taking a payment holiday on loan whilst applying for mortgage

BLUEBIE

Hi

I am splitting up with my husband and am having to sell my house and buy another one. I have a mortgage agreed in principle, through a broker, but haven't gone any further as there is nothing I can do until I get a buyer for my house. Now most of the fees are going to come out of the equity however I need about £1500 up front. I have a couple of loans with lloyds and was thinking about taking a payment holiday so I could save this money to use for the upfront fess.

Would this show on my credit score? It is something the bank offers, obviously don't want to do anything to rock the boat mortgage wise at the moment.

Thanks

Bee

kingstreet

The agreement in principle will probably lapse before you are in any position to apply for a mortgage, so anything you do which could affect your credit profile could adversely affect your chances of getting a mortgage.

Do not attempt any kind of payment holiday without checking the implications for your credit profile with the lender beforehand.

BLUEBIE

Thanks, so if I phone Lloyds, will they be able to tell me if it will show on my credit report?

Bee

Senior_Paper_Monitor

I'm afraid that 'Sharon' who you speak to on their 'help line' simply won't know - and the danger is she (or he - Dave is just as dippy) will bluff.

The holiday can show as a number of different indicators - not reported, under arrangement or just plain late.

A very risky action to take

jamesd

Don't. Any arrangement on a credit report is a negative factor.

If you need the money, do more of your normal spending on a credit card and save the money until you accumulate what you need.