Pay mortgage or skip the payment??

hermines

Hi there
Im looking for some advice.
I have just accepted an offer on my property, and its going through the solicitors at the moment, exchange is likely to happen in 4 weeks or so. Its chain free, so I have a buyer and Im going into renting, so no chain from either end.

I have made a good amount of profit on the sale, and in the past I have struggled to pay the mortgage, and have missed payments.

Stupid as it may sound, how much trouble do you think I would get in, if I don't pay a payment to my mortgage provider this month, knowing that the property will be sold in January and they will receive the remainder of the mortgage anyway.

I have been paying payments to them fine for the last year, but they did threaten to take my to court so I had to pay 4k to them to stop this. Could they take action if I dont pay between now and the sale of the property?

Thanks in Advance.

ACG

Any bad credit will be that little bit more recent.
You might not be fussed now but in 2-3 years you might be.

hermines

My credit rating is practically zero.
My aim is to start rebuilding the history next year.

Im mainly concerned that if I miss my payment for December, within 4-6 weeks they take action, possibly court or repossession action, but they would get the payment from the sale anyway. So the fact I havent paid should be resolved quickly.

FLAPJACK

Years ago I was going through a lengthy house sale...it was so long that I got made redundant during the process.

The chain was holding together (lucky OP no chain) but I really needed the mortgage payment money each month once redundant.

I went to my lender who agreed to freeze the payments as the house was going through the selling process.....but with the proviso that should the sale fall through then in order for the payments to continue to be frozen the house would have to remain on the market.

So maybe have a word with the lender as a missed payment will go on your credit record.

As ACG alluded to think of your financial future....any black mark will be there for the next six years.

ACG

Forget your credit score, it would most likely go off the dates of the adverse with the sort of lenders you are likely to need in the future.

4-6 weeks, it would probably take them a week to realise and then a few weeks to get everything in place and a court date. Its unlikely a court would evict you with a completion imminent - BUT they could. Also what happens if the sale falls through or gets delayed?

hermines

Yes I do also have that to consider i.e. the sale falling through. Although its pretty likely to happen.

Maybe I will call the lender and give them the heads up, better to speak to them then hide away from them.

Thanks for your advice, its been really helpful and good to speak to someone about it.

Thrugelmir

hermines wrote: »

Maybe I will call the lender and give them the heads up, better to speak to them then hide away from them.

Better to be honest and upfront. Far less stressful as well.

With Xmas approaching you may find 4 weeks an optimistic time scale in which to exchange contracts. Particularly if your buyer requires a mortgage.

Goldiegirl

They'll be more likely to agree to a missed payment if you have a good reason for it........ Missing a payment because it's Christmas won't be regarded as a good reason.

So make sure you have an honest, acceptable reason for being short of funds this month

An acceptable reason might be something like you have an unexpected bill for an essential repair. But be careful, they might ask to see the bill!