mortgage payment holiday

hannahturley

we paid 240k for our house 5 years ago and when we took our mortgage with halifax they said we could have up to 6 months payment holiday during the term. we have had 2 payment hols so far but this year when i rang to see if we could get one they said no as our property has index value of only 205k and outstanding mortgage is 194k.
The house has gotta be worth more than 205 - they said we could have payment hol if their valuer says house is worth more but the cost for this is £120!! this seems so unfair - any suggestions?
thanks hannah

luckyfool

The payment holidays are not contractually guaranteed, and with Halifax are subject to ltv's and the reason given for requesting the holiday.

Their current valuation figure is based on their regional House Price Index. On average statistically over all the properties on their books it will be quite accurate, for any individual property its quite common for it to be 10%+ out one way or the other. I have had clients pay for the revaluation to get a new product deal with alot of success so you could go down that route if you want. That's basically your only option though if you want a payment holiday, Halifax are under no obligation to grant you one so complaining will not get you anywhere. A word of warning though, even if you paid for a revaluation, were successful, and got the valuation figure back at a high enough level, Halifax could still turn your request for a payment holiday down if they don't like your explanation for why you want one.

Its different if you have already overpaid, typically you can arrange to take a payment holiday up to any overpaid reserve without having to jump through these hoops.

opinions4u

hannahturley wrote: »

we paid 240k for our house 5 years ago and when we took our mortgage with halifax they said we could have up to 6 months payment holiday during the term.

Subject to meeting the criteria laid down for payment holidays at the time of requesting one.

we have had 2 payment hols so far but this year when i rang to see if we could get one they said no as our property has index value of only 205k and outstanding mortgage is 194k.

Remember, each payment holiday you have had has effectively pushed the debt higher than it would have been.

The house has gotta be worth more than 205 - they said we could have payment hol if their valuer says house is worth more but the cost for this is £120!! this seems so unfair - any suggestions?
thanks hannah

Many moons ago, there was no such thing as an indexed valuation from a lender. They simply insisted a borrower wishing to have additional funds advanced paid for a new valuation and charged them accordingly.

The use of indexed valuations has saved many thousands of mortgage customers a huge amount in valuation fees that would otherwise have been payable. But if the indexed value doesn't say what the customer wants it to say, then what do you think the fairest solution is?

You wish to miss a payment. This is the same as asking for a small loan. The lender says no, unless a valuer says different. If you want the service, you pay the fee.

xyellowx

halifax told me the same 2 weeks ago i wanted the holiday to clear some c/c debt for september
£120 to re value it then i could have 6 months break
think the halifax are lookin for new profitable ways to make up for the loss of the £39 bank charges
i told them where they could shove there £120 valuation and that i wouldnt be remortgaging with them in september either been with them 20 years they said thats fine they could close the accounts

poppy10_2

hannahturley wrote: »

The house has gotta be worth more than 205

Says who ?

redpete

xyellowx wrote: »

halifax told me the same 2 weeks ago i wanted the holiday to clear some c/c debt for september
£120 to re value it then i could have 6 months break
think the halifax are lookin for new profitable ways to make up for the loss of the £39 bank charges
i told them where they could shove there £120 valuation and that i wouldnt be remortgaging with them in september either been with them 20 years they said thats fine they could close the accounts

If they see customer who is having problems keeping up with paying off debts I'm not really surprised they are happy to say goodbye to you.

I'd be worried about being able to persuade any other lender to take on your custom at a reasonable interest rate come September.

xyellowx

redpete your talking out your backside
stick to your im a mug got a arb bet that cant fail to lose threads you put up then disapear when people quiz you about them instead of admitting your a muppet

i was talking about the £39 charge in general i was trying to help the OP

xyellowx

for your info i have a mortgage promise in full for £236k of the halifax

redpete

xyellowx wrote: »

redpete your talking out your backside
stick to your im a mug got a arb bet that cant fail to lose threads you put up

You mean the matched betting technique that made me something like £4500 over 18 months until I decided I wanted to spend time doing other things. If you seriously think it's like mug betting you've not understood it at all.

then disapear when people quiz you about them instead of admitting your a muppet

No idea what you're talking about there - your search for my previous posts must have been more careful than mine because I can't find anything recent that matches your description - if you provide a link I'll be happy to answer.

i was talking about the £39 charge in general i was trying to help the OP

I thought you were talking about the £120 charge.