Main site > MoneySavingExpert.com Forums > Essential Money > Mortgages & Endowments > Mortgage Payment Holiday with Santander? (Page 1)

IMPORTANT! This is MoneySavingExpert's open forum - anyone can post

Please exercise caution & report any spam, illegal, offensive, racist, libellous post to forumteam@moneysavingexpert.com

  • Be nice to all MoneySavers
  • All the best tips go in the MoneySavingExpert weekly email

    Plus all the new guides, deals & loopholes

  • No spam/referral links
or Login with Facebook
Mortgage Payment Holiday with Santander?
Closed Thread
Views: 20,610
Thread Tools Search this Thread Display Modes
# 1
vm1307
Old 23-06-2010, 12:14 PM
MoneySaving Newbie
 
Join Date: Aug 2007
Location: Hampshire
Posts: 6
Default Mortgage Payment Holiday with Santander?

Hope this is in the right place

I'm newly on maternity leave and, having looked at our finances, we're worse off than we'd expected one way and another (long story that I'm trying to cut very short!) and we just cannot afford to pay our mortgage at its current rate.

I phone Santander months ago to request to go to interest only for the duration of my maternity leave (about 6 months) but I fell between to poles really; I hadn't deferred on my payments (so effectively I was too well off!) BUT my personal debt is too high to consider interest only (so, at the same time, I'm too skint?!) and I was left with the recommendation of "speak to the CAB, arrange and IVA and then come back to us".

I wasn't AT ALL keen to follow that route unless completely necessary which, at the time, I didn't feel it was. The trouble is, if we don't sort something out with our mortgage then it WILL become necessary

I REALLY don't want to get myself into the debt management plan/IVA route unless absolutely necessary and - if we can get through the next 6 or so months - then it isn't necessary....

My question is this really: Does anyone know if Santander would consider a payment holiday of a few months? I don't really understand all my options and am trying to research them *Before* I phone up this time (as last time I felt totally confused and railroaded by the time the call was over and wished I'd researched first so I could ask the right questions instead of being fobbed off).

Does anyone have experience of this? As I understand it mortgage payment holidays are meant to be for short term reductions in circumstances (which, obviously, maternity leave is) but I know some banks are readier to agree than others.
vm1307 is offline
Report Post
# 2
beecher2
Old 23-06-2010, 12:16 PM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Dec 2009
Location: Glasgow
Posts: 2,634
Default

I think you should go onto the debt free wannabee forum and post a Statement of Affairs to get help in saving money elsewhere in your household budget. Authorised arrears should always be the last port of call.
beecher2 is offline
Report Post
The Following User Says Thank You to beecher2 For This Useful Post: Show me >>
# 3
opinions4u
Old 23-06-2010, 12:37 PM
PPR
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Jan 2006
Posts: 19,146
Default

Beecher's suggestion is spot on.

It is rare that a payment holiday is a contractual right, and when push comes to show it is basically borrowing money (your missed monthly payments) and adding it to your mortgage debt. But if Santander don't want to play ball (and they don't have to) you need to find other ways to improve income or reduce outgoings.

The only way you're going to find out for sure is by calling Santander. Don't play on the "I'm skint and can't afford the mortgage" line, simply state that you're on maternity leave and a payment holiday would be great. If they say "yes, no problem" you then need to ask them what the implications are for your credit file. Some lenders treat it as an underpayment of mortgage whereas others don't.

Reading between the lines, your post implies that you have other debts (e.g. loans or cards). While in a perfect world you should ensure all payments are made for the full amounts and on time, if you are in a position that requires something to be missed you need to prioritise your commitments.

e.g.

Mortgage is a priority commitment as you could lose your house (unless the payments are missed as part of a payment holiday).
Council tax is a priority commitment as you could go to jail.
Credit card debt is not a priority commitment, as a wrecked credit file for a few years is the worst that can happen.
Buying newspapers, maintaining Sky, shopping in Waitrose, running two cars etc are not priorities.

So, as suggested above, I'd get over to the Debt-free Wannabe part of the forum and identify ways of squeezing some extra leeway out of your income and outgoings. And make sure you are claiming all the benefits that you are entitled to.

While it might be a drop in the ocean, here's a few suggestions to help as well:

1) Register with a survey site like www.valuedopinions.co.uk or www.pineconeresearch.co.uk or www.pureprofile.com. I earn about 100 a year in Tesco vouchers and luncheon vouchers this way.
2) Register with a cashback site like www.topcashback.co.uk and review all your utility bills and see if you can get (a) cashback and (b) cheaper outgoings. This is worth 100 a year to me.
3) Make sure you are collecting loyalty points if you shop at stores like Boots, Tesco or Sainsbury. 150 a year. (don't spend more just to get points though!).
4) Review anything that involves a monthly outgoing and see if you can reduce it with current provider, get it cheaper elsewhere or remove it (e.g. mobile phone, Sky, gas, electricity, landline, home insurance, internet etc). Could losing a 45 a month mobile phone contract and replacing it with a 20 payg phone that you only use for incoming calls help?
5) Reduce car use. Consider selling a car if you have more than one.
6) If you have a partner who buys lunch at work, switch him over to home made sandwiches! Instead of a 60p can of Coke from the vending machine he can drink water for free!
7) Cut out visits to Starbucks.
8) Register for any free baby offers with the various supermarkets.
9) Check out sites like www.hotukdeals.com for freebies.
10) Dont' buy desserts, biscuits, cakes etc at the supermarket. Own brand basics orange juice is half the price of Del Monte.
11) Go food shopping after eating, not before (this is shown to reduce spending by 20%).
12) Go shopping with a friend and share bogof offers!
13) Turn off all lights, TVs, dripping taps etc off when they're not needed.
14) Make sure you have an evening committed to entertainment - e.g. a night in playing games or watching a movie - build it up as a "big thing" and a treat to each other. It costs nothing!
15) Set an evening aside each week to review the finances and clarify where every penny has gone (keep receipts to help do this). You'll be amazed at what people waste their money on. Perhaps build a forecast ahead for spending so you can see where your money will go in future.
16) Fill up at the cheapest petrol station you pass and don't pick up a bar of chocolate when you pay. www.petrolprices.co.uk will tell you where is cheapest.
17) Ensure you get invited round to local in-laws, parents and friends for meals to keep your costs down.
18) Review every "premium" brand you buy and consider economy brand or other cheaper alternatives.
19) Review what you can buy with Tesco Clubcard vouchers or Nectar points. Can you get better value on car servicing, breakdown cover or even a treat of a meal out from these?
20) Cook smaller portions of food. Be honest, we all chuck a third of our meals away!
21) Review left over food for the potential of making tomorrow's soup.
22) When you maternity pay drops to its lowest point, spend your accrued loyalty points with various stores then (or pay for Xmas with them).
23) Don't be afraid to ask your family for help. Mum's are fantastic at times.
24) The tax credits system can, at times, be generous. Do you qualify for more than you are currently claiming?
25) Manage your bank accounts and credit cards closely so that (a) you remain within limits and don't build up charges and (b) ensure your debts are not increasing as interest could become more of a significant issue.
26) Shower instead of bath.
27) Cancel newpapers and magazines.
28) Scavange the yellow sticker discount stand in the supermarket for value.
29) Sell your old junk on Ebay.
30) Investigate the economics of cloth nappies. It may be that somebody buying baby a supply of these as a gift will save you loads over the next couple of years and it may appeal to an environmentally friendly mind.
31) Don't be too proud - accept hand-me-downs for baby from friends and family.

If anybody else is planning a baby, start saving prior to conception. Start saving loads prior to birth. Baby's are expensive luxuries and the loss of an income hurts!

Last edited by opinions4u; 23-06-2010 at 1:24 PM.
opinions4u is offline
Report Post
The Following 2 Users Say Thank You to opinions4u For This Useful Post: Show me >>
# 4
vm1307
Old 23-06-2010, 1:13 PM
MoneySaving Newbie
 
Join Date: Aug 2007
Location: Hampshire
Posts: 6
Default

Thanks for your swift (and helpful) replies. Thank you for taking the time tothink of all those tips - there are some great ideas in there - I'm all set up with cloth nappies and ready to go so I'm hoping they work as well as I've read they do! I shall be having another look through to see which tips I can incorporate so thank you.

As far as other areas of our budget are concerned, they really are shaved down to the barest minimum and even my budget-queen skills on the grocery shopping (I can spin a healthy week's eating out of more or less a stock cube and the dust from under the sofa when the occassion arises!) can't help me following recent revelations re: what my partner can afford to cover during the last 3 months of my maternity leave (when my pay goes down to stat mat pay plus child benefit/CTCs etc).

Essentially I believe that our two options are: either enter into a Debt Management Plan/IVA/similar arrangement or take a payment holiday on the mortgage. I realise that the mortgage is a priority - which is why I've always paid as much of the capital as possible until now - but it's not an issue of not being able to pay it for the indefinite future; it's a case of having a shortfall for about 2 or 3 of the 6 months I'm on maternity leave and I'd be highly reluctant to enter into a long term (unnecessary) agreement simply to ensure that we can get through a temporary period of 2/3 months massively reduced finances. I guess I'll have to go back to work after 4 months (when my pay more or less dries up) if necessary but that time with my baby is precious and not something I'll give up if we can find an alternative arrangement.

I have an existing 3 year plan to pay off all our debt (mortgage excepted) so I really don't want to 'give up' on plan A by going down the IVA/DMP route iykwim.

I guess I'll just give them a call if nobody has any first hand experience of knowing whether they'll even entertain the idea. I just really wanted to do my research first as, after the last phone call, I was left feeling fobbed off and fed up.

ETA: fwiw I wouldn't be asking about going on a payment holiday on my mortgage if I could afford to shop at waitrose/have sky telly etc - I'm honestly not toying with the idea as some sort of casual 'easy' option!

Last edited by vm1307; 23-06-2010 at 1:52 PM.
vm1307 is offline
Report Post
# 5
Thrugelmir
Old 23-06-2010, 3:02 PM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: Apr 2005
Posts: 35,898
Default

Quote:
I guess I'll just give them a call if nobody has any first hand experience of knowing whether they'll even entertain the idea. I just really wanted to do my research first as, after the last phone call, I was left feeling fobbed off and fed up.
Santander do appear to be taking a tougher line now on payment holidays now. To be fair to them its not their responsibility to manage your financial affairs. If you wish to spend time at home, then its really down to you to change your personal circumstances. The choice is yours, there is no right or wrong decision.
"Bull-markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria."
Thrugelmir is online now
Report Post
# 6
buckle79
Old 17-08-2010, 9:23 AM
MoneySaving Newbie
 
Join Date: Aug 2010
Posts: 1
Unhappy Santander don't do it :(

I rang them last night as I wanted to use a payment holiday to help pay for wedding costs but they told me point blank they don't provide this facility and no plans to either. They did tell me other lenders do but what good is that to me?!

Does anyone know if Santander offer any other options to help with my circumstances?
buckle79 is offline
Report Post
# 7
beecher2
Old 17-08-2010, 9:30 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Dec 2009
Location: Glasgow
Posts: 2,634
Default

I'm sorry but I think it is madness to plan to use authorised mortgage arrears to pay for a wedding. Save up or cut the cost of the wedding.
beecher2 is offline
Report Post
The Following 2 Users Say Thank You to beecher2 For This Useful Post: Show me >>
# 8
Cannon Fodder
Old 17-08-2010, 9:43 AM
Fantastically Fervent MoneySaving Super Fan
 
Join Date: Oct 2006
Posts: 3,849
Default

Quote:
Originally Posted by buckle79 View Post
Does anyone know if Santander offer any other options to help with my circumstances?
I'm pretty sure Santander offer "Savings accounts". Which you can deposit your spare cash into, and earn some interest on.

A very useful product.


Quote:
Originally Posted by opinions4u View Post
If anybody else is planning a baby, start saving prior to conception. Start saving loads prior to birth.
Choosing to conceive when they know debts still need to be cleared...as though they think life will get cheaper by having another mouth to feed, and person to clothe.

Words fail me.
Hi, we've noticed that you don't have a signature to remove. If you're not sure why please read the forum rules or email the forum team if you are feeling left out.
Cannon Fodder is offline
Report Post
# 9
getmore4less
Old 17-08-2010, 10:16 AM
Deliciously Dedicated Diehard MoneySaving Devotee
 
Join Date: May 2007
Posts: 18,413
Default

Quote:
Originally Posted by vm1307 View Post
I have an existing 3 year plan to pay off all our debt (mortgage excepted) so I really don't want to 'give up' on plan A by going down the IVA/DMP route iykwim.
PLan A has failed if you are short allready.

Why not delay this plan, go to Min payments on everything, if that is not enough then if you realy are only going to be short for 2-3 months then default one or more of those, no need for a formal DMP, if you rotate round the other debts each of the months, there will only onew or two defaults per debt and the arreers can be sorted within a month or two and then you can resurect plan A.

Post a SOA so somene can have a look and offer a few options.
getmore4less is offline
Report Post
Closed Thread

Bookmarks
 
 




Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

 Forum Jump  

Contact Us - MoneySavingExpert.com - Archive - Privacy Statement - Top

Powered by vBulletin® Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.

All times are GMT +1. The time now is 1:11 PM.

 Forum Jump  

Free MoneySaving Email

Top deals: Week of 20 August 2014

Get all this & more in MoneySavingExpert's weekly email full of guides, vouchers and Deals

GET THIS FREE WEEKLY EMAIL Full of deals, guides & it's spam free

Latest News & Blogs

Martin's Twitter Feed

profile

Cheap Travel Money

Find the best online rate for holiday cash with MSE's TravelMoneyMax.

Find the best online rate for your holiday cash with MoneySavingExpert's TravelMoneyMax.

TuneChecker Top Albums

  • ED SHEERANX (DELUXE EDITION)
  • VARIOUS ARTISTSNOW THAT'S WHAT I CALL MUSIC! 88
  • COLLABROSTARS

MSE's Twitter Feed

profile
Always remember anyone can post on the MSE forums, so it can be very different from our opinion.
We use Skimlinks and other affiliated links in some of our boards, for some of our users.