taking a break in mortgage repayments

J

JEMOL

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Hi
Can you tell me is it possible to take a break in mortgage repayments ie stop paying monthly for a 6 month period. Is this something that the banks would allow and if so what if any would be the charges or does it just mean that your repayments would be extended by 6 months?
Thanks
 
I just did it recently with ICS, they allow 4 mortgage breaks of 3 months each over the lifetime of the mortgage, I just downloaded and posted the form. Repayments will be recalculated at end of the three months so the term remains the same. Don't know about other banks or whether six months would be a possibility though!
 
I'm with the Ulster Bank for my mortgage and their policy is you can only take one payment break for the life of your mortgage, the max is six months and you have to put the request in writing to them explaining why you want/need the break...

Good Luck
 
If you take a mortgage break then the interest accruing while the capital sum remains static (i.e. not reducing) will be capitalised and added to your mortgage amount. Basically if you take a break then the mortgage will cost you more in the long term than if you don't. The term and/or mortgage protection life assurance cover may also be affected.
 
JEMOL said:
Hi
Can you tell me is it possible to take a break in mortgage repayments ie stop paying monthly for a 6 month period. Is this something that the banks would allow and if so what if any would be the charges or does it just mean that your repayments would be extended by 6 months?
Thanks
Click to expand...

The interest you miss out paying during the break is added onto the mortgage and then you end up paying interest on that over the life of the mortgage. It could cost you a good bit over the l20 - 30 year ength of the mortgage - Maybe a short term personal loan is worth considering?
 
Thanks Irishlinks, is ther eany way I can calculate what this might cost me?
 
Is it possible to change to interest only repayments instead to offset any unpaid interest being added to the capital and costing much more over the duration?

Just a thought.
 
NC6000 said:
Is it possible to change to interest only repayments instead to offset any unpaid interest being added to the capital and costing much more over the duration?

Just a thought.
Click to expand...

Yes - but this would probably not reduce the OP's monthly outgoings by as much as they need.
It would be helpful if Jemol could throw more light on the circumstances and amounts involved.
 
Due to personal circumstances it may be necessary to go this route with the bank for 3-6 months.
Monthly repayment is 1200 which includes around 600 in interest and there is approx 15 years left on the mortgage.
Hope this helps.
 
Angrygirl said:
I'm with the Ulster Bank for my mortgage and their policy is you can only take one payment break for the life of your mortgage, the max is six months and you have to put the request in writing to them explaining why you want/need the break...

Good Luck
Click to expand...

Not as far as i know. Once you've made 12 consecutive payments you can take another holiday.
 
Just out of interest does anybody know what the situation is with an EBS mortgages and payment breaks?
 
They don't offer a 'mortgage payment break' as such, but they are willing to discuss the need to hold-off on payments temporarily. You need to give them a call and explain why you would want to defer payments. It literally is a deferral of payments so, assuming you might continue with repayments as normal after the deferral, these are added on at the end and the interest continues to be added during the pause.

They will suggest that you do make whatever payment you can un the meantime, so I imagine that this is something that they offer customers on the basis of temporary hardship as described in individual circumstances.

As is the case with every mortgage provider, they would very much prefer that you came to them with news of your difficulty rather than them having to chase you cos you missed payments.
 
In some circumstances it may also be an option to extend the term of the mortgage in order to reduce the monthly outgoings. This will cost more in the long run (and may also require alternative/additional mortgage protection life assurance) but might be another option to consider to help reduce cashflow pressures.
 
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