Using a Payment holiday during maternity leave

Posted on 19 May 2008

I cant afford to make over payments but I need a mortgage where I can take payments holidays as we would like to start a family in the next few years and could not afford to pay our mortgage whilst I would only be on standard government maternity pay can you suggest a good company?

Hi Diane,

The only two that I am aware of are Halifax (you can break for up to 6 months) and Coventry (up to 3 months).  Payment holidays are very much subject to LTV and obviously good conduct of the account.

 The conditions for the Halifax are: 

"A break from the mortgage payment is available for up to six months even if no overpayments have been made, subject to the total debt at the end of the payment holiday not exceeding 80% LTV. This can be taken all at once, or a month at a time. Suspended payments are rolled up and added to the mortgage balance. A new monthly payment will be calculated at the end of the payment holiday to take into account the suspended payments."

 

Notice that your interest is rolled up over this time, and adds to your overall cost later.

 

 

 

 

 

Category: Overpayments, Payment Holdays, underpayments, Borrowback

 

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol Limited. All comments are made in good faith, and John Charcol Limited will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

Question