RBS / redundancy / interest only

andbrads

Hi all,

I’m wondering if anyone has experience of RBS’ policy if you’re made redundant? I am likely being made redundant around June when my 6 month cost of living support / interest only period ends. Obviously I am looking for work but should I not find any, what are the odds of RBS allowing me a further interest only period? If so, would they put me in some kind of arrangement which affects my credit rating? My LTV is around 48% and I have never missed any payments.

I have enough savings to cover the interest only payments for some 8 months or so, but with the capital included this would be much shorter. Ideally I would like another 6 months to the end of the year to give me some breathing space to find work and also hopefully rates to have eased a little.

Grateful to hear from anyone with similar experiences, I believe NatWest owns RBS so may take a similar stance?

ACG

They will likely only let you remain on interest only if you miss your full repayment. Then they will probably start to negotiate, but it will affect your credit report. 

andbrads

ACG said:

They will likely only let you remain on interest only if you miss your full repayment. Then they will probably start to negotiate, but it will affect your credit report. 

OK thanks, so there is no way to get interest only without it affecting my credit rating. 

ACG

I dont think so. 
Ask them the question as things change. But I am 99% sure it will. 

Hoenir

andbrads said:

ACG said:

They will likely only let you remain on interest only if you miss your full repayment. Then they will probably start to negotiate, but it will affect your credit report. 

OK thanks, so there is no way to get interest only without it affecting my credit rating. 

Perfectly reasonable that if an individual is under financial duress. That is relayed to other users who pay sizable fees for such information in order to make commercial decisions. Otherwise the information available would be useless. We would return to an era where everything would cost more as the risk exposure for lenders would be greatly increased and defaults considerably higher. 

ACG

Hoenir said:

andbrads said:

ACG said:

They will likely only let you remain on interest only if you miss your full repayment. Then they will probably start to negotiate, but it will affect your credit report. 

OK thanks, so there is no way to get interest only without it affecting my credit rating. 

Perfectly reasonable that if an individual is under financial duress. That is relayed to other users who pay sizable fees for such information in order to make commercial decisions. Otherwise the information available would be useless. We would return to an era where everything would cost more as the risk exposure for lenders would be greatly increased and defaults considerably higher. 

Your a cheery soul arnt you! Jesus. We have someone who is struggling or will be in the very near future and your response is this? 

I can be pretty direct at the best of times, but I dont think they need this. They are trying to look at what they can do and the implications of those actions - thats a positive. 

I cant believe I am the one suggesting empathy. I must be getting softer as I get older. 

andbrads

It’s OK, I know every action has a consequence. My credit rating is currently quite good at 680 on Credit Karma. It would make me very uncomfortable to miss a payment but if that’s needed to trigger a process and then I immediately pay the interest then perhaps worth it.

I’m wondering how much my score will be knackered by and whether this would impact the credit limits on my credit cards, I don’t have anything on them at the moment but it’s good to have that as a buffer should the proverbial really hit the fan. Also would they still offer me the same deals come remortgage time?

ACG

Forget your credit score, its imaginary. 
If you miss a mortgage payment it will take a big hit - more than if you missed a credit card payment. That goes for paying the interest only rather than nothing as it will still show as a status 1. It might then take a couple of months to go to a status 2 and so on rather than just going up month after month. 
It should not affect your credit card limits. 

Im not sure, I think for most lenders they will allow you to switch products if you are up to date on your repayments. 

Hoenir

ACG said:

Hoenir said:

andbrads said:

ACG said:

They will likely only let you remain on interest only if you miss your full repayment. Then they will probably start to negotiate, but it will affect your credit report. 

OK thanks, so there is no way to get interest only without it affecting my credit rating. 

Perfectly reasonable that if an individual is under financial duress. That is relayed to other users who pay sizable fees for such information in order to make commercial decisions. Otherwise the information available would be useless. We would return to an era where everything would cost more as the risk exposure for lenders would be greatly increased and defaults considerably higher. 

Your a cheery soul arnt you! Jesus. We have someone who is struggling or will be in the very near future and your response is this? 

Perhaps you need to learn to distinguish between an informed response and a personal viewpoint. Some people do actually work in the real world of finance. Better than playing the nice guy on a forum for personal gain. 

ACG

Hoenir said:

ACG said:

Hoenir said:

andbrads said:

ACG said:

They will likely only let you remain on interest only if you miss your full repayment. Then they will probably start to negotiate, but it will affect your credit report. 

OK thanks, so there is no way to get interest only without it affecting my credit rating. 

Perfectly reasonable that if an individual is under financial duress. That is relayed to other users who pay sizable fees for such information in order to make commercial decisions. Otherwise the information available would be useless. We would return to an era where everything would cost more as the risk exposure for lenders would be greatly increased and defaults considerably higher. 

Your a cheery soul arnt you! Jesus. We have someone who is struggling or will be in the very near future and your response is this? 

Perhaps you need to learn to distinguish between an informed response and a personal viewpoint. Some people do actually work in the real world of finance. Better than playing the nice guy on a forum for personal gain. 

I did not realise my response was not informed. There is no harm in having a bit of empathy is there?