Payment holidays -interested in views

Mister_Paul

Right,

We're relocating in a few weeks. The plan is to rent until we're settled and then buy. We've got a house here which is on the market, but not sold yet.

I could do without having to pay mortgage and rent at the same time, so rang Nationwide today to ask about the possibility of a payment holiday. We're financially very stable, and would settle the mortgage account once the house has been sold.

Nationwide said no. They said that we don't meet any of the criteria, but refused to tell me what the criteria are.

Frustrating really, given that our mortgage was sold on the basis of being "flexible". The bumf included a section on payment holidays but was very non-specific and made out that they would be pretty flexible. They're not, despite the fact that it's in their interests to help as we'll be looking for a new mortgage in a few months.

I'm just interested to hear any views really from those who know a thing or two. Thanks.....

liubeliu

Sure I have read elsewhere here that Payment Holidays are best avoided as some lenders still record this on CRA as missed payments. Also some view payment holidays as person having affordability problems. Do a search here and see what others haev said.

opinions4u

Is it in their interest to retain you as a customer? They might want to reduce the number of mortgages that they have. Espeicially those with low and portable interest rates.

As for the payment holiday, criteria pre-Credit Crunch were different to what they are now. That's the end of the story. If they don't want to authorise it, and it's not a guaranteed right under the T&Cs, you're at the end of the road.

If you've been overpaying at any point, ask them whether that gives you any flexibility today.

dunstonh

We're financially very stable

So why are you considering authorised arrears? (the less comfy name for payment holidays post credit boom)

despite the fact that it's in their interests to help as we'll be looking for a new mortgage in a few months.

Maybe the fact you want authorised arrears is something that would turn them off. Whilst it doesnt affect your credit file (as they are authorised arrears) some lenders look upon it as trouble waiting to happen. if you are struggling to pay a mortgage with a previous lender, would they really want to take you on with the risks you potentially present?

Thrugelmir

Mister_Paul wrote: »

They're not, despite the fact that it's in their interests to help as we'll be looking for a new mortgage in a few months.

I'm guessing that they'll force you off a low rate of interest onto a new product.

There's no certainty that the house will sell quickly in the current market. Only 1 in 3 properties on the market are actually being sold.