Mortgage Payment Holiday Needed

lolly2003

Hi Everyone,

I am new to the site so hope i have posted in the correct part.

I am 23 bought my first house with my partner June 2008 and have since been struggling to pay my bills as we have other debts such as credit cards loans etc.....

However we could clear most of these debts up if we could have a few months payment holiday as our mortgage payments are so high each month and then would be able to get by a little easier, the problem is the Halifax will not let us have a Payment Break as our house is probably in Negative equity but i dont want to loose the house as i love it so if they could just help us out then we will in future be able to carry on with payments on time every month. If not then i am scared that we may default and loose the horse all together.:mad:

We have never missed a payment and always made sure it gets paid each month.

Any Ideas on what i can say them to make them give us a payment holiday? Is there anyone i can wirte to that would be able to help?:rolleyes:

Thank you in advance,

L. xx

G_M

Riding is an expensive hobby and funding the stables etc via credit cards can rapidly lead to problems.

Offer to pay half the amount rather than take a complete 'payment holiday' maybe that way you can still keep the horse in oats!

princeofpounds

Simply put you have overstretched yourself. There are only a few ways to resolve this

- get more income
- cut costs
- manage your debt as effectively as possible
- give up an go for IVA or Bankruptcy


The bank are under no obligation to give you a holiday. But partial holidays and ensuring all your other debts are consolidated in the cheapest place possible are worth trying.

The DFW and old style boards will help on saving costs.

Getting more income is largely down to you. Take a saturday or an evening job for a year perhaps.

Bankruptcy is last resort.

Trollfever

Having problems with your mortgage payments?

http://mortgagehelp.direct.gov.uk/default.aspx


.

sem9999

Think horse = house

Anyway as far as your dilemma is concerned it does not look too good:

-you have not really been paying mortgage for long enough to justify payment holiday
-Halifax has got very tough regarding allowing payment holidays anyway so in your situation unlikey to be obtained (was refused 3 months holiday whilst sorting out finances during divorce even though only had 10yrs+ of up to date mortgage payment)

So as suggested in other posts look at decreasing your outgoings and increasing you incomings (quite seriously a pt job if you can find one on top of your existing employment seriously helps to acheive both of these things).
Best of luck

chappers

Your mortgage is your priority over your unsecured debts, have you spoken to one of the debt charities with regrads to managing your debts, have you spoken to your lender about going interest only for awhile or extending the term.

Tuscan

if your really up against it then you may want to consider speaking to the CCCS etc and get some advice. you may be able to set up a dmp (debt management plan) which will allow you to reduce your non secured debt payments on a monthly basis. if you are seriously looking at not being able to pay your mortgage soon then reducing your credit cards payments etc is the lesser of two evils, although this will have a negative effect on your credit file...

Vincenzo

lolly2003 wrote: »

Hi Everyone,

However we could clear most of these debts up if we could have a few months payment holiday as our mortgage payments are so high each month and then would be able to get by a little easier, L. xx

Restructure your unsecured debts over a longer repayment period. This will cost you more in the long run but will take the pressure off for now.

You need to protect your credit rating as this will be important in getting a competitive deal when you eventually come to re-mortgage so avoid defaulting or entering into any kind of agreements with creditors if at all possible.

chappers

G_M wrote: »

Riding is an expensive hobby and funding the stables etc via credit cards can rapidly lead to problems.

Offer to pay half the amount rather than take a complete 'payment holiday' maybe that way you can still keep the horse in oats!

If you look at the original post it looks like the horse is going to be set free

lolly2003 wrote:

and loose the horse all together

Mini_Bear

Could you not get a lodger in or a family friend to rent a room?
i know its not ideal but a yr or so of "sharing your space could really help you out. If you both got second jobs as well you it will keep you busy and stop unecessary spending!
Good luck whatever you decide OP.

Fire_Fox

I agree with Tuscan: contact CCCS or PayPlan (both charities) and discuss going onto a debt management plan (DMP). Most creditors will freeze your interest and the repayments will be set at an amount that is affordable with your income and circumstances. A payment holiday is not the solution it's simply a temporary fix. The mortgage is a priority debt, you should be paying this first - any interest accrued on a payment holiday will only be added to the total owing and you say you are already in negative equity.

Is there any way you can increase your income, one of you take on a second job or taken in a lodger if you have a spare bedroom (tax free income)? Is there anything major you can cut back on, do you run two cars when one could walk/ get a lift/ cycle/ use public transport? Do you have a car loan but could trade your car down? This is the budget planner used by the Debt-free Wannabe board: http://www.makesenseofcards.com/soacalc.html
If you complete it and post it up there they will help you see where you can cut back.