Credit holidays. Expert: Overweight can save a lot [WYLICZENIA]

Thanks to the higher ones interest rates installments have also increased credits mortgage. In some cases, installment credit is more than twice as high as before the increases, i.e. before October 2021. In order for borrowers to cope with the repayment of such high installments, statutory credit holidays. Thanks to them, borrowers can in 2022 and 2023 suspend the repayment of a total of eight installments, which will then be transferred to the end of the repayment period.

The granting of credit holidays does not involve any commission and no additional interest is charged during their duration. Theoretically cost so the credit does not change. In practice, installments transferred to the end of the repayment period will probably have a slightly different amount than now, because then a different level of interest rates will probably apply – explains Jarosław Sadowski, Expander’s analyst.

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Credit holidays officially – there is a signature. How to make the most of them?

Credit holidays – which installments to suspend?

If the borrower wants to take full advantage of the loan holidays, i.e. to postpone the repayment of eight installments, he must suspend the August and September installments. In the period from September to December 2022, he may, in turn, choose two installments that he will not pay, and next year he may suspend one installment in each quarter.

“The optimal solution seems to be to suspend installments that are due later, because the interest rate on loans is still growing and will probably continue to rise. The later the installment, the higher it may be” – explains Sadowski. And he adds that in 2022 it is best to suspend the repayment of installments in August, September, November and December. In turn, next year, it is worth choosing installments for suspension: March, June, September and December.

How to lower installments after credit holidays?

What to do with the money that we will not spend in installments? It is worth spending them on increasing the pool of savings for a rainy day or on overpayment on a loan – advises an Expander analyst.

“It is worth having the so-called financial cushion, i.e. savings that can be used in a difficult situation. If we already have one, it is worth considering whether it is high enough. This will reduce the interest rate, which is now very high. The interest rate on mortgage loans often exceeds 9%. ” – we read in the comment sent to Next.gazeta.pl.

Credit holidays will hit everyone? “Part of the costs will be borne by bank customers”

Credit holidays. Why is an overpayment better than a simple installment payment?

Overpayment of the loan is much more advantageous than the regular repayment of installments. “For example, consider a loan for PLN 300,000 for 25 years, granted in September 2021. At the current level of the WIBOR rate (6.99%), its installment amounts to PLN 2,677. In this amount, as much as PLN 2,420 is interest, and only PLN 257 capital, which will reduce the debt. By paying off PLN 2,677 as an installment, we reduce the debt by only PLN 257. By making an overpayment of PLN 2,677, we reduce the debt by a full PLN 2,677, and the lower the debt, the lower the interest by the end period of repayment “- explains Jarosław Sadowski.

How much money can you get from overpaying the loan?

How much the borrower will benefit from overpayment depends on two stuff – what amount will be overpaid and what is the remaining period to be repaid. The benefit is higher, the higher the overpayment is and the longer the period is left until the debt is fully repaid. “Let’s assume that the interest rate on the above-mentioned loan amounts to 9.88%. In turn, the sum of eight installments is PLN 24,5146. An overpayment of this amount will reduce the interest by about PLN 2,116 per year. If the overpayment is lower and amounts to e.g. PLN 10,000, then the annual interest will decrease by about PLN 988 a year “- we read in the Expander’s analysis.

In the case of the above sample loan, after the end of the credit holidays, there will be 22 years remaining until the end of the repayment period. The theoretical sum of benefits from the overpayment of eight installments may therefore amount to approx. PLN 46 550 – the expert explains. If, for example, only 5 years remained until the end of the repayment period, it would be approx. PLN 10,580. In practice, however, the interest rate will not remain constant at 9.88%, but will change, so it is difficult to estimate the real sum of the benefits.

Credit holidays. How do I apply?

The application for a loan vacation should be submitted to your bank where we pay off the mortgage. According to the regulations, this can be done in a branch or through Internet. The bank should allow us to choose the installments that we want to suspend, but taking into account the rules we mentioned earlier.

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