Mortgage payment holiday -Advice please?

lotto-dreamer

I know this isn't very money saving - but it would be helpful at the moment and I'd like some advice

I have a 3 year fixed rate with Northern Rock which ends next August (2008)

My mortgage T & C states "following 9 full consecutive monthly payments you may apply for a one-month payment holiday. In certain circumstances you may apply for up to 6 months payments holiday"


Has anyone done this? what are the criteria for more than one month? I would be grateful for some advice.

The reason is that I have decided to sell my house -get rid of debts - and rent. Money is tight at the moment and I have never missed any payments on anything but am finding it harder and harder. I want some breathing space while I get things sorted.

silvercar

Be aware that the payment missed will be rolled up into the mortgage and interest charged. The gain is that the missed payment won't be a blot on your credit rating.

If you are selling up, then asking for a payment holiday will ease things for you. Make sure you ask and get agreement, don't just miss a payment.

lotto-dreamer

silvercar wrote: »

Be aware that the payment missed will be rolled up into the mortgage and interest charged. The gain is that the missed payment won't be a blot on your credit rating.

If you are selling up, then asking for a payment holiday will ease things for you. Make sure you ask and get agreement, don't just miss a payment.

Thanks! I definitely would not miss a payment without arranging it and I am aware of the extra interest implications etc

Do you know (or anyone else) know whether it takes a while to arrange for the payment holiday or do they make a quick decision i.e next month's payment (due 5th)

Wondering what reason to give - extra expenses -or to be frank and just say I am going to be selling up and need breathing space

squibbs25

We took a 2 month payment holiday when hubby changed jobs. We are with the halifax and never had any probs with it. (was truthful, stated job change as reaon for break).

kd811

if you ring up tomorrow they should be able to arrange it in time for next month;s payment provided that you have made 9 consecutive payments...if you've made 18 you can take 2 holidays and if you've made 27 payments you can take 3 moth holiday

Woby_Tide

also it might be worth asking about the terms of it, we were advised by another lender a while back that if you ask for a 1 month holiday, you then forfeit the right to a longer one despite your 'years of service'. If you ask for 3 or 6 montsh up front but then only use 1 thats fine also, but you have the luxury in case of disaster to keep taking the holiday(say if the move unexpectedly dragged on for a second month)

lotto-dreamer

A big thank you again everyone for your help and advice!

I finally plucked up the courage and phoned NR to ask if I was eligible to take payment holiday. It was much easier than I expected. They checked my payment records for my mortgage (three year fixed which has about 10 months still to run) and said I had paid long enough to take up to three months! At the end of the fixed rate, the payments (with interest) can be paid up at that point or even rolled over onto a new mortgage with them if I wished to do it that way.

Apparently it starts from next month and will be for Nov, Dec and Jan.

As I said, not very money saving (sorry Martin!) but it will give me some much needed breathing space and they confirmed it will not affect my credit rating.