mortgage payment holiday ????

FF.STOLTZ

thanks for all the replys ..ive phoned them and they (skipton) would only allow a payment holiday if you have previously made overpayments .. which in the scheme of things sounds like it is a better plan as i wasnt that keen on taking one anyway ... its definately the 'lightbulb' moment somebody mentioned earlier !!! THANKS ,

bert-09

we took a mortgage break from the halifax as my partner was off work over a year due to a series of operations. Halifax assured us it would not appear on our records. The records show 6 continuous months with the letter 'U' on our mortgage. We have just applied to renew our mortgage with them which is £52000 and asked for an extra advance of £8000. We have susequently been refused, they will renew the £52000 but with no advance and said the reason was our credit score. Mine isn't brilliantly at 706 my partners been 867. we are now in the process of trying to establish why. The scores are the same as two years ago when we took the mortgage out and our LTV is 61%. i would seriously check with your lender what they put on your records regarding a payment holiday.

dunstonh

zaksmum wrote: »

My son does this regularly. If he is going on holiday or has a few extra bills or the kids need new school uniforms, he just speaks to his lender and takes up to three months repayment holiday on his mortgage.

He says it takes the pressure off financially and emotionally, so why not?

Why not? it shows poor money management and possibly cashflow problems.

It should be an option of last resort. Not something you do to pay for a holiday. Good grief. No wonder this country is in a state when you get people taking authorised arrears to pay for holidays.

Tjrw1985

Not all lenders mark a payment hliday as arrears as the whole process means the payment becomes due on the due date and is then added onto the poutstanding mortgage balance. This means after the payment holiday has ended payments are recalculated to take into aco!!!! the higher debt and lesser term to pay back in.

It can be used as a forebearance tool for unemployment, terminal illness and the like, but I would certainly not consider one or allow one for possible known bills.