Taking an organised mortgage break with after already taking the 6 month break

JBKSTN

Hi there
My other half has been made redundant. Like many people out there, she's been job hunting and doing what she can to find something else, but it's tough out there right now, and as a result, money is tight.  I was also on furlough for 5 months, so we have taken a mortgage break offered by the bank (Nationwide) for the 6 months. This is now coming to the end on the 30th of this month.
I spoke to NW and they have can offer an additional 3 months, though the've said it will affect my credit rating, though they can't say by how much. My credit rating is currently rated excellent, so I am weighing up whether to taking their offer, and see if I can recover my credit rating before we remortgage in 18 months time. 
Does anyone know how much this type of mortgage break will affect your credit rating? 
I can just about afford to cover the mortgage for our house (and all the other outgoings), though it's going to be very tight, especially with December being the expensive month that it is. 
Any advice would be appreciated, or if you can point me in the direction of any other professional advice, that would be great.
Many thanks

TadleyBaggie

Your credit rating (as displayed by the various CRAs) is a fictitious number that only you can see. So the effect on the number is neither here nor there. The question you need to ask them is what exactly are they going to put on your credit history regarding your mortgage.

MWT

Hopefully one of the brokers on here can give you more specific advice, but the point to keep in mind is that it isn't your 'rating' you need to worry about, the scores the various sites give you are not what the lenders care about, so this isn't about improving your score over the next 18 months.

This will be about having the late payments showing on your credit history when you come to apply for a mortgage, so that is where a good broker can help you understand the significance of those adverse markers within the last two years...

MWT

... also when you say 'remortgage' do you plan to move house or remortgage with a different lender, or is it just that your current fix ends in 18 months time?

If it is just the current fix expiring then you will probably be able to take a retention product from your current lender without re mortgaging...

... and do make sure you understand what these 'holidays' are going to cost you in terms of increased monthly payments or changes in the term, and consider if you have the option to overpay when your finances as strong again so you can reduce the impact the holidays have had on your total payments over time...

bamgbost

MWT said:

... also when you say 'remortgage' do you plan to move house or remortgage with a different lender, or is it just that your current fix ends in 18 months time?

If it is just the current fix expiring then you will probably be able to take a retention product from your current lender without re mortgaging...

... and do make sure you understand what these 'holidays' are going to cost you in terms of increased monthly payments or changes in the term, and consider if you have the option to overpay when your finances as strong again so you can reduce the impact the holidays have had on your total payments over time...

This is an important point. As a retention product will mean you not needing to do a credit check again.  We recently did the same.

Its a difficult period and tough decisions ahead. But Good luck!

Thrugelmir

Although you were furloughed. Stopping your mortgage payments entirely wasn't a good idea. Do you use the money to repay other unsecured debts? 

Your credit "rating" is based on your ability to repay money. Ignore the numbers that you see. Lenders base decision on the hard facts. 

enthusiasticsaver

It depends what they put on your record. Missed or late payments may affect your remortgage although if you stick with current lender you should be ok. Personally I would cover the mortgage by cutting back on other stuff. You are going to have to do that anyway if your OH has been made redundant.  If you were furloughed on presumably 80% pay could you not cover the mortgage payment or at least have money saved to help you over this 3 month period? 

JBKSTN

MWT said:

... also when you say 'remortgage' do you plan to move house or remortgage with a different lender, or is it just that your current fix ends in 18 months time?

If it is just the current fix expiring then you will probably be able to take a retention product from your current lender without re mortgaging...

... and do make sure you understand what these 'holidays' are going to cost you in terms of increased monthly payments or changes in the term, and consider if you have the option to overpay when your finances as strong again so you can reduce the impact the holidays have had on your total payments over time...

Thanks for your reply. 
The bank confirmed that they would report an "A" for Arrangement, as I would continue paying the interest, as I have been the past 3 months. I did this to ensure that our monthly amount wouldn't' increase any more than it had after taking the first 3 months as a total mortgage break.  
I didn't know about the retention product info, we will remortgage because our current fix ends, also because we've done a house renovation and would like to mortgage against it's value since the work done.
Appreciate your advice.

JBKSTN

enthusiasticsaver said:

It depends what they put on your record. Missed or late payments may affect your remortgage although if you stick with current lender you should be ok. Personally I would cover the mortgage by cutting back on other stuff. You are going to have to do that anyway if your OH has been made redundant.  If you were furloughed on presumably 80% pay could you not cover the mortgage payment or at least have money saved to help you over this 3 month period? 

Thanks for your reply,
Yes we've been very careful over the last few months, so I'm thinking cutting back is the better option and ride it out as long as possible.
Appreciate your advice

JBKSTN

TadleyBaggie said:

Your credit rating (as displayed by the various CRAs) is a fictitious number that only you can see. So the effect on the number is neither here nor there. The question you need to ask them is what exactly are they going to put on your credit history regarding your mortgage.

Thanks fir your reply. They are would report an "A" for Arrangement, as I would continue paying the interest. I am going to try and avoid this if possible.
Appreciate your reply.

JBKSTN

bamgbost said:

MWT said:

... also when you say 'remortgage' do you plan to move house or remortgage with a different lender, or is it just that your current fix ends in 18 months time?

If it is just the current fix expiring then you will probably be able to take a retention product from your current lender without re mortgaging...

... and do make sure you understand what these 'holidays' are going to cost you in terms of increased monthly payments or changes in the term, and consider if you have the option to overpay when your finances as strong again so you can reduce the impact the holidays have had on your total payments over time...

This is an important point. As a retention product will mean you not needing to do a credit check again.  We recently did the same.

Its a difficult period and tough decisions ahead. But Good luck!

Thanks for this, good to know it's a possibility if necessary.
All the best!