Halifax Mortgage - payment holiday

oceanscape

Need to replace tiling on our roof and short of cash so hoping to take a one month mortgage payment holiday.

Couple of questions:
1) Will this impact our credit score?
2) If it doesn't impact our external credit score, will it impact our credit rating with Halifax itself? We are intending to apply for additional borrowing on our mortgage next year - will the fact we took a payment holiday damage our chances of being accepted for this?

Thanks!

John424

My answer would be I think not in both cases. I took a Halifax holiday for 5 months, you are allowed 6 months I think in the lifetime of the mortgage for a decent reason and I'd say improving your asset by replacing tiling is a very good one! I did not notice any adverse effects of doing so, my credit score is 997 out of 1000 now!

dimbo61

You need to ASK your lender if you can take a mortgage holiday

oceanscape

John424 wrote: »

My answer would be I think not in both cases. I took a Halifax holiday for 5 months, you are allowed 6 months I think in the lifetime of the mortgage for a decent reason and I'd say improving your asset by replacing tiling is a very good one! I did not notice any adverse effects of doing so, my credit score is 997 out of 1000 now!

Thanks.

My worry is that the lady I spoke to said something about the holiday showing up on my credit report as a missed payment?! and that I'd need to send a letter to Experian etc. explaining it was an authorised payment holiday? So confused!

oceanscape

dimbo61 wrote: »

You need to ASK your lender if you can take a mortgage holiday

No !!!! sherlock!

opinions4u

oceanscape wrote: »

No !!!! sherlock!

You'd be surprised how many don't go through the right process.

holly_hobby

It would show as missed payments/arrears on your payment profile with CRAs (experian etc) - as the lender has a duty to report the conduct of the account, and even though the payment holiday is by arrangement, technically you are in arrears (albeit with the lenders tacit agreement).

Accordingly, if you were to later seek a new mortgage (either a remortgage or new house pch) with an alternative mortgage provifder, you would flag up and explain the authorised holiday as part of your application (which may involve the lender requesting a lender reference to verify the missed payments).

CRA "scores" have little corrolation to how a mortgage lender scores and assesses a mge application.

Hope this helps

Holly

Goldiegirl

When I was at the Halifax, if a customer had an agreed payment holiday, an indicator was placed on to the account, so that when the agreed payments were missed, the mortgage would not show as being in arrears.

I don't know how this affects your external credit score, but internally with the Halifax you shouldn't be adversely affected