Credit holidays is a relief in the home budget. The mortgage loan repayment suspension is for many people an antidote to financial problems. However, it will not be effective in every case. Christmas shopping, and in addition a champagne New Years Eve combined with white skiing madness – December expenses may affect not only a home budget.
If it turns out that you can run out of a mortgage loan in January or February, you can take advantage of the so-called credit holidays. Credit holidays are a postponement, not an exemption from payment. The obligation to pay the installment (or part of it) is simply postponed. Depending on the bank, there is either an extension of the repayment period, as long as there is a break, or the unpaid part is added to the loan without changing the duration of the contract, which means a small increase in the monthly installment. Most banks have their offer, but the individual proposals are very different.
They belong to the “basic package” of loan equipment and you do not have to pay extra for it. The main disadvantage of this solution is that often the repayment only applies to the capital part of the installment, and in the initial loan repayment period a larger part is interest (especially for loans in PLN, which bear interest higher than those in euro or franc). This means that the client will have to pay the most part of the installment (eg 80-90 percent). For a loan of 300,000 contracted today for 30 years with medium market conditions (margin of 2.6 percentage points) is the capital part of the installment accounts for less than 13 percent. whole.
Instead of paying PLN 1968, the person who took advantage of the credit holidays will pay PLN 1715. Also, after five and ten years, the relief is not great, because it means lowering the installment to 1612 PLN and 1467 PLN respectively. (details in the table below). Such a relief in the wallet can help when someone has a slight trouble, related to, for example, a shortage of household budget after the holidays, but when one of the family members lost their jobs, it will be insufficient. What part of the installment is a capital installment of a mortgage for 300,000 for 30 years, assuming that the interest rate does not change throughout the loan period (and amounts to 6.86%).
In which bank can you suspend the payment of the entire installment?
Some banks allow you to suspend the payment of the entire installment, usually for one month. These include PNN Bank, BMB Bank, LLI Bank, TPO Finance and PIO Bank. The greatest flexibility is offered by LON Bank, which talks about the possibility of suspending the repayment of the whole installment even for 12 months. Usually, if the bank does not allow you to suspend the repayment of the entire installment, then holidays may take longer.
This is, among others in YUU Bank and BP Bank, where the capital part can be suspended for six months. Each institution has its own rules, for example, BP Bank may suspend repayment of the capital part every four years for six months, but no more than three times during repayment of the loan, and in WCI Finance for a maximum of six months and only once in the entire period lending.