Mortgage holiday
Discussion
Ok, please do not judge.
Following my redundancy last year I'm having a really tough time meeting my bills. I'm hoping that now I'm back in work, my lender might be able to give a small period of grace to help sort out my finances a bit. I've never done it and I don't know anyone who has so, here are some pointers about the situation.
1.) I'm now back in work for the last six months and haven't missed a payment over the last 12 years including during the time off work for my injury as well as the redundancy.
2.) Its an interest only mortgage (yeah, yeah, I know.)
3.) They are not a major high street lender.
4.) I didn't tell them I got made redundant at the time.
So what would be the consequences and implications? Being honest I'll be close to bouncing a payment next month so I do need some help.
Cheers.
The Toad
Following my redundancy last year I'm having a really tough time meeting my bills. I'm hoping that now I'm back in work, my lender might be able to give a small period of grace to help sort out my finances a bit. I've never done it and I don't know anyone who has so, here are some pointers about the situation.
1.) I'm now back in work for the last six months and haven't missed a payment over the last 12 years including during the time off work for my injury as well as the redundancy.
2.) Its an interest only mortgage (yeah, yeah, I know.)
3.) They are not a major high street lender.
4.) I didn't tell them I got made redundant at the time.
So what would be the consequences and implications? Being honest I'll be close to bouncing a payment next month so I do need some help.
Cheers.
The Toad
Toad
Firstly, good on you for keeping up the payments in the tougher times.
There's certainly no harm in asking your lender, explaining your situation. Of course, when you take a payment holiday, if they'd permit that, you're then accruing interest on interest, so to speak. Make sure you know how much that would add later before you ask them. They might rank up the interest rate on your loan.
I don't know why more UK lenders wouldn't permit a 'payment holiday'. I live in Luxembourg and most Luxembourg, Belgian, German & French lenders permit this; it makes money for them longer term.
Firstly, good on you for keeping up the payments in the tougher times.
There's certainly no harm in asking your lender, explaining your situation. Of course, when you take a payment holiday, if they'd permit that, you're then accruing interest on interest, so to speak. Make sure you know how much that would add later before you ask them. They might rank up the interest rate on your loan.
I don't know why more UK lenders wouldn't permit a 'payment holiday'. I live in Luxembourg and most Luxembourg, Belgian, German & French lenders permit this; it makes money for them longer term.
The Hypno-Toad said:
Ok, please do not judge.
Following my redundancy last year I'm having a really tough time meeting my bills. I'm hoping that now I'm back in work, my lender might be able to give a small period of grace to help sort out my finances a bit. I've never done it and I don't know anyone who has so, here are some pointers about the situation.
1.) I'm now back in work for the last six months and haven't missed a payment over the last 12 years including during the time off work for my injury as well as the redundancy.
2.) Its an interest only mortgage (yeah, yeah, I know.)
3.) They are not a major high street lender.
4.) I didn't tell them I got made redundant at the time.
So what would be the consequences and implications? Being honest I'll be close to bouncing a payment next month so I do need some help.
Cheers.
The Toad
Just phone them up and be 100% honest. They will appreciate you phoning them in advance of the potential missed payment.Following my redundancy last year I'm having a really tough time meeting my bills. I'm hoping that now I'm back in work, my lender might be able to give a small period of grace to help sort out my finances a bit. I've never done it and I don't know anyone who has so, here are some pointers about the situation.
1.) I'm now back in work for the last six months and haven't missed a payment over the last 12 years including during the time off work for my injury as well as the redundancy.
2.) Its an interest only mortgage (yeah, yeah, I know.)
3.) They are not a major high street lender.
4.) I didn't tell them I got made redundant at the time.
So what would be the consequences and implications? Being honest I'll be close to bouncing a payment next month so I do need some help.
Cheers.
The Toad
As per the previous post, any payments missed will usually be added to the balance which in theory means that once the payments start again, they will be slightly higher than they previously were. Therefore they will ask you how you will be able to meet the higher payments, if your struggling right now.
The best advice I can give you is to do your best to not miss the mortgage payment. It's the WORST thing you can do in regards to your credit file and when you want to move the mortgage to another lender. I would seriosly look at every other outgoing you have and look at ways of cutting it.
Good luck!
It will depend on what type of mortgage you have as well.
A few years ago i wanted one with Santander but was told the mortgage i was on made me unelligible for a payment holiday. It was a typical fixed rate at the time., although the same with Nationwide a few years before that was fine.
A few years ago i wanted one with Santander but was told the mortgage i was on made me unelligible for a payment holiday. It was a typical fixed rate at the time., although the same with Nationwide a few years before that was fine.
I enquired about this last year.
I was made redundant, and so was the wife. She found a 1 year contract job, but at a reduction of 45% in salary.
Muddled through so far...
Spoke to our advisor, who spoke to contact at Abbey. They would accept grace if we went travelling for a year, but no through redundancy. Go figure!
Suppose it's down to each lender.
I was made redundant, and so was the wife. She found a 1 year contract job, but at a reduction of 45% in salary.
Muddled through so far...
Spoke to our advisor, who spoke to contact at Abbey. They would accept grace if we went travelling for a year, but no through redundancy. Go figure!
Suppose it's down to each lender.
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