Redundancy interest only?

donaldtramp

Hi folks,
Looking for advice.
Ive just been paid off today effecrive immediately and i am wondering if i should ask my lender (Halifax) to move my payments to interest only.
I believe i can do this for 6 months?
Is this correct and are there any implications for my credit history?

I have savings to cover me for a while but would obviously like to lower my outgoings for a while.

Is tbis sensible?
Any other tboughts?

Thanks for reading!

tacpot12

How long do you think it will take you to find a new job? 

Will you claim Jobseekers Allowance while you are looking? Doing so would make your savings last longer. 

donaldtramp

I dont know. I had an inkling it was comingso i have already had one interview with another one lined up. I will apply for job seekers next week.
I think that will help lowere my council tax?

MattMattMattUK

How many months can you keep going if you cut expenditure to an absolute minimum, using redundancy and savings? 

donaldtramp

Doing those calcs just now but hopefully 4 months or so, still checking

Hoenir

I wouldn't worry about any impact on your credit file. The important thing is not to default or incur unneccessary charges. Lenders aren't going to judge you if you make the request. People encounter short term financial difficulties all the time. 

housebuyer143

donaldtramp said:

I dont know. I had an inkling it was comingso i have already had one interview with another one lined up. I will apply for job seekers next week.
I think that will help lowere my council tax?

Job seekers will not lower your council tax as it's not a means tested benefit. 

donaldtramp

Hi folks, a bit of an update. I've applied for interest only. 
It's an online form and you can apply for 6 months. The guy at Halifax said you can ask to cancel and revert back at any time. I can also choose to make a payment to make up the extra sums whenever I want.
Its part of the mortgage charter that all the lenders signed post Covid. Credit rating isn't affected.
Just think it's sensible to give myself as much leeway as possible.

I've done my calcs and I should be good for a while.
Already have a few interviews so fingers crossed......

Hoenir

donaldtramp said:

Credit rating isn't affected.

Doesn't mean that other financial institutions won't be aware though. The information is in the public domain. 

housebuyer143

Hoenir said:

donaldtramp said:

Credit rating isn't affected.

Doesn't mean that other financial institutions won't be aware though. The information is in the public domain. 

Yes, I was thinking this. Some lenders will specifically ask if you have been on interest only and will discount your application if you have. 
It might not affect your credit but may hinder them in the future. Not as much as arrears would though.