Mortgage help.

dori2o

Due to wear and tear, our kitchen roof needs replacing.

We have had a quote from a local guy who has said he will do the lot for £350 this includes replacement slates where needed.

Now we have no spare money at the moment.

The only option I can see it to skip a months mortgage payment.

Now I'm not just going to do it without discussing with the Mortgage company (Chelsea), but I was hoping to miss 1 payment £440, and agree to increase the monthly payment to bring the account upto date.

There is no chance of remortgageing as although we are in equity, it is only approx 20% of the value and we need 25% to remortgage.

I have checked the mortgage and as far as I can see there is no scope for payment holidays.

How should I apporach this and does anyone think the mortgage company will agree?

Cannon_Fodder

I would avoid doing this, if at all possible.

The Lender may well class the missed payment as arrears, which would damage your credit rating. When you came to re-mortgage you would find the deals are worse or the very best deals are not even available to you.

Quite a few threads complaining that even where an agreed payment holiday has taken place, the Lender has marked the credit file as being in arrears...

Which could well cost a lot more than £350 over the life of a mortgage.

Get a 0% credit card and make sure its paid off asap, would be a better option.

You say you can increase the monthly mortgage payment, so paying off the credit card would be the same difference without the risk of an adverse effect on your credit history. imo.

dori2o

Cannon_Fodder wrote: »

I would avoid doing this, if at all possible.

The Lender may well class the missed payment as arrears, which would damage your credit rating. When you came to re-mortgage you would find the deals are worse or the very best deals are not even available to you.

Quite a few threads complaining that even where an agreed payment holiday has taken place, the Lender has marked the credit file as being in arrears...

Which could well cost a lot more than £350 over the life of a mortgage.

Get a 0% credit card and make sure its paid off asap, would be a better option.

You say you can increase the monthly mortgage payment, so paying off the credit card would be the same difference without the risk of an adverse effect on your credit history. imo.

Hi Thanks for the advice.

This course of action really is the last course we could take.

I cannot get a credit card with a low enough rate to make it worthwhile, even the likes of Cap1, Vanquis,whilst I could get a card, with their intrest rates they would work out far more expensive.

I just though that by agreeing to miss a payment, and pay back the money within 2 years, with my intrest rate (5.7%) this would be more beneficial than paying the same on a credit card with an apr of 29.9%

Maybe I should try speaking to my bank (personal bank not linked to mortgage) and see what solutions they can come up with.

Cannon_Fodder

An authorised overdraft with your own bank might be a low-ish rate ?

Or switching Bank Accounts could get you 0% overdraft... http://www.moneysavingexpert.com/banking/compare-best-bank-accounts#overdrawn

Thrugelmir

Could you not pay the roofer in installments?

Conrad

The lender may well show this as arrears (even if staff verbally assure you this wont happen) which in this climate will come back to bite you big time.

From a lenders point of view it's akin to your boss saying he will miss this months pay as he's short, but will make up the defecit over 2 years - you would not think this acceptable. Thats why they class it as arrears usually. Worth calling Chelsea to see if they will allow but make QYADRUPLE certain that this does not show on your credit file as a late - get this in writing up front.

catieeb06

Ask your lender for a mortgage payment holiday. I currently work for Halifax mortgages and its something we offer. Does freeze your direct debit for a month and then that missed payment is spread across the rest of the term so your payments do increase slightly.

Maybe the Chelsea do something similair.

HTH

Catie x

Thrugelmir

catieeb06 wrote: »

Ask your lender for a mortgage payment holiday. I currently work for Halifax mortgages and its something we offer. Does freeze your direct debit for a month and then that missed payment is spread across the rest of the term so your payments do increase slightly.

Maybe the Chelsea do something similair.

HTH

Catie x

The concern in my mind as this compounds the problem. As what happens next time money is required in an emergency? Pushing away into the distance does not resolve the real issue I fear.

Cannon_Fodder

catieeb06 wrote: »

Ask your lender for a mortgage payment holiday. I currently work for Halifax mortgages and its something we offer. Does freeze your direct debit for a month and then that missed payment is spread across the rest of the term so your payments do increase slightly.

Maybe the Chelsea do something similair.

HTH

Catie x

Can you confirm whether Halifax marks the credit file in any way, for a payment holiday ?