Unable to pay mortgage for one month

Annisele

Lenders honestly have no interest whatsoever in repossessing when somebody is just one month in arrears. Repossession is a huge amount of hassle for them.

Even if you didn't have the overpayment reserve, if you had a credible plan for paying off the single month's arrears they wouldn't start to repossess. (That doesn't necessarily mean there'd be no effect on your credit rating though).

Lenders really don't like it when people don't talk to them. In that case, they don't know whether you're in short term financial difficulty, or whether your plan is never to pay them anything ever again.

If you're confident that your financial difficulties really are short term, I suspect you'll feel much better after you've talked to them.

northerner999

It'll actually be a very comforting exchange, especially if you go in to your local branch and see their advisor face-to-face.

If you have overpaid by £1,500 then go in and explain you have had some unexpected expenditure and need a one-month payment holiday. If this is your first time and your circumstances are as good as you describe (less than 30% of value, never missed a payment etc), they'll be very understanding and it won't have any lasting negative impact - other than, I suspect, ensuring you try and save that little bit more in your rainy day fund in future!

markinmanc

Thanks everyone. I've applied for a bigger overdraught. Didn't think I could, but after the post above I decided to check again, so if successful that will help. Should get an answer in the next 24 hours.

Regardless of that I will go to my local branch and have a chat and see what they say.
I'm 11 years into a 20 year repayment mortgage, on a fixed rate at the moment and like i say haven't missed a payment yet.

Houses where I live are on sale for about three times my outstanding balance, which is how I came up with the 30% figure.

In hindsight, I've made some bad decisions round my finances, which I am now putting right.

Thanks again everyone.

maninthestreet

It's 'overdraft' not 'overdraught', which sounds like some sort of breeze.

markinmanc

Thanks for all the advice on here, it was really useful! Contrary to what I expected I got an increased overdraft - and not a larger flue!

Spoke to the Nationwide, got it all sorted in about fifteen minutes, including being on hold.They'll take the next payment from my overpayment. I'll be back on track soo.

Thanks again. If this has shown be one thing it is how little I know about my own finances.:embarasse

latecomer

But at least you know what you dont know much about - you can start doing something about it

markinmanc

Guess what - the nationwide tried to take the payment, cue a phone call to the Co-op. And back to the Nationwide. And so on. Tile the woman at the co-op suggested I cancel the direct debit and just reinstate it in a branch.
Luckily, no charges are showing on my account. At least for now. :eek:

Goldiegirl

Glad it got sorted, even though they did try to take your payment!

When I worked for the Halifax, it was very common for people to need to take a short holiday from mortgage payments. What the banks like is for their borrowers to talk to them. The advisors are nearly always sympathetic and will work with the borrower to find a solution acceptable to both parties.

What banks don't like is when the borrowers stop paying and make no contact.

That's when they get nervous, and increasingly worrying letter are sent, counsellors are sent to the house to see what's going on, and if all that fails to reach a solution then legal action would start.

Generally a mortgage would be at least 4 months in arrears before legal action would start, even more if the mortgage was low in relation to the value of the property.

One missed payment doesn't result in the bailiffs knocking on your door to take possession!

Thrugelmir

markinmanc wrote: »

Guess what - the nationwide tried to take the payment,

Don't panic. Direct debits are set-up for collection around 10 days in advance of the due date. Once set-up it's not possible to amend the entire run for individual adjustments.

markinmanc

Thrugelmir wrote: »

Don't panic. Direct debits are set-up for collection around 10 days in advance of the due date. Once set-up it's not possible to amend the entire run for individual adjustments.

Makes sense - as the payment due out today was meant to be for £0.00! I'll go in to a branch tomorrow to speak to someone, the letter from nationwide was dated 22/11/2012 so maybe it didn't get processed in time.
I had a problem with my first payment years ago actually - it was more than the monthly payment and they just didn't take the amended amount.
I just hope all this doesn't have come up on my credit rating.

Odd thing is, whilst the Co-op have contacted me, Nationwide haven;t and they have my mobile as a contact number.