Soon to go on maternity leave - smp only - large halifax mortgage and stressing out

mrssparkley

Hi. I've had a search of the site, but can't find an answer...so thought I'd write my first post!

The facts:
I am pregnant with my second child, due in October. My salary take home atm is 1700, my husband's 1200. I only receive SMP, and with cuts and avings here and there, the fact is my mortgage is massive, and I can't cut anywhere near enough to cover it. It is £1100 p m. Last pregancy we arranged to pay interest only with the Yorkshire, for 9 months, which took the payment to £700 - and we became overdrawn and took out a credit card to get by - so we have debt, but all managageable atm. With childcare and debt repayments etc, we pretty much break even every month - we haven't had a holiday in 6 years etc. We have no savings. Anyway, I'm not here to go through the whole statement of affairs etc, because I'm only going to be on mat leave for 6-9 months (prob 6 months realistically), and I know I can save a few hundred here and there - but it's not going to cover the mortgage.
The problem?
We switched mortgage company last Oct to the Halifax. At the time I became pregnant the offered customers a mortgage payment holiday of 6 months - no loan to value minimum, and could take in one go. This was our plan to get us through my mat leave. Well I phoned them about 2 months ago to get it set up and, low and behold, they've completely changed the criteria and we don't qualify on ltv, and even if we did. the max numb of months is 2 months. This wont help as after 6 weeks, my income will go from 1700 to 500 p month. I asked what could be done - interest only?? Increase the term as as short term solution etc - and was told NO - they can't offer these things. I couldn't believe it and made the point I wanted to be a responsible borrower and was contacting them several months before the 'problem' was going to be there. They said all I can do is to wait until the month I can't actaully pay, and then call them again. i asked for some kind of indication as to what people get offered in these circumstances (e.g - it's short term - i am goin g back to work!!!!) and they said they couldn't discuss it. Well I've been stressing ever since - last time, I'd had the agreeemnet set up about 5 months prior to it satrting, so I didn't sress and knew where I stood. this time allsorts of worries are going through my mind. We won't be able to pay the full amount - that's a fact - and because we built up cc debt last time, it's not an option this time. We have absolutely no family in any kind of position to help out - we're on our own, and the baby comes in 3 months :-(

Could they reposses during maternity leave?
Does anyone know what they're likely to offer as a payment plan??

Sorry this is a ramble and thanks for reading :-)

opinions4u

I'd suggest:

1) go to https://www.makesenseofcards.co.uk

2) complete a statement of affairs (SOA)

3) post the details on the Debt-free Wannabe part of the forum

Could they reposses during maternity leave?

Technically yes. But the process takes time and if you keep talking to them and prioritising your finances it's unlikely.

Not paying the unsecured debt is a better option than not paying the mortgage. Follow the steps above and you'll get some excellent help and advice to help you keep your house.

mrssparkley

thanks, I'll move the post if people think I need to - but as I said, it's a short term problem, and it's the mortage I'm worried about - My loss of income is more than the mortage - I was interested to know if anyone else had dealings with the Hx in similar circumstances, rather than looking at saving a few 100 here and ther on ccards

Simon_gloster

All lenders in Lloyds Banking Groupbnow state a payment holiday can only be requested once in the lifetime of the mortgage.

Interest only MAY be a short term option, but no lender wants to go down that route if they can help it.

If you paid a mortgage account fee of £245 this covers any request and admin of the mortgage, including term extensions. Although i dont know your age, this will impact whether they let you or not.

Answer to your question. Yes they can repo. Likely, no chance as it can take months also you have a young family.

mrssparkley

I've never had a payment holiday. We've been homeowners for 11 years, but 10 with yorkshire, and only had HX mortgage since last Oct. I'm 35.

mrssparkley

I only want some payment plan in place for 6-9 months. We've never ever missed any payments - I just hate not knowing what they'll say when i call them, as they adviced, in October when i know we won't be able to make November's payment :-(

opinions4u

mrssparkley wrote: »

I only want some payment plan in place for 6-9 months. We've never ever missed any payments - I just hate not knowing what they'll say when i call them, as they adviced, in October when i know we won't be able to make November's payment :-(

Looking at ways to preserve cash now can create a fund to pay part of the mortgage later on.

mrssparkley

Sorry if it seems I'm not willing to save elsewhere - I have woked out I can save by cutting some other stuff, but unsecured cc is only £150 p month - I am not wanting to pay NO mortgage, but just won't be able to pay £1100 p month. I guess I just wanted reassurance they would be able to offer interest only/payment plan on this thread - but it seems I'm not going to get that ;-(

mrssparkley

Also, the baby comes in 3 months time - We cant save enough by then can we?! Managed to save £700 so far, so that's hardly goin g to make much of a help

opinions4u

They will offer some sort of assistance.

But it won't be open ended and it won't allow you to prioritise unsecured loan repayments ahead of the mortgage.

It will be likely to harm your credit rating.

Dave_Ham

Do not default on the mortgage, this is crucial.

They will extend the term for definite. Go into a branch or call again and extend the term to 35 years.

If you give us your mortgage numbers, will be able to tell you the saving in advance...