MORTGAGE PAYMENT HOLIDAY - DID YOU KNOW THE TRUE COST?
Since March 2020, over 2.6 Million Mortgage Payment Holidays have been approved in the UK.* The vast majority of these have now come to an end and borrowers have to restart paying the extra costs. But how much are these extra costs? You probably only know your new monthly payment!
Did You Know?
The Total Cost of Your Holiday - not just the new payment?
You might not be able to repay your mortgage at the End?
How much is added that increases hidden costs?
Future rate rises will increase the Cost of Your Holiday?
You might not be able to re-mortgage to a better deal?
Making some payments would have saved you money?
GET YOUR FREE PAYMENT HOLIDAY REPORT.
Complete our One Minute Cost Check
Total Overall Cost of your Mortgage Increases
You Might Not Be Able To Repay Your Mortgage At The End
Interest Only Mortgage - If you remain on Interest Only after the holiday to keep your new payment as low as possible, you will not be paying off the arrears added to the mortgage. When the time comes to repay the mortgage, the balance can be thousands of pounds more than you expected.
Your Life Insurance Might Not Payout Enough To Repay The Mortgage If You Die
Any life insurance that you took out to pay off the mortgage in the event of your death will have been set to payout a specific amount. Usually, that amount would track the balance of your mortgage so whenever you die, you have the security of knowing the mortgage is paid in full.
You Might Not Be Able To Re-Mortgage (or pay much more to do so)
Re-mortgaging to a cheaper deal can be a great way to save money. This generally happens when a discount or fixed rate period ends. A very important factor comes into play when re-mortgaging - Loan To Value (LTV). This is a figure which shows the amount you want to borrow as a percentage of the value of your home.
Future Rate Increases Mean Your Holiday Costs More
Your lender provided you with the new monthly amount after the holiday. This new payment includes paying off the unpaid amounts added to your mortgage. When interest rates change in the future, so will the amount you are continuing to pay for your holiday. Nobody knows what interest rates will do in the future so the total cost of taking your holiday is actually unknown. The figure we provide uses current rates.