Natwest Mortgage Holiday - amazed

[LittleRen]

Hi All

So two weeks ago in a mild panic I enquired about a mortgge payment holiday with natwest, I'd really forgotten about it as our situation changed and luckily our business is carrying on.

Our normal mortgage payment is approx £1350 and apparently after the break it will increase to £2768. I knew it would increase but I didn't realise it would double!!!!

Surely anyone taking the break is going to be crippled by this?

Anyone else had similar?

The increase really depends on how many years you have left to repay. A big increase suggests you don’t have many years left

Marking place. We've also applied but haven't heard back yet.

Martin Lewis as ever is giving good advice. He highlighted this and recommended investigating whether switching to interest only rather than a mortgage holiday would be better for some people.

How long will you have to pay the increased rate for? I thought they were just supposed to tag the extra 3 months into the end of your mortgage?

Are you sure they’re not just trying to double it for the following 3 months

If not, it can’t be right

We have just finished year one of a five year fixed, moved last year. With a term of at least 26 years left, might even be 28 years.

I have gone back asking to cancel but also gone back questioning it. They are so bust though I doubt they will reply.

I think I am ok to post this, nothing personal on there -

Your payment holiday details and estimated future monthly payment

• Your payment holiday will take effect from 20/04/2020 for 3 months

After the payment holiday ends your new monthly payment will be approximately £2768.34

• Please note if your mortgage payments were in arrears prior to requesting a payment holiday we will contact you to agree how this will impact your current arrangement with us

The impact of this payment holiday on your mortgage

Please make sure you are aware of the impact this payment holiday will have on your mortgage.
Although on a payment holiday, interest will continue to accrue which means you’ll pay back more over the full term of your mortgage
When your payment holiday ends, your normal monthly payments will increase to reflect those not collected. We will confirm what these will be before the end of the payment holiday
The term of your mortgage will not change
The payment holiday will not negatively impact your credit rating
By requesting a payment holiday you have acted on behalf of all parties named on the mortgage

Call back and ask to escalate to manager.

With 25 or so years left on your mortgage, that simply isn't correct. The maths doesn't work.

That can't be right!!

What does this say?
www.moneysupermarket.com/mortgages/search/payment-holiday

It’s definitely not right. We took a mortgage payment holiday a while back. We had 14 years left on our mortgage and took a 2 month holiday, the payments went up from £840 to £860.

Those maths dont sound correct at all

I just plugged your details into that calculator using our interest rate (1.76%) and it's only £17 a month more. Something has gone awry somewhere!

Is your deal ending and you're going onto the SVR? Even that wouldn't be that much though.

Sorry I just saw your deal is nowhere near ending.

That can’t be right ours is going up by about £14 a month

@NotSuchASmugMarriedNow1 no it has been made clear that if you request a mortgage holiday your repayments amount will increase and interest will still accrue. This is why it is not a good idea for many people.

£1350 to £1368 maybe.

It's got to be an error. We'd be mortgage free after 10 years at that rate.