Mortgage payment holiday

[legal girl]

Does anyone know whether, theoretically, you can take a payment holiday on a two year fixed rate mortgage and would there be any penalties? We'd only want a one, maybe two month break.

[rockyracoon]

Theoretically it's possble but it depends on your mortgage, best to give the lender a call and ask them.

[gingejbee]

It depends on the terms and conditions of the particular mortgage package that you've got. You do need to get that from your lender, as above.

[madmaggot]

Unless this is specifically allowed in your agreement you will be classed as 'in arrears'. Most providers will start to take action after 3 months of non-payment so whatever you do don't just decide not to pay for a couple of months. Speak to your provider.

[factor-fiction]

It's worth checking the conditions- some mortgage companies allow holidays, underpayments and overpayments. I think it's less likely to be available on a 2 year mortgage than on a long term mortgage but some allow it- my 3 year mortgage allows it free of charge (other than the accrual of interest for underpayment).

[factor-fiction]

But you should ask first before considering not paying an instalment. Mortgage providers can be understanding if they are consulted