Payment Holiday Options

DevonChris

Hi,

This is my first post. It is very possible that I may be going to prison for 18months or so in the not too distant future. I have no debts other that a 130k mortgage with the Nationwide, which I am currently paying of in a 5 year fixed 5% repayment only scheme,. This is due to end in 20 months time.

What I would like to know is whether lenders are sympathetic to this kind of problem, and whether there is any chance that I could negotiate a payment holiday for this period so that I do not have to sell the house and my wife be forced to move in my absence.

As a contractor, I should not have too much difficulty gaining employment after my stay at HMP.

The house is worth about £1M so there is plenty of equity. I am 50. Any advice or guidance would be greatly appreciated. Thanks.

getmore4less

Rent it out, if they will give permission.

Any space for lodgers?

Wife not working?

GEEGEE8

I'm not an expert at all, but could you not re-mortgage, release some equity and give that to your wife for the mortgage and bills?

SouthCoast

Prisoners' fact sheets:

http://www.adviceguide.org.uk/index/your_rights/legal_system/prisoners_fact_sheets.htm

beecher2

http://www.turn2us.org/information__resources/managing_money/life_events/prisoners_and_ex-prisoners/step_1_while_in_prison/your_home.aspx

Another factsheet

If you have a mortgage:

• Let your mortgage company know about your change in circumstances straight away. You may be able to come to an arrangement, for example freezing payments while you are in prison or switching to an interest-only mortgage
• Consider renting out your home, but first check the terms of your mortgage to make sure you are allowed to do so.

DevonChris

Thanks for all of your replies. My wife will go to work, but the kind of work available in my area of Devon is very low skilled, and secretarial is about as good as it gets without travelling a long way. This means that her income will barely cover basic bills and living, let alone the mortgage.

I am obviously not keen to remortgage to pay the mortgage as this is totally dead money that costs dear, but I will bear it in mind as an option. The problem is that I will have to decide to go down this route before I let my lender know there is a problem, otherwise I guess would not get the advance.

Thanks to SouthCoast and beecher2 for the links.

I guess there is no silver bullet to this problem, but if anyone else has other suggestions they would be very welcome. Thanks