Payment Holiday Feature on a Bham Midshires Mortgage

loveandlight

I have a feature on my mortgage where I am allowed to take two payment holidays a year. I have never used it before. Does this mean I can contact Bham Midshires (my mortgage provider) and tell them I won't be paying next months mortgage and by doing that, will it mean my credit rating will be affected and will it put me in their bad books?

sammyjammy

It doesn't mean your credit rating is affected althoguh interest will continue to roll up on your mortgage, it is effectively authorised arrears.

You cannot assume they will let you have a PH, you have to apply for one, they will not give it to you if its for anything you need such as to help with debt repayments etc because they will believe it is just putting off the inevitable.

Sam

loveandlight

So when I apply for one do they ask why I want one? What reasons do people give for a payment holiday?

loveandlight

Will someone please answer this for me?

beecher

Just be honest and tell them the truth. Go onto the Debt Free Wannabee threads for advise on how to cut back elsewhere so as you don't have to go into arrears on your mortgage.

loveandlight

I don't need to miss a payment I am just thinking of giving myself a month off so I can use the money for other things and pay two months the following month. Its a feature of my mortgage anyway that I'm allowed two months holidays every year so I'd like to be able to use it but as I've said before I've never done it before so don't know how to go about it etc.

beecher

loveandlight wrote: »

I don't need to miss a payment I am just thinking of giving myself a month off so I can use the money for other things and pay two months the following month. Its a feature of my mortgage anyway that I'm allowed two months holidays every year so I'd like to be able to use it but as I've said before I've never done it before so don't know how to go about it etc.

It is a feature which costs you money and best to be avoided if you don't need to. Mortgage arrears should be treated as a last resort, even if they are authorised.

dougk_2

If you want to spend some money and pay two months worth next time, why not use a credit card that has 50 odd days interest free period?

Just make sure you pay it off in full by the date given on the statement.

BUT... if you can afford to make double payments the next month why not wait buy whatever else you want next month rather than this?????

If you take a payment holiday from your mortgage you will pay interest on the interest fro the rest of your mortgage term so it costs you as the previous poster as said. Think of it as borrowing extra money on your mortgage.

Wutang_2

loveandlight wrote: »

Will someone please answer this for me?

Birmingham Midshires will, no problem

loveandlight

Thank you beecher and dougk.

Your post smacks of naivety Wutang. Haven't you heard of the phrase 'look before you leap' and read all the posts scattered on this forum where people have contacted lenders and credit card companies just for knowledge and ended up having that knowledge used against them?

I have been a member of this forum long enough to see how vicious a lot of people have become to people genuinely wanting information only. Unfortunately we live in a society nowadays where so many people are quick to think the worst of people and I'm just making sure I protect myself so I don't end up making bad decisions based on ignorance so there's no need for sarcasm.

I shall be following your posts with interest now Wutang.;)

Wutang_2

loveandlight wrote: »

Thank you beecher and dougk.

Your post smacks of naivety Wutang. Haven't you heard of the phrase 'look before you leap' and read all the posts scattered on this forum where people have contacted lenders and credit card companies just for knowledge and ended up having that knowledge used against them?

I have been a member of this forum long enough to see how vicious a lot of people have become to people genuinely wanting information only. Unfortunately we live in a society nowadays where so many people are quick to think the worst of people and I'm just making sure I protect myself so I don't end up making bad decisions based on ignorance so there's no need for sarcasm.

I shall be following your posts with interest now Wutang.;)

A fan club! - fantastic!!

now get on the phone.