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.)

I’ve done a mortgage holiday before a few years ago it was fine my payments went up by about £6 a month and there was no other issues or detrimental effects .

Mortgage holiday is in effect a payment deferral. 3 months worth of your capital repayments plus 91-92 days worth of interest (accrued daily) are spread over the remaining months left of your mortgage. You will then incur additional interest, which will mean that your mortgage will cost you extra £350-500 in additional interest. This is what you will pay for having taken those ''holidays''.

Apparently 1 in 7 mortgages now on a break.

So many people have taken mortgage holidays not because they had to but because they jumped on the band wagon. The amount of crap some of my friends and family have bought is laughable. Taking a mortgage holiday to buy a lazy spa and garden furniture! I've been shocked at the stupidity

They will have to recover the money somehow so will increase taxes and all the other things you mention

Of course they will, do you really think you're the only person who's worked this out? Anyone who doesn't know that government borrowing needs to be repaid eventually is being naive at best.

As for the mortgage repayment holidays and similar for other borrowing, of course it's going to cost extra, but sometimes needs must if you don't have the cashflow.

Plus with historically low interest rates, the cost might not be that much, but circumstances vary. our mortgage is quite small and the interest rate is tiny, so would cost us less than £50 in extra interest but fortunately we can still afford to keep paying.

the banks do not explain the holiday to you! most of them you applied online and they said your monthly payments would increase never gave you any other information on it. So people panic losing there job and not having enough income to pay it so they took it most of you would do the same