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mortgage payment holidays

lazlo
Posts: 7 Forumite
Can anyone explain to me about mortgage payment holidays? My ex has dropped child maintenance payments due to job loss and I am struggling. Going to ask the RBS for options and thought this might help in the meantime.
Have been with them three years and have a good payment record. Need to know what I am talking about??
Have been with them three years and have a good payment record. Need to know what I am talking about??
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Comments
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Many lenders will allow you to take a payment holiday. A payment holiday actually means that the payment you would normally make is added to the capital of your loan, and therefore that you'll pay more every month over the remaining term of the mortgage.
Lenders are getting less keen to allow payment holidays - particularly where borrowers are paying very low rates! Expect them to require a reason, or to simply say no. You have no rights to expect a payment holiday, in most cases.0 -
Rang RBS and they said that I could have a six month at only half the mortgage cost or 3 month mortgage break to tide me over this difficult period but that I would then have a bad credit rating which would affect me for 6 years so its nice to know RBS are a caring bank. I have no choice really but to sell my home!!0
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They need to be clearer about what they are offering.
A payment break does not affect your credit rating, because the lender is granting you a holiday from your payments.
The only way it would lead to a bad credit rating is if it was an arrangement (i.e. a debt arrangement to deal with arrears) rather than a payment break. It sounds like this is what they are offering, rather than a payment break, but they shouldn't attempt to confuse you about the difference.0 -
Rang RBS and they said that I could have a six month at only half the mortgage cost or 3 month mortgage break to tide me over this difficult period but that I would then have a bad credit rating which would affect me for 6 years so its nice to know RBS are a caring bank. I have no choice really but to sell my home!!
They have given you an option to pay less and explained the consequences of this - which is simply that your underpayments will be honestly reported on your credit file.
It may well be at a time when the value of your home and the size of your mortgage are uncomfortably close to each other from the lender's perspective, increasing the risk of them losing money.
Have you made sure you and your ex are claiming any tax credits / benefits that you're entitled to?0 -
With respect I know they are not a charity but the LTV is 29% so there is a sizable equity in the property of £100,00.00 yet everything is in black and white and the answer is NO whatever the circumstances.0
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But they ARE being flexible. They are allowing you to make an arrangement to pay less than your contractual payment, but then they are going to correctly report on your credit status report that you were unable to meet your contractual payments.
What exactly is misleading about that?0
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