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Mortgage Holiday

2 replies

LoobyLou2709 · 13/05/2020 14:34

We have a small family business and when the mortgage holiday option was announced back in March, we panicked and jumped at the offer, however since this with furlough of our few staff and a government grant, the help has been amazing and we are hoping (fingers crossed) we can ride through this difficult time, my question is how will the payments change when we start paying it again, I just assumed they would add the 3 months on to the end, but now I've heard we will still have to pay interest and so the monthly payment will go up when we start paying it again. I can't get through to our mortgage lender (Halifax) as they are only taking urgent matters, and I was wondering if i could pay the last couple of months now and continue as normal? Any thoughts?

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mortgagemum · 14/05/2020 07:51

With a mortgage holiday, they take the interest you've missed paying and tack it into the end. Then interest is applied to the new total balance. So if you took a 3 month holiday and your mortgage was £250k, it might cost you an extra £10 month when you start paying again. Most lenders will let you overpay your mortgage by up to 10% each year so if you repay what you missed, the balance will come down again as will your monthly payments. Smile

LoobyLou2709 · 31/05/2020 15:49

Mortgagemum, I have only just seen your reply! Thank you so much, this explains things brilliantly Smile

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