Barclays won't give me a mortgage holiday - help needed

kirsteenatom

nidO wrote: »

The only "extra" thing you'll be having to pay back is interest.
Say you take a payment holiday, all that's doing is effectively adding the value of your monthly payments to your mortgage (by it not being paid down) plus mortgage interest, which will be paid off when you sell the house.
The alternative as suggested is to take your mortgage payment amounts as an overdraft, cash advance on your credit card, etc and pay the mortgage with that, meaning your mortgage will be lower by that amount when you come to sell the house, and that difference can be used to pay off the card/bank, minus interest.

The principal is the same (your monthly mortgage payments), the only difference is the amount of interest your overdraft/card charge you above the interest your mortgage charges you.

There is therefore no "racking up a debt" or not as you're going to do so anyway and pay it off in the same way by selling the house, the difference is just whether it's:

1) low interest by taking a payment holiday (which it seems you can't do)
2) low interest but trashing your credit record by missing payments (bad for the future)
3) higher interest by borrowing your mortgage payments from an overdraft or credit card, which is both easy and won't negatively impact your ability to get credit in future.

I do get the point that several of you are making. I guess it just "feels" like it is debt in a different way but a mortgage holiday would be racking up debt too.

I was hoping there was a way to avoid this as a run of bad luck involving a flood, storm damage and bereavement have run through my savings and left me quite low on funds and resilience.

Thank you for your reply

pjread

[QUOTE=kirsteenatom;[URL="tel:[URL="tel:65076976"]65076976[/URL]"][URL="tel:65076976"]65076976[/URL][/URL]]Thanks for your reply. It is the other side of London. I commuted for the first six months but it was a two and a half hour drive each way and I couldn't really sustain it. It might come to that again I guess.[/QUOTE]

I'm on my 2.5hr commute right now. Not much fun but 7 years on it seems sustainable, if not desirable... Is rail rather than car an option? (can at least grab a book or something then, and might even be quicker depending exactly where you are going from/to)

And as others say, I'd definitely make the mortgage the priority, not the rent. Might even be able to negotiate an early dissolution of your tenancy if handled well.

getmore4less

You did start a business, a letting one and filed to have contingency etc.

Anyway that aside it does not fix your problem.

The obvious is move back into the house and commute again.

The house will be more secure and probably going to be easier to sell.

The mortgage is not the problem the rent is.

A 0% purchase CC could help with cash flow
Barclays may(but unlikely) consider a temporary move to interest only, what's the mortgage size and the interest rate

Another option might be the mortgage reserve IF you still have one, although that will be at SVR, check your mortgage current account for the overdraft limit.

How much equity in the house, a quick sale needs a competitive price but you may be lucky if in an area that is rising.

To help with the commute(if family commitments allow) an odd overnight in a B&B or cheap hotel can work mid week.

Goldiegirl

kirsteenatom wrote: »

Mse must Have changed a lot. I believed the forums were set up to mutually support and advise not to make smug comments at the expense of someone else.

I appreciate all serious responses where someone has at least read my query properly but I wonder at the motivation of some replies.

People are just being honest with you - the problem is, people tend to disregard or dislike the honest answers, because they are telling them things they don't want to hear.

getmore4less

A post from 2012 says you overpaid how much that might be available in the reserve.

Although Barclays tidied up a lot of reserves taking the drawdown facility away

Thrugelmir

kirsteenatom wrote: »

Self dug? This response seems more appropriate for someone who has run up credit card debt than for a single parent who has been burned by a tenant.

Single parent has no relevance. You are running a business. With this comes risk and reward. There are plenty of people in this world who will happily shaft someone else for money or intentionally cause damage for example. These are contingencies that have to be allowed for in the business plan.

Too many people are overly optimistic as to the returns when it comes to letting property. Not least as they don't prepare a business plan nor do they put sufficient money away in reserve.

mrginge

kirsteenatom wrote: »

I didn't start a business. I relocated. Thanks for your sarcasm.

There was no sarcasm.
You did start a business.

You chose to avoid commuting time and costs, offset against the risks of letting and a grand a month.

I suggest you do what you should have done previously and work out a properly costed plan with a risk analysis before you jump from one mistake straight into another.

Thats what people who run businesses do.