Halifax refuses to give mortgage holiday, PLS Help.

ash123

Hello everyone, I have an mortgage with halifax which is due to end in september at a fixed rate of 5.19% for 2 years. Last month (february) due to loss of job we took a mortgage holiday, however still not able to find job we asked another 2 months of holiday which they refused reason being "we are not eligible because according to FSA's new rule we should have score of 91% and above"
bearing in mind as per contract we are allowed 3 mortgage holidays in 2 years and we only took 1.
we paid 20% deposit on the house
pls help how to go about it!

maninthestreet

Are you in arrears at all?

MarkyMarkD

It depends what your contract actually says.

You may only be allowed single month holidays at a time; they may be entirely discretionary; they may have an LTV requirement.

There are lots of reasons why you may not be allowed it.

Comyface

Hi Ash123. The only reason I can think for the refusal would be LTV. The '91%' you mentioned must relate to that. The maximum LTV you would be allowed after a mortgage payment holiday (in which your 'missing' payments are added to your debt) is currently 90% with Halifax.

If you put down 20% deposit two years ago, that may well have mostly disappeared in the house-price decline so that's what they'll be basing their figures on, I reckon. Internal policy, nothing to do with FSA.

You should be allowed 6 months 'off' on a halifax mortgage, equity permitting.