mortgage holiday

billozz

i have a friend whos husband has had a heart attack and wont be able to work for some time, they are with c&g building society and have been told they cannot have a payment holiday, is this correct i thought most lenders would offer this as a stopgap until he is well enough to work again.
any other advice would be most welcome.
thanks
Bill

Thrugelmir

There's no requirement for lenders to permit payment holidays. The onus is borrowers is to manage their money in such a way as to have emergency savings when misfortune strikes.

kingstreet

Payment holidays are for those who have build up a buffer of overpayments over the years. Without that, they are simply going into authorised arrears and this will show as an "arrangement to pay" on their credit file.

If they are likely to suffer financial hardship, they should contact the lender to discuss their options, but they should not present this as a "payment holiday."

billozz

Thrugelmir wrote: »

There's no requirement for lenders to permit payment holidays. The onus is borrowers is to manage their money in such a way as to have emergency savings when misfortune strikes.

yes i appreciate that, but how many people can affrod to do that?

billozz

kingstreet wrote: »

Payment holidays are for those who have build up a buffer of overpayments over the years. Without that, they are simply going into authorised arrears and this will show as an "arrangement to pay" on their credit file.

If they are likely to suffer financial hardship, they should contact the lender to discuss their options, but they should not present this as a "payment holiday."

thanks for the reply, any advice on how they can get some help or how they should approach the society.

Thrugelmir

billozz wrote: »

yes i appreciate that, but how many people can affrod to do that?

People fall into distinct camps spenders and savers. Those that party always have live with the risk that one of the 3 D's will strike, Distress, Divorce or Death. As bring with them enormous financial problems for the unprepared.

kingstreet

billozz wrote: »

thanks for the reply, any advice on how they can get some help or how they should approach the society.

Call the lender. No other option if they want to reduce their payments for a time.

_Andy_

billozz wrote: »

thanks for the reply, any advice on how they can get some help or how they should approach the society.

What advice do you want? They've been declined.

Goldiegirl

_Andy_ wrote: »

What advice do you want? They've been declined.

There may be other options available, such as a reduced monthly payment for a short period of time, or switching to interest only for a whole or extending the mortgage term.

They might have been declined for a mortgage holiday, but there are other avenues that can be explored.

piglet74

Tell them to ask for interest only for 6 months, we got this before when my husband got paid off,

billozz

Thrugelmir wrote: »

People fall into distinct camps spenders and savers. Those that party always have live with the risk that one of the 3 D's will strike, Distress, Divorce or Death. As bring with them enormous financial problems for the unprepared.

no im sorry there is another camp that you have completely missed, those that earn just enough to live on and have nothing left to save.