Applying for temporary period of Interest Only on my mortgage

Megzly99

Thanks for taking the time to read my post. Any advice will be greatly appreciated!
In short, I have a repayment mortgage with Leeds Building Society and I have never missed a payment. I contacted them requesting a temporary 6 month period making interest only payments. I explained that it was due to having to take unpaid leave at work in order to look after my ill child. Their response was no and they advised that I should contact anyone else I have bills with and ask them to accept lower payments. I stressed that I was concerned about receiving charges and credit rating being affected. Answer remained as no.
Few months down the line, I've incurred several charges for the not being able to make minimum repayments on my other bills in order to ensure my mortgage is paid. I'm at my wits end as I know going interest only for 6 months will allow me the breathing space to get my finances back on track. I'm about to write a letter of complaint but I'm not sure what exactly to say.
Has anyone experienced anything similar? Any advice?

haras_nosirrah

Unfortunately I don't think a complaint is going to get you very far. While the circumstances are very unfortunate (and I hope your child gets better soon) you did agree a repayment of xyz to the lender for a certain period of time. The interest only criteria is very very strict now because of all the imposed regulations so a lot of lenders are not allowing people to switch to interest only (as they may not then switch back and will claim it was missold to them at some point)

Your mortgage is a priority debt and comes before other creditors - pay them £1 a month until you are financially on an even footing but unfortunately your credit score will be shot to pieces. If they put you onto a payment plan they may stop charging interest and charges

pop over to the debt free wanabee forum and post your statement of affairs as people may be able to suggest things that can help you.

dunstonh

I'm about to write a letter of complaint but I'm not sure what exactly to say.

The regulator has told lenders not to use interest only as a means of affording the mortgage. Whilst this was primarily aimed at new borrowers, many have applied to all forms of borrowing. Plus, with complaints up about interest only mortgages (i.e. should have been on repayment basis) you cannot blame the lender for not allowing it.

It would be difficult to see what your complaint would be about as they are not doing anything wrong.

I can only echo the above and use that other forum section as they have some very good posters in there to help those in bad financial situations. Do remember that you should treat the mortgage as being paid before anything else where you can.

Megzly99

Complain was the wrong choice of words to describe what I mean. More like beg!!!!

shop-to-drop

Have you looked at whether there is any help from charities that support families when their child is ill? Think it will rather depend on the childs illness whether it is a solution. Your doctor or social worker may be able to find out for you. Or google may find something for you.

Thrugelmir

Megzly99 wrote: »

Complain was the wrong choice of words to describe what I mean. More like beg!!!!

Default on your other debts before the mortgage.

Contact the National Debt Helpline

https://www.nationaldebtline.org/EW/Pages/default.aspx

for support and advice.