Mortgage Holiday

Carol1963

Sorry but back again (twice in 2 days),   What do people think about enquiring about a mortgage break - should I/us feel embarrassed if we do?

CliveOfIndia

Some context may help - but there's nothing to be embarrassed about if you're struggling.  Do bear in mind that it will only be a temporary measure - if you're going to struggle to meet your repayments in the longer term, then you'll need to look at other solutions.

And do remember that the arrangement will be recorded on your credit file, which could very well impact your ability to get further credit in the future.

Brie

As @CliveOfIndia says a mortgage break will be recorded in your credit history.  And likely the bank itself will have a note of a request, whether it's successful or not.  But asking for a break is a much better thing then to simply stop making payments because you can't afford them.  Banks know much better now that they should work with their customers to help them through difficult periods rather than make life more difficult.

The best approach is to put together a thorough and realistic budget  - the SOAs people post here are a great way to start.  List everything you actually spend based on your credit card and bank statements.  Don't try to white wash anything.  Then look at what you know you can improve on (gym or subscriptions you can definitely cancel asap etc rather than "I think I can cut down on smoking"(though that would be great too)).  List all your monthly bills, all your DDs, that £5 for Starbucks.  Look at your income, can that be increased by applying for benefits or?  

If at that point the mortgage is still the pinch point consider how much you could afford and when that might change for the better.  At this point go to the bank and say "I know I am supposed to be paying £800 a month but I've run the numbers and all I can afford is £250.  Will you allow this for  6 months?  In 6 months time my other half will be going back to work and we'll have extra income and can resume the £800 a month.  And at that time we will know better what we can do to catch up on the missed money."

Carol1963

Thank you.    I have just done my yearly DMP plan with Stepchange.  Just a bit of information for you.  My husband is off poorly at the moment and have been for the last 4/5 months so obviously his wages have been reduced and is now only bringing home £577.  I have taken absolutely everything off I can possibly take off and am down to the basic things you have to pay e.g. mortgage, gas, leccy, council tax etc., etc., I have absolutely nothing for spares/servicing, entertainment, sundries/emergencies daft things like haircuts, clothes, repairs.  My totals for essential bills is £1779, our joint income is approx. £1,840 with the remainder £61 going to Step.

Absolutely nothing else left.

Carol1963

Oh I hate sounding like a whinger!  x

Hoenir

Then the mortgage should come before your unsecure creditors. 

Carol1963

Sorry but not sure what you mean?  I am paying my mortgage and all other essential bills, £61 to Stepchange - as I have said nothing else left, if something comes up like car needs attention how/where do I get the money from?

redofromstart

Some years back I got to the stage of asking for a payment holiday - and I get how you feel. With us they wanted to know that there was a reasonable prospect of us being able to pay it again in the future, so be careful in what you say, It is a temporary problem and the payment holiday will allow him to time to recover and return to work. I hope you get some luck, a sympathetic and supportive response from your provider and that your DH feels better soon. 

Carol1963

Thank you so much for your concern.

Spendless

25+ years ago I asked my then mortgage provider if they'd accept reduced payments for a while due to our circs at the time. They agreed to half payments for 6 months. At the end of that time they rang me to see what I would be doing to repay. By then I was in a different financial situation so I suggested double payments, they agreed and I paid it back. Never needed it again. I've no idea if it impacted my credit score back then, but it didn't come up that I needed anything where that might have caused an issue.