mortgage holiday

A guide to mortgage payment holidays: What is a mortgage payment holiday?
ref: http://www.moneyadviceservice.org.uk/en/articles/mortgage-payment-holidays

Pros of a mortgage holiday

The biggest positive about a payment holiday is that it relieves some pressure for a while. For six months or more you have one less thing to worry about when considering your outgoings.

If you are only facing a temporary drop in income, perhaps because you or your partner are having a baby and the mortgage holiday is to cover the maternity leave period, this can be a sensible move.

Cons of a mortgage holiday

While a mortgage holiday can be a useful short-term solution, it is not suitable if you can’t afford your mortgage payments because your household income has reduced permanently.

There are several important things to bear in mind.

  • While you are not making mortgage payments, you are still racking up interest on your remaining mortgage balance.
  • When the payment holiday comes to an end, your outstanding mortgage balance and mortgage payments will be higher than they were before the holiday.
  • Even where your lender agrees this temporary solution, your credit file will be affected – this in turn could affect your ability to get credit in the future.”

 

How to Take a Mortgage Payment Holiday
http://www.money.co.uk/article/1003348-how-to-take-a-mortgage-payment-holiday.htm