3 month mortgage holiday

[parn52]

Hi

Struggling to get through to my bank.

I’m after a rough figure for the price increase of me monthly payment after the holiday

Out of my monthly payment I get charged around £175 interest.

So is it safe to assume

Monthly payment x 3 =1200
Interest £175 x 3 = 525
£1725 divide by 25 years = £69
£69 divide by 12 = £5.75

So an extra £5.75 per month?

[DavidY]

I think perhaps you should consider the addition over the remaining term of the mortgage from after the mortgage break - likely to be less than 25 years

Edited by DavidY on Saturday 21st March 11:02

[Sarnie]

parn52 said:

Monthly payment x 3 =1200
Interest £175 x 3 = 525

Doesn't your £1200 already include the interest?

[AMST09]

Surely it just adds 3 months on at the end of the mortgage?

[Sarnie]

AMST09 said:

Surely it just adds 3 months on at the end of the mortgage?

No..........the three months payments get added to your balance which means you pay interest on the missed payments for the rest of the term, also meaning increased payments when your payments resume.......

[parn52]

Sarnie said:

Doesn't your £1200 already include the interest?

Yes that’s correct, but I was under the impressions the balance would still Be gaining interest each month?

[Sarnie]

parn52 said:

Yes that’s correct, but I was under the impressions the balance would still Be gaining interest each month?

It would but you are adding each months interest twice......once within the monthly payment and then each lot of £175 you are adding.........