• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Best French Mortgage

+44 (0)20 7193 7843

  • Home
  • About French Mortgages
    • Mortgage Types
      • Second Home Mortgages
      • Buy To Let Mortgages
      • Renovation Mortgages
      • Refinance Mortgages
      • Leaseback Mortgages
      • Home Business Mortgages
      • SCI Mortgages
      • Business Mortgages
      • French Rent To Buy
    • Mortgage Products
      • Repayment Mortgage
      • Interest Only Mortgage
      • Hybrid Mortgage
      • Buy to Let Mortgage
      • Renovation Mortgage
      • Equity Release Mortgage
      • Business Mortgage
  • Mortgage Quote
  • Mortgage Rates
  • Mortgage Calculator
  • Advice
    • Advice on French Mortgages
    • Key Steps To Getting A French Mortgage
    • Frequently Asked Questions
    • Ten Must Knows
    • COVID-19 French Mortgage Holiday
    • How Much Should I Pay For My French House
    • Property Insurance
    • French Property Legal Advice
    • French Property Survey
    • Foreign Exchange
    • Foreign Exchange Planning
    • Viager Investment
    • Viager Sales
    • Yacht Leasing
    • Consumer Guide
    • How to Choose a Broker
    • Our Customer Charter
    • Contact Best French Mortgage
  • Knowledge Base
    • KB Search
    • Privacy Policy
    • Terms And Conditions
    • About Best French Mortgage
    • Press
    • Sitemap

Mortgage Payment Holiday

Home » Mortgage Payment Holiday

20/08/2018 By

Created On20/08/2018
byBFM-Editor
You are here:
  • KB Home
  • French Glossary
  • Mortgage Payment Holiday
< Back

Some mortgages allow you to take a payment holiday during which your mortgage repayments are suspended.

The request to take a payment holiday must always be made to the bank in advance and in writing.

If you unilaterally take a mortgage payment holiday without the French bank’s prior approval the missing payment will be seen as unauthorised, putting you in default and possibly lead to you being placed on the Banque de France default list.

The life insurance premiums must continue throughout the payment holiday.

The capital outstanding will not change and the outstanding interest will accrue to your mortgage account.

Once the payment holiday is complete your monthly repayments will have to rise.

Why Take One?

Sometimes life becomes temporarily more expensive.

If you are having a pool installed at your French house you might request a payment holiday to leave your Euro funds free to cover the costs of the pool.

If you have to pay for a lavish wedding your cashflow might be quite tight before the big day. A payment holiday would give you some breathing space at a lower cost than taking out another loan.

Remember that any request for a payment holiday has to be approved in advance by the lender.

How Many Can I Take?

Just as in real life, you can’t spend all your time on holiday.

The original loan offer will indicate whether the mortgage terms include the possibility of a payment holiday, the qualification period and the minimum gap between holidays.

You cannot usually take a payment holiday at the start of the mortgage, unless you are waiting on a new-build.

If the bank requires a one or two year gap between each payment holiday the remaining mortgage term limits the total number of potential holidays.

And you have to have a genuine reason to ask for a payment holiday – the swimming pool finance will only work once.

About BFM-Editor

Primary Sidebar