Northern Rock - Payment Holiday = arrears?

Ju&Mel

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?

Thrugelmir

Have you repaid the arrears built up during the payment holiday?

dunstonh

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.

Indispensable_Hobbes

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.