Negotiating mortgage payment holiday

conar686

With Northern Rock & want to fund xmas buying for wife & 3 kids

Any ideas how I can ask/persuade NR to give me a payment holiday for a month or 2?

CLAPTON

A payment holiday means that the interest will continue to be charged and hence your overall debt will increase. So you are borrowing money over the length of your mortgage (say 20 years ) to pay for one christmas. Basically a bad idea...had you considered saving money between now and december instead?

terriblesaver

conar686 wrote:

With Northern Rock & want to fund xmas buying for wife & 3 kids

Any ideas how I can ask/persuade NR to give me a payment holiday for a month or 2?

perhaps rather than a holiday you could ask for a reduction for a couple of months and then make it up after xmas???

conar686

On Interest only mortgage payments, I have no spare cah to put into savings so I need to either get a second job - not easy or get some space from my creditors.

CLAPTON

if you are struggling with debt why not post a SoA and see whether people here can help with some ideas

WelshWoofer

I have a mortgage with NR and on all of my statements they say you can have a 1 month holiday providing you are up to date and have paid 6 months or more.
Try calling them if this is your only option - I have found them quite helpful in the past.

GingerSte

Your story really frightens me. I am to begin a payment holiday next month, as I am going to university for four months (long story). This means that my payment is going to go up. I can't remember the figure but my mortgage provider has already told me. The same will happen with you if you take a mortgage holiday, and if you're skint already then this may push you over the edge.

I know it's not what you want to hear, but I think you're going to have to look for that second job, even if it is hard. Another way is to post your SOA (Statement of Affairs) on here and get the experts to pick their way through it. If you have to take a payment holiday this year what will you do when christmas comes round next year and your mortgage payments have gone up?

Sorry for being the bearer of bad news.

lynzpower

I just could not agree more with gingerste.

If you need money for Xmas, or space from your credoitors, get an SOA up here lets see if we can find you any money.

If you need something for Xmas, then I suggest a second income if there s no wa we can find any spare in your SOA, or selling some stuff.

Lynz
x

barnaby-bear

conar686 wrote:

On Interest only mortgage payments, I have no spare cah to put into savings so I need to either get a second job - not easy or get some space from my creditors.

Interest only - you do realise you are only servicing your mortgage debt and you are supposed to be using a savings vehicle so you can pay off the capital as well?

Payment holiday will make future payments more expensive. If you are struggling to meet IO mortgage now can you afford the increase? Interest rates are likely to go up a bit over the next few months - your payments could be likely to rise, have you the reserves to pay remorgaging costs at end of deal etc...

Home and roof over heads sounds priority, personally I think prioritising xmas over accommodation sounds a bad idea. Accommodation essential, xmas expense isn't. Xmas can be cheap and your kids might learn the value of money rather than "needing" a whole load of plastic cr&p imported from China. If your kids see the expense as essential to xmas they'll get into cycle too. I know you want to do the best and be the best dad in the world and they might be a bit grumpy at having less tat than normal this year but being a good dad is equiping them for life and your families pushed and your kids need to learn about budgets etc too so that when they are older they'll be financially secure.

As a family if things are this tight you do have to all pull together and save/cut down or increase income (borrowing from yourself and the mortgage or putting it on cards doesn't count).

conar686

Tks to all that have replied - left me with lots to think about. I'm with a debt mgmt company at the moment & all my spare cash goes to my creditors. I am squeezing spare cash out by following advice & tips on this forum. How do I psot the FSA?

GingerSte

Do you mean SOA (Statement of Affairs)?

Sorry if you meant something else.