Has any taken 3-6 month moratorium on their mortgage at the beginning?

[Mortgageq1]

In the process of buying a house and as a part of the mortgage offer, we have been asked whether we’d like to take a moratorium of up to 6 months and our mortgage payments. I’m thinking I’d like to take 3 to 4 months. Just to ease us into being in the house so that we can afford to buy some furniture and bits and pieces, etc. It looks like it will only add on an extra 10 to 20quid to the monthly payment after that. Anyone else on this? posting here for traffic.

In Ireland

@Mortgageq1 thats an extra £6,000 or euros 6,000 over the course of 25yra.

you may found that ok, i personally wouldnt give the bank that much more of my hard earned cash.

if you have an emergency fund use that first.

you never know if and when you ll need a mortgage holiday.

honestly, the best policy is always to use your cash before delaying debt payments or adding more debt.

you are proposing to 1. Delay your debt repayments and 2. Adding 6,000 is adding more debt

not financially savvy.

I am in ireland too. Lenders are very greedy.
there is a catch, nothing is free in this world and especially this country sorry.

use your cash since you have some, wait till christmas dont wait to start your payment.

also your potential redundancy only apply if you are sacked not fired, you ll be taxed on it, and
your premium for the insurance for sickness will go up.

consider all factors.

I totally understand that this is not entirely for my benefit. There’s always a benefit for the banks and they’re not doing this to be nice. I get that. But as a PP said 5-6 grand onto the scale of mortgage isn’t massive (my opinion also)

I’m hesitant to use my emergency fund because if say my car breaks down two months later, then I have no cash to fix my car or buy a new one. I don’t have a credit card I don’t wanna take out another separate loan. This to me seems like the easier way to spread things a bit.

I can see how others would be hesitant. We will have another quite large cash injection by Christmas and we will use some of this to pay on the mortgage. I don’t really want to live in a house for six months with no flooring.🤣

I’ll look into the other factors thank you. I do already have a significant life assurance policy in place.

They do - it’s three repayments she won’t be paying so will be incurring interest on. Compound interest over 25 years means the total being repaid is £13k more.

It works out as 6345 over the life of the mortgage…

It doenst have to be over 25 years though. Op says they will get a large sum in 6 months time so they can do a larger overpayment and that interest will be much smaller.

How do you work that out? I assumed the first three repayments that they have to make up totalled £5k, with an interest rate of 3.75%, compound interest on that £5k over 25 years is almost £13k.

Just £20 a month. 🙈 you surely realise this will add thousands of pounds over the course of the mortgage to your repayment?

so you are happy to spend 6k on nothing??? Because that's what it is.

Well it’s freeing up nearly 6k this side where we need it so I feel like it may be worth it.

Standard monthly repayment (no delay): €1,847.83
Monthly repayment after 3-month delay: €1,865.21
Interest accrued during the 3-month delay: €3,752.33
Total extra cost over the life of the mortgage: €6,255.94
Sorry 6255…

No I wouldn’t do it. It will obviously mean you pay more interest overall and I just don’t think it’s worth it for the reason of buying furniture etc.

In the context of the overall mortgage, the cost of this 3 months is fairly minimal. And the value of that cost is decreasing over time (that is, €20 in 30 years will be worth substantially less than €20 now) - to say the cost to you is €6,250 is disingenuous. Your finances sound fairly robust, but if this 3 months is useful to you and you’ve considered the implications (which it sounds like you have), I say go for it