Christmas is coming
The goose is getting fat
Please put a penny in the old man’s hat
Or several pennies, please! Christmas is nearly here. There are very few of us that don’t enjoy the festivities, the family time, the gift-giving and many a delicious feast. But it all comes at a cost and the household outgoings in December spike dramatically.
Monthly mortgage repayments are often the biggest monthly outgoing – and so rather than borrow money to finance Christmas, could taking a break from your December mortgage payment be a good option?
What is a mortgage break?
Otherwise known as a mortgage holiday, a mortgage break is where you miss one or more mortgage payments by agreement with your mortgage lender.
Who can take a mortgage break?
It will really depend on your lender and the type of mortgage you have. Many mortgages are designed to be flexible and are very likely to accommodate a mortgage break.
Some lenders will consider a mortgage break, but only if you have overpaid your mortgage to a level that will adequately cover a payment break. And some will allow mortgage holiday, but not for (sometimes considered frivolous) events such as Christmas, however they will in more extreme circumstances including extended illness or job loss.
Are there disadvantages to taking a mortgage break at Christmas?
It should be said that apart from having your finances eased during the break, the benefits really stop there. Unless you’ve already overpaid, missing a payment doesn’t mean that you’ll never have to pay it - it simply means that you’ll need to pay it at a later date with all of the extra interest accrued.
So the answer to our question ‘Should I take a mortgage break at Christmas’ is not a straight forward one.
Your mortgage broker will be able to advise you on the best way to approach such instances. The ideal situation is that you start out with a mortgage that enables you to meet monthly repayments and enjoy annual festivities like Christmas without having to worry. A broker like Mortgage Search Go will look at your situation and lenders across the entire market and find the best possible lender and deal for you.
And we leave you with a word of warning. If for any reason you are seeking a mortgage break, please do speak to your lender first. They will not look favourably on a non-payment that hasn’t been agreed and your home may become at risk.
For whole-of-market mortgage advice, talk to us on 0844 69 333 60.
**your home may be at risk if you do not keep up repayments