Payment Break ?

AfterDark

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gizmo111

Most of them you need to have paid for 6 months and have no arrears.

traceyr

I had a payment holiday last year you can take between 1 and 6 months break. I phoned to arrange this in the middle of the month and our payment break started from the next payment which was the 1st of the following month.

AfterDark

Delete ..............

VIGILANT22

Be careful following "advice" on here.....phone yr mortage co & check if payment breaks are treated as authorised arrears......

opinions4u

AfterDark wrote: »

Hi hoping someone can offer some advice on here, wanting to take a payment break on my halifax mortgage ?

A payment holiday is nothing more than a loan (equal to the monthly payments 'missed') repayable over the remaining term of the mortgage. Do you really want to borrow a relatively small amount over such a long time?

Here's a linky to their web site.

I think this quote covers the key information:

[FONT=Arial, Helvetica]

[FONT=Arial, Helvetica]To qualify for a payment holiday you need to have had your mortgage for at least three months and be up-to-date on your payments.[/FONT]
[FONT=Arial, Helvetica]Although we try and help as many customers are possible, there will be some cases where a payment holiday may not be available to you. These can include the following:[/FONT]
[FONT=Arial, Helvetica]If you have a second charge on your property[/FONT]
[FONT=Arial, Helvetica]If you have had previous payment holidays totalling six months[/FONT]
[FONT=Arial, Helvetica]If your loan-to-valuation exceeds our criteria[/FONT]
[FONT=Arial, Helvetica]If you think you would be eligible for a payment holiday, applying is easy and very straightforward.[/FONT]
Call 08457 27 37 47 and select option 1, or visit one of our branches.
[FONT=Arial, Helvetica]Although payment holidays can help in the short term, interest will still accrue and any missed interest payments will be added to your overall mortgage, resulting in increased contractual monthly payments.[/FONT]

If the payment holiday would mean your debt rising to more than 90% of property value in won't be allowed.[/FONT]

remember something about this from when I applied, but can't find the book and there helpline is closed. Does anyone know if theres a timeframe from taking the mortgage that you can apply for this ?

After 3 months.

How long does it take to get sorted out ect ?

It used to take about 60 seconds to process. I would suspect that they do a little bit more by way of verification these days, but the payment holiday would usually start from the 1st of the following month (unless you apply very late in the current month).

You will usually get an estimate of what your monthly payment will rise to at the end of the payment holiday.

VIGILANT22 wrote: »

Be careful following "advice" on here.....phone yr mortage co & check if payment breaks are treated as authorised arrears......

This is a very important point. A couple of years ago a Halifax payment holiday would not be recorded in a derogatory way. While I would assume that is still the case, you should certainly ask the question!

AfterDark

Delete...........

getmore4less

AfterDark wrote: »

Seems like I have alot more to think about in the long run rather than just a short break, never really thought it would be like loan. My mortgage payments are quite low under £350pm. so it thats how it works and i took a 6month break, it would add £7ish to my month payments. Will have a chat with them on monday and have a good think about the pros and cons before comitting myself. Thanks for your helpful advice

You defer the capital componant of the payment but more critical is the interest start to compound untill you resume payments.

Why do you feel the need to take a break, any other options?

blt

Hi,

Just wanted to let you know...I looked at taking a payment break from my mortgage as the house is up for sale and empty (living with my partner). I checked with the 'checkmyfile.com' team and they advised me to that this would should as an 'unpayment' on my credit file. As we would like to buy a house together in the next 6 or 7 months, I've now decided against it. Considering switching to interest only whilst it's on the market though, but I need to check that this won't affect my credit file.

Hope this helps:)

VIGILANT22

blt wrote: »

Hi,

Just wanted to let you know...I looked at taking a payment break from my mortgage as the house is up for sale and empty (living with my partner). I checked with the 'checkmyfile.com' team and they advised me to that this would should as an 'unpayment' on my credit file. As we would like to buy a house together in the next 6 or 7 months, I've now decided against it. Considering switching to interest only whilst it's on the market though, but I need to check that this won't affect my credit file. Hope this helps:)

Most sensible post on here.....Do not depend on here for "advice"....lenders deal differently

spendapennyortwo

I have a relative who has had a mortgage payment break but have no idea for how long (he works part-time and his partner is self-employed). I would imagine they can't possibly take repeated mortgage payment breaks, yet they still have a mortgage on part-time salary (for about a year now - before that unemployed yet still had a mortgage!). Seems dodgy territory to be entering into - you must be aware of the implications of pressing ahead. It's worded well in the sense that you are getting a 'break' from it, but it's not really doing you any favours in the long run because you'll have more money to pay off. I'd try and find an alternative way of finding money to pay the mortgage tbh.