Redundancy Mortgage options

felly117

Hi all I was hoping you could help and give me some advice.

I recently volunteered for redundancy. I got a decent pay out of £30k. Now I'm wanting to do a PHD full time which will give me a tax free stipend of £14k a year for 3 years.

My problem is that during these 3 years money will be tight. My monthly expenses are roughly £1500. Now I've worked out that I can just about afford this but I'll be in a difficult situation when I graduate.

I've asked the bank if it's possible to get a mortgage holiday but they've informed me that they don't do this. I'm locked in to my mortgage until October 2018. The bank has sent me an expenditure form to fill in and send back to them. I've filled in the form but not sent it yet. Now the form looks grim as it doesn't allow you to put in your savings so on paper I appear to not be able to pay my bills.

Is there anything I can do to lower my payments. If the bank gets the form will they actually help me.

PS. I have no credit card or loan payments each month.

Cotta

We would need more information for example:

1. How big is your existing mortgage?
2. What is the rate and the repayment term?
3. Do you plan to work part time during your PHD?

felly117

Cotta wrote: »

We would need for information for example:


1. How big is your existing mortgage?
2. What is the rate and the repayment term?
3. Do you plan to work part time during your PHD?

Hi. 80k outstanding on the mortgage.
Repayment is £500 p/m for another 31 years.
I don't plan to work part time as honestly I don't think I will have the time. I'm doing the PHD in Nuclear Physics so will be having to work hard on it.

Neutrinno

Yes they will attempt to help you as it is their duty. Also from a commercial point of view they would rather help you meet your payments as opposed to maybe eventually having to go through repossession proceedings and selling the property if things got out of control.

I'd avoid pushing for payment holiday as this will no doubt damage your credit score, as it would go down as late or missed payments for that month. They should explore the options of lower monthly payments by possibility extending the term of your mortgage or any other alternatives.