Northern Rock & payment breaks

debfitzy

We currently have our mortgage with NR with options for payment breaks. We were banking on this to enable us to go on holiday next year, we can take 2 months break in April but I'm worried that whoever takes over won't offer the payment break option - do you know if they will have to honour the agreement or should we at least take the 1 break that we are entitled to now just in case?

dunstonh

do you know if they will have to honour the agreement or should we at least take the 1 break that we are entitled to now just in case?

They do not have to allow payment breaks if they do not want to. Whilst certain things are safe from being changed, that is something that wouldnt be.

Also, with respect, I suggest you look at your priorities. Not paying your mortgage so you can go on holiday is not exactly sensible financial planning and over 20-30 years that will be one hell of an expensive holiday in the long run due to the extra interest you will be charged.

The facilility is there to help in months of struggle and give you an authorised ability to go into arrears without it being held against you.

kingkano

Out of interest dunstonh, what stuff WILL be protected from the contracts? (overpayments, underpayments, etc). I'm about to make a big overpayment but will want the money back in 2-3yrs time probably. Everything about overpayments and payment holidays is in my contract I signed, I thought any new owner would have to honour the contract as is? Not that they could pick and choose the points they would strike off. What would then stop then cancelling your fixed rate? etc.

Many thanks.

PS I agree about the holiday point to the OP. Please consider this. It would be much cheaper for you to take a holiday on a different form of credit and pay back as quickly as possible, rather than 25yrs!

poppy10_2

dunstonh wrote: »

Also, with respect, I suggest you look at your priorities. Not paying your mortgage so you can go on holiday is not exactly sensible financial planning and over 20-30 years that will be one hell of an expensive holiday in the long run due to the extra interest you will be charged.

Great point dunston. Just another indicator that this country is going straight down the tubes. If you can't afford a holiday without defaulting on your mortgage payments, then you can't afford a holiday, period. People need to learn to live within their means.

debfitzy

Thanks for your replies.

However, I did not ask your opinions on what I'm taking a payment break for. I appreciate some of your points seem to be aimed at helping and considering other options but I take offence at the tone of poppy10's reply.

17Dave

Hi debfitzy
Try not to take too much offence at the replies - most posts on these type of forums has to be general as we do not know your circumstances in detail.
The "don't put a holiday on your mortgage" is sound advice for most people.

I do agree that poppy10 was a bit strong though.

Regarding NR you should be OK in the short term as the deal with Virgin or whoever is unlikely to be completed by April / May 08.

boredofbeingathome

debfitzy wrote: »

We currently have our mortgage with NR with options for payment breaks. We were banking on this to enable us to go on holiday next year, we can take 2 months break in April but I'm worried that whoever takes over won't offer the payment break option - do you know if they will have to honour the agreement or should we at least take the 1 break that we are entitled to now just in case?

Hi we are with NR as well and are tied into a 2 year deal,finish in june 09, but one of the main reasons we have a mortgage with them is the low interest rate, and the ability to overpay and if we want to -take a mortgage break. We signed on the dotted line because of the product and i feel that whoever takes over should honour that. On another note i had a virgin mastercard which is run by MBNA, and after the 0% deal was up they kept it at 15.9% for a couple of months and then hiked it upto 24% then 34% within about 5 months- i never missed a payment and paid by DD. Needless to say i got rid. So my long winded point is that if they take over then we move mortgage as i refuse to deal with such shisters:mad: