying again

IF you can afford to go without it, IF you have money coming in and you will be able to catch up when back on full pay and IF your bank is offering no bank charges or overdraft fees, it may be worth doing it other ways.

Or try this...

onlinemortgageadvisor.co.uk/content/mortgage-payment-holiday-calculator/

Yes, that’s why you really shouldn’t take a mortgage holiday unless you absolutely have to.

This calculator might help
mortage holiday calculator, but your own leander might have one online as well

Yes of course, but we can't pay it as my husband doesnt qualify for any government help due to not being self employed for long enough and we cant afford to pay it on one wage. I dont know what the AIBU is but we have no choice.

I wouldn't do it for the hell of it, but if it frees up cash to pay other bills you can't defer or to buy food it's not the end of the world on your average mortgage.

Plus in the future you can possibly gain back the difference by over paying.

To be fair, it's transparent and banks are really open about the impact. They don't want people taking 'holidays' under any pretenders or thinking it doesn't come at a cost. Equally I imagine that they want to keep as much money coming in on their debts as possible!

Yea thought that may be the case! There’s always a caveat! Soon they’ll be telling people to pay everything else they’ve handed out back. Wouldn’t be surprised!!!

It’s not a grant. Where would the money come from to give everyone 3 months not paying their mortgage? Of course, they will be getting back everything they’ve paid out. We will be taxed. A lot. For many years. Your employer will be taxed. A lot. For many years.

@cakeandgin
Yea what you say makes sense. A lot of people don’t think of the lt consequences of this and seem to be happy treating it like an actual holiday.

I think there are an unspecified number of people seeking to freeload off the back of this pandemic. Everyone wants an allowance,some slack,not pay things, get a free loan,whatever..

Nothing is for free. Free means someone else pays.

The banks and BS are gearing up to shaft savers and borrowers to bolster their profits. Mortgage and loan rates will be going up and savings rates have been cut to near zero.

@arnoldthecat
Totally correct! They will have to recover the money somehow so will increase taxes and all the other things you mention! People should not be celebrating and should be worried for the lt tepercussions

When I spoke to a mortgage advisor her advice was pretty clear if you need to do it then apply.......the application was easy and they have been very clear about the repayments.
I am hugely grateful for this period of payment break we may have made the first payment but I am just not sure about the other months that lie ahead so I am trying to get us straight.
I was receiving tax credits and had to apply for universal credit as I have lost all income.
They just stopped the tax credit payment so now I have a month before I know if we qualify and what kind of figures we are looking at.
So no income and now no weekly tax credit payment and a month before any idea of help we may get taking the mortgage break was our saving grace.

I've done it before. It's all very clear how it works when you apply. Three months off added less than £10 a month to my repayments, if that helps. Which it probably doesn't unless your mortgage is the same as mine!