do you have to stay with you mortgage provider if you take a payment break???

loves_a_good_bargain

Hi,
I am currently with the halifax and was thinking of taking a payment break for one or two months, i understand the interest i would add to my mortgage, but what i want to know is would i have to stay with the halifax if i wanted to move? as i only have until next january to wait for the mortgage to go down, i need the money now as my wife is pregnant and babies aint cheap!

Thanx!

Let_Us_See

I think you need to clarify your question before receiving a response. It just doesn't make sense.

CloudCuckooLand

Ask Halifax if a payment break is recorded as "authorised arrears". Get it in writing if they say it is not.

If they say a payment break is "authorised arrears", then you will damage your credit record and find it tough to move lenders.

Better to save for babies than damage the next 6 years of re-mortgaging.

dunstonh

It is also up to the new lender (if you do want to move) how they decide to treat authorised arrears. Authorised arrears often indicates affordability and budgeting problems. So, whilst it may not hit your credit rating, it doesnt mean it will not be held against you by a different lender.

, i need the money now as my wife is pregnant and babies aint cheap!

Babies are cheap. It gets progressively more expensive as they get older. So, if you cant afford it now and at a time of low interest rates then whats it going to be like in future?

You may wish to pop over to the debt free wannabe section of the board to get help if you are finding yourself with budgeting problems. Best to catch it early.

Senior_Paper_Monitor

We progressed a client through a payment holiday with Halifax last year and then remortgaged elsewhere - very much in Halifax's face when setting it up (everything covered in writing) but worked fine, with Experian showing 'U' on the file ('U' = The lender cannot give the account a status code for this month. This may be at the start of the credit agreement when the lender is allowing toime for the account to be set up, when you are waiting for goods to be delivered, when you have received the goods but payment is not due to start immediately, when there is a disput over the payments due or the goods received, or when the account is not being used).

They wanted clear demonstration of reason and ability to meet increased payments resulting at end of period - please note this was all around 6 months ago and criteria/policy etc change daily and certainly aren't getting more lenient.