Temporary Interest Only

chipsmum

Can anyone offer any advice on approaching NRAM to make interest only payments for the next 1-2 months ?
I have been a customer for many years with my current mortgage running for 12 years. My outstanding balance is around £138k and my house is probably worth at least £260k.
Due to a job change and some totally unforeseen events, I am struggling to meet this month's payments and might have the same problem next month. After that I will be able to return to normal repayment terms. I have only ever been late with one payment because of their system problem. Will they look favourably on me and if so, any idea how they would want to collect the capital payments missed ?
Many Thanks

HappyMJ

Have you signed on for job seekers allowance. Send them a copy of the benefit notice showing very limited income and they might just allow a full payment holiday until the DWP pays the interest on your mortgage.

The payments missed could increase the remaining payments or they could add them onto the end of the term. It's up to you.

It's unlikely if you keep in contact they will take action for quite a long time. If you find towards the end of the period that the DWP pays your interest for you might want to consider selling before they force you to.

chipsmum

Thanks HappyMJ
I am not eligible for JSA as I have a pension from a previous employer but can show them P45 from leaving latest employmennt on 15th August. I started a new job a couple of days ago but not sure if I will be on the payroll in time for this month and haven't the correct holiday payfrom last job either yet so just need a bit of breathing space to get things sorted.

Thrugelmir

Expect to answer a full inquiry into your household budget. NRAM will also perform a full credit check. Better to default on other unsecured debts before the mortgage ( if you have any that is).

chipsmum

Eek Thrugelmir, so it's not just as simple as asking for 1-2 interest only monthly payments out of a 280 month term as I have been unemployed for a couple of months and have had other unexpected commitments ?
Is the credit check and detailed expenditure check to identify if I am a bad risk that they will want rid of or is it to prove I can actually afford to pay the full amount ?
Do you know if they would also ask for a valuation on my house too ?
I take your point about defaulting on other things instead but that would mean not paying utilities, council tax, life insurance, home insurance, tv license etc etc.
It's true what they say about most of us being one crisis away from poverty !

Armorica

Ring them up and ask. If they want the full financial history, then think again.

Systems-wise, it is probably easier to simply ask for a payment holiday rather than to offer interest-only payments. If you can prove you've got a new job lined up, they may not get overexcited.

Warning hazard here tho https://forums.moneysavingexpert.com/discussion/4050913 when they've agreed one in the past, it's not actually been implemented...

You should also ask your new employer for clarity over when you will get paid, and if necessary whether they might consider an advance.

Thrugelmir

chipsmum wrote: »

Eek Thrugelmir, so it's not just as simple as asking for 1-2 interest only monthly payments out of a 280 month term as I have been unemployed for a couple of months and have had other unexpected commitments ?
Is the credit check and detailed expenditure check to identify if I am a bad risk that they will want rid of or is it to prove I can actually afford to pay the full amount ?
Do you know if they would also ask for a valuation on my house too ?
I take your point about defaulting on other things instead but that would mean not paying utilities, council tax, life insurance, home insurance, tv license etc etc.
It's true what they say about most of us being one crisis away from poverty !

Indeed, when it happens to oneself it's a real eye opener. Knocks away any complacency. For many people is a light bulb moment as to what's important in life.

From a lenders point of view. They are under increasingly onerous regulation to lend on an affordable and responsible basis. So knowing the customer is a basic requirement in making any decision. Each case has to be judged on it's own merits. A lender will also take a subjective view looking ahead as well into the future. As what starts as a temporary arrangement may be the top of a slippery slope.