Question for those that took a Mortgage Payment Holiday

[Boredsheep]

How much will your payments increase by? Our mortgage is £630 a month - how much are we looking at roughly?

I’ve not done it but I thought it was added to the term, so 3 months extra payments at the end?

@RJnomore1 I’m not sure about other lenders but ours is added onto the amount of mortgage and then recalculated to include interest.

In our case (HSBC), they are spreading it out over the rest of the term so it depends how long you have left. If it's not long, they might go up quite a bit, but if you've still got 20 years to go, it won't make much difference. They've told us they can't say until the end of the payment holiday, when they'll write to us and let us know the new monthly payment amounts.

Can you take a 3 month mortgage holiday anytime this year? We’re ok for now but we might need to in 3 months.

As @Bananabell says, it's not an extra 3 months on the end, it's spread across the remaining term. So it's a lot easier to take if you have a long term left on your mortgage, payment difference will be higher if you only have a few years left.

Oh that’s interesting and useful to know, thanks

@Bananabell have they gave you any indication of how much?

As @Bananabell says, it's not an extra 3 months on the end, it's spread across the remaining term.

My bank has given me the option of adding an extra 3 months on the end or spreading across the term. I'm not sure which one to go for!

No idea but I've only had my mortgage 8 months and it's a 28 year term so hardly anything!!

Your lender is the only person who can say for sure and many have calculators on their websites now.

@Boredsheep No they just said if our remaining term was long (which it is, 20 years) it would be minimal. You could probably use an online calculator to work it out - if you plug in your outstanding balance, the interest rate and the term you will have left when you start replaying it should tell you the new monthly repayment amount.

As @wondering7777 said, you may have the option to add it on to the end of the term. Some lenders are also offering to put you on an interest-only mortgage for a bit too.

It all depends on how much your mortgage is, how long left you have on your mortgage and what interest rate you have.... we have a relatively low interest rate and 20 odd years to go. I think it’ll be an extra £5/6 a month

As @wondering7777 said, you may have the option to add it on to the end of the term.

There was a 3rd option of paying it back straightaway, but I didn't think that one was even worth mentioning!

We will be paying an extra £8 a month when we start paying again. We have 23 years left and it was £944 a month. Interest rate around 2.5% I think

Ours is £3.20 a month but we have just remortgaged anyway so was paying £20 less a month so still about £16 a month less than we Hve been paying befor..

Get an estimate here:
www.moneysupermarket.com/mortgages/search/payment-holiday

Mines roughly £5 a month.

Ours is £845 a month and we have 16yrs left. It added approx £15 onto ours. We are with NatWest and they told us how much the new payments would be and we agreed it before it happened (we had to let them know if we didn’t agree)

My bank advised that it would be around £7 a month
10 years left on mortgage fixed rate tracker or 0.5% above base rate before break payments about £460 pm

Thanks everyone. That gives me a bit more of an idea. We applied today so hopefully should know soon.

No one can tell you apart from your lender as everyone is on different terms interest rates ect.

Yes I know that but its given me a rough idea.

Mortgage ''holiday'' is not free and not fixed: the 3 months payments and regular interest accrued will be spread over remaining period PLUS additional interest on those amounts (balances). Hence the overall cost of new mortgage will go up to £300 - £650 (additional interest you will pay for payment defferal) depending on your interest rate and remaining mortgage balance.