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Northern Rock - Payment Holiday = arrears?
Ju&Mel
Posts: 249 Forumite
In 2010 (Jan-Mar) we had a payment holiday from NR for 3 months to allow me to take 3 months unpaid maternity leave
(NR T&C's stated you can take 1 month for every 9 months of payments, up to 6 months consecutive)
I'm just concerned now as we have just sold our house, and as we are now NRAM we will be taking out a new (larger) mortgage
Will this authorised payment holiday be classed as arrears and affect us getting a new mortgage?
(NR T&C's stated you can take 1 month for every 9 months of payments, up to 6 months consecutive)
I'm just concerned now as we have just sold our house, and as we are now NRAM we will be taking out a new (larger) mortgage
Will this authorised payment holiday be classed as arrears and affect us getting a new mortgage?
0
Comments
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Have you repaid the arrears built up during the payment holiday?0
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A new lender could theoretically dislike authorised arrears. It may be an issue if you require manual underwriting (i.e. you are pushing limits and an underwriter is looking at your case). However, it shouldnt appear on your credit file and if you are not pushing limits you should be fine.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Arrears do not build up during an NR/NRAM payment holiday nor are they 'capped'. Your agreed payment is £0 however interest for the period is added to your outstanding balance therefore the o/s balance increases.0
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