ButtermilkJa
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Has anybody any experience of what would UB would regard as an acceptable reason? I have been paying my mortgage for over 3 years without any problem. I have a car loan of €7k which I would like to pay off asap as I could really do with freeing up the €360 p/month it's currently costing me. Taking a 6 month break would enable me to clear the loan in full.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
Technically, it is a good idea... but with a significant caveat.Would this be an acceptable reason to take a break in the mortgage? If so, would it be a good/bad idea to do this (in terms of how much it would cost me in the long run. Still 30-odd years left on mortgage!)?
However, if you leave the excess on the mortgage (e.g. the extra six months interest) over the entire life of the mortgage (the 30 odd years) you'll end up paying a significantly higher amount of interest in the long run.
They she mention that they also increase the loan amount by the extra six months interest?They said when i asked about it that they just add the 6 months onto the end of the mortgage - easy as that she said
No nothing like that was mentioned at all.. she just said the six months that i would not be paying would be added on at the end, i asked was that it no other costs and thats when she said yes its as easy as that....They she mention that they also increase the loan amount by the extra six months interest?
I've very much open to correction. This might not be the case, judging from the response you got it appears not to be... although I'd like to see this in writing if I were to be going down that route.No nothing like that was mentioned at all.. she just said the six months that i would not be paying would be added on at the end, i asked was that it no other costs and thats when she said yes its as easy as that....
If thats the case i'm glad they didn't give it to me now
Sorry, missed this post as I was making a previous reply.I'm not sure I fully understand this - is a 6 month break really going to accrue significant additional interest? Maybe I've misunderstood how they calculate/apply this - how does it work (generally speaking) and can you give an example of the degree to which the borrower might be 'penalised'?
Crossed with Angrygirl - question maybe partially answered!
Yes, it certainly is a better deal. You're getting 6 months interest free so a brilliant deal (e.g. even just letting inflation take a bite out of it will be helping). It is worth looking at the other additional costs (re life insurance etc.), but probably fairly negligable in the grand scheme of things.If it's true that they just add the 6 months on at the end of the term is that not better than capitalising the 6 months of interest and adding that on?
I agree, I would certainly not like to pay the additional 6 months interest (i.e. the car loan) off over a 30 year period (the interest at the moment is closer to ~€900p/m)....
Whether the total amounts are "significant" is a matter of opinion, but I'd certainly prefer to keep every possible cent in my pocket and out of the banks!
Do you reckon I would even need to get that changed at all? At the moment I'm paying ~€19 p/m for mortgage protection and that's all.Yes, it certainly is a better deal. You're getting 6 months interest free so a brilliant deal (e.g. even just letting inflation take a bite out of it will be helping). It is worth looking at the other additional costs (re life insurance etc.), but probably fairly negligable in the grand scheme of things.
No idea on that one.Do you reckon I would even need to get that changed at all? At the moment I'm paying ~€19 p/m for mortgage protection and that's all.
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