Mortage Payment Holidays Will NOT effect your credit file

xlnc99

https://www.yourmoney.com/mortgages/mortgage-payment-holiday-how-will-it-affect-your-credit-score/

https://www.whatmortgage.co.uk/feature/coronavirus-will-mortgage-payment-holidays-work/



Your Welcome

Willing2Learn

According to the Building Societies Association (BSA) lenders will make efforts to ensure forbearance offered under these circumstances will not result in an adverse impact on the customers’ credit scores.  What does "will make efforts to ensure forbearance" actually mean in real-life?

[Deleted User]

Identifying problems early and helping people before having to enforce late fees, defaults and so on. 

xlnc99

It will be marked as U meaning no positive or negative markers on your credit file according the the research

David_White

Just in case anyone is reading this and isn't completely clear please do contact your lender directly and request a payment holiday if it's required, don't just stop paying.

sasha20

Make sure you check what your lender puts down in writing - there have been a few reports of some lenders who are not quite playing by the rules so I'd make double sure before you proceed.

In the majority of cases, you will not get any negative data into your bureau - the expectation is that you will have 3 months of "U" marks against your mortgage which means there is no data available instead of marking it as payments made OR payments missed. Shouldn't impact anything on your credit file, especially in the longer term.

Thrugelmir

sasha20 said:

Make sure you check what your lender puts down in writing - there have been a few reports of some lenders who are not quite playing by the rules so I'd make double sure before you proceed.

No one should have defaulted yet. Events are changing by the hour. Given time everything will settle down. There's not even certainty yet that 3 months is going to be sufficient. 

michaeltoogood

hi everyone
i am a mortgage adviser running my ltd firm since many years. coz of corona virus the income is down to 0. my personal credit card and overdraft laiability is 40k and business company liability is 20k. if my company gets default i will lose the license, but if i default on my personal credit cards, i will not lose my fca license and can carry on with my work after the virus settle down.

my confusion is if i stop my personal credit card payments would it eventually close my company account which is with barclays ( i will not stop any payment of barclay)?

if i do not enter into dmp, rather simply stop my personal payments and see what happens, if company threats me of court i can bargain with them to pay half or less of my liability.
i would be very gratful if some one can advice me what to do to save money on interest as well save my fca license and job

kind regads

mwarby

You should probably look at the site rules re mortgage brokers and signatures

David_White

To be fair the guy is just looking for help regarding his personal circumstances.
I'd say the fact he's mentioned he's a mortgage broker is irrelevant.

D3xt3r5L4b

michaeltoogood said:

hi everyone
i am a mortgage adviser running my ltd firm since many years. coz of corona virus the income is down to 0. my personal credit card and overdraft laiability is 40k and business company liability is 20k. if my company gets default i will lose the license, but if i default on my personal credit cards, i will not lose my fca license and can carry on with my work after the virus settle down.

my confusion is if i stop my personal credit card payments would it eventually close my company account which is with barclays ( i will not stop any payment of barclay)?

if i do not enter into dmp, rather simply stop my personal payments and see what happens, if company threats me of court i can bargain with them to pay half or less of my liability.
i would be very gratful if some one can advice me what to do to save money on interest as well save my fca license and job

kind regads

Where's your backup/emergency funding to cover unexpected circumstances etc. such as this?