What are the impacts of Mortgage Holiday?

K

kaza

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Hi All,

I will be going to maternity leave this year and have been adding up the costs. We are saving away and should have enough to cover our costs while I am on maternity leave.

However, if we took a mortgage break (early next year) it would mean I could take a longer maternity leave. I have looked up PTSB website and it says you can take a 3 month mortgage holiday. Now does anyone know is this just for new customers or all customers?

I have added up the cost and it should increase my repayments by about €15 per month afterwards - but if there any other implication of doing this that I am missing?

Thirdly, if it is open to existing customers, is there any criteria you need to meet to get it?

Thanks
 
I think that you will find that you have an entitlement in your mortgage contract to two holidays of 3 months each. But check your mortgage documenation.

It has been suggested elsewhere that taking such a holiday may affect your credit rating. Which could be critical when you want to move from ptsb as soon as you can.
 
It's available to all customers but I think you have to had the mortgage for 3 years and not be in arrears. I rang them out of interest as I was going to take a holiday for the sake of it when the SVR was over 6% and thought that I would benefit if the SVR was alot lower down the line as the mortgage would be lower. However on the application it mentions interest and your credit rating! I'd speak with PTSB about these if I were you. I didn't go any further about it for those reasons plus I don't trust banks who never seem to lose!
 
Kaza, only yesterday we received a letter from PTSB approving a 1 month holiday at the end of June. The rule for existing PTSB customers is that you can take 3 months holidays every 3 years. We took a 3 month holiday in 2009, have paid our mortgage since then, i.e. for 36 months and are now entitled to take holidays again. KBC knocked us back in 2010 when we tried to switch to them as they didn't approve of our 3 month holiday in 2009.
 
Jkrnax said:
Kaza, only yesterday we received a letter from PTSB approving a 1 month holiday at the end of June. The rule for existing PTSB customers is that you can take 3 months holidays every 3 years. We took a 3 month holiday in 2009, have paid our mortgage since then, i.e. for 36 months and are now entitled to take holidays again. KBC knocked us back in 2010 when we tried to switch to them as they didn't approve of our 3 month holiday in 2009.
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hi,

out of curiosity, do you know roughly how much in extra interest your 2009 3 month holiday cost you?

How much extra will the 2012 3 month holiday cost?

just wondering in case I ever go down that road.
 
Steiner,

Though I haven't yet received an updated letter from PTSB, based on my home mortgage calculator, it will cost an extra €5 per month for this 1 month holiday and €15 for a 3 month holiday.

I made a lump sum payment of €6k in 2009 once I found a new job, so this more than offset the interest that was added to the principal whilst we took the 3 month holiday.
 
I am in no position to move banks anytime soon, probably in about 140K negative equity, so not overly concerned about the holiday impacting my ability to switch as it will be years before I can move lenders I would say. Although in saying that I assume after a number of years of the actual holiday period it would not matter anymore when applying to move mortgages??

Jknax, can I ask you was it straight forward enough applying for the holiday? I've had to fill in a complicated financial statement before for another bank (another mortgage), to extend the number of years on the mortgage and it was a pain in the backside - I think if I'd to fill in another form like that it would put me off.
 
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Kaza, it was very straight forward for me. I had to simply identify which month I wanted the holiday for on the application form and sign it. I applied in April and we didn't get a written reply until yesterday when the letter arrived confirming the break for June. The impression I received was that as long as you have not taken more than 3 holidays in the previous 36 months then there is no issue with taking a holiday.
 
google tsb mortgate holiday, click on first link, fill out the form and send to TSB, Dublin if with PTSB
 
The T&Cs for the payment holiday state that the LTV of the mortgage must be below 90%
 
kaza said:
Really! Wonder how strict they are on this? I suppose I'd have to go in and ask to get an answer.
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I wondered that myself. I would just apply rather than draw attention to the LTV. I'd be supprised if they checked. Surely there would be a valuation required to assess the LTV accurately anyway.

Another way round getting a break from the mortgage is to apply for their 'skip months' option which allows you to skip 2 payments in any 12 month period. The payments are increased for the remaining 10 months to cover this. You can just cancel the arrangement though and payments will return to normal. You will not see anything come off the principle though until the account is back on target.
 
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