Mortatage + Payment break

[thespecialon]

My bank offers facility to take payment break from my mortatage..I am seriously considering taking this for maybe about 12 months.
I qualily for TRS reflief as a FTB and am in year 2 of my mortatage.I believe I am a FTB for 7 years.

2 question re -payment breaks

- My mortatage is over 25 years so if I take a break of 12 months, all that will essentailly happen is it goes over 26 years? OR will there be lots more interest to pay?

Secondly - Will I lose out on a year of TRS payments ? Like will revenue count my year of mortatage break as a year twoards my time as a First time buyer?


Mortatage details are - 135,000 over 25 years at ECB + .95 , Currently in Year 2 of mortatage

 

[LDFerguson]

Typically, interest for the payment break period is rolled up and added to the loan balance. At the end of the payment break, monthly repayments are recalculated to repay the loan within the original term.

Two things to look out for: -

• Many lenders don't offer a payment break for longer than 6 months.
• Make sure that you don't forfeit your good tracker rate by taking a break.