Mortgage Maternity Holiday

[kafs78]

HI

I spoke to my Mortgage provider and i didnt realise i was entitled to a 6 month payment holiday, once i provide my MATB1 form.

Excellent for helping with money worries over xmas/NY etc

 

[ummar]

Thanks for sharing - didn't realise this possibility was out there!

So what happens after the 6 months?

 

[ummar]

Found this online: https://www.thisismoney.co.uk/mortg...icle.html?in_article_id=448030&in_page_id=109

 

[MrsEngland]

Is it only certain mortgage providers that allow this?

 

[miss h]

Just did a quick look - It does depend on you provider, you have to have been paying a mortgage for a year and it all depends on the equity of your home (if you are in negative equity then they won't allow this).

Wow - never even thought about this - If my provider says yes then that means I can take off longer than the planned 6 weeks (which is all we can afford thanks SMP - my employer has no additional maternity package)!!! Yey

 

[MrsEngland]

We are with the woolwich and pretty sure we have positive equity as we paid cash for 60% of our house and have just been with them for a year...will defo have to look into this!

 

[Louppey]

Does anyone know if Chelsea offer this? Can't find our initial terms & conditions booklet and they're closed now so I can't ring them!!

 

[kafs78]

im with North Rock..

The girl told me as long as i hadnt had a payment holiday recently - which ive not- then there should be no probs.

Interest still accrues over the 6 months - however this is added across the reamining term time, so you monthly payments will SLIGHTLY increase.

Im DEF going to do it.....

 

[Blondie007]

Hi all, I have worked for a high street bank for 12 years now and was a mortgage adviser for a few of those. Nearly every lender does this for you as long as you are not in any arrears and have not used any payment holidays before. They are really good but be careful.

When you don't make a payment, the interest is added on to the debt and then you end up paying interest on it - just like kafs78 says. It means your debt increases throughout the payment holiday term.

Also, make sure that the bank will not let this affect your credit rating - I can't remember the exact details about this!

However, as long as you make an agreement with them (and do it well in advance of when you need it as I think they need at least one whole months notice before the first payment holiday), then it can be saviour for those of us with poor maternity pay.

Good luck to you all,

 

[kafs78]

Def makes life that little bit easier eh?

 

[MrsEngland]

certainly would!

 

[emmalouise079]

I enquired about this with hsbc and they said they didn't offer payment breaks Boooo!