mortgage holiday denied!

2makeit

I tried to get a payment break from my morgage but apparrently it was turned down because i am unemployed and they need to be assured that future payments will be made after this.

Since payments are difficult to make due to not enough money coming in i asked about what options i had with them.

They said i could make a reduced payment which could be for 4 months and then after that back to normal + with a bit more to compensate for the difference.
They said it will affect my credit rating, would it be better to do this or try and make normal payments.
I tried to get this break so i could find a job and save up for future payments.

Noz

You need to ask your lender that

bryanb

"I tried to get this break so i could find a job"

Don't really understand why you need a mortgage break to find a job

2makeit

i am currently unemployed so thought i could have a break now, otherwise payments will be difficult to make due to my circumstances.

homer_j_3

Yes but there should be more incentive to get a job if you have a payment to make.

You have to realise that the lender offering you reduced payments is more than what a lot would do.

Voyager2002

Sorry to hear about your difficulties. I hope that you are claiming all the state benefits to which you are entitled: tax credits if you have a family; council tax benefit unless you have large savings; and JSA of course. If you are still claiming after 39 weeks you can also receive help with your mortgage interest.

In the meantime: do you have the money to make your mortgage payments? If so, then if you took the reduced payments what would you do with the money? Maybe it would be sensible to use it to pay for electricity, but not many things are as important as your mortgage. And if you don't have the money and don't make the reduced payments they are allowing, what would you cut out in order to make full mortgage payments?

TBH, while making reduced mortgage payments is not going to do anything for your credit record, defaulting on something else, or at worst having your electricity cut off, would be a good deal worse.

homer_j_3

Demonstrating that you cant pay your mortgage payments will be very serious too. In todays climate, a missed payment on anything will be costly.

However these things do happen and the mortgage should be the priority. The utilities companies will often put you on a payment plan to help.

UK007BullDog

If your mortgage is a repayment type mortgage then you could change it to an interest only mortgage for a small fee. Once you are back on your feet you change it back to repayment and do some overpayments as well to catch up on the lost months.

calleyw

I would say at the moment the two most important payments for you to make are the mortgage as otherwise you could be homeless.

And the second is council tax as that is crown debt and you can go to prison for non payment. I know if you pay over 10 months you get two months off so you might be getting two months off and a little of a breather.

Good luck in getting another job. Have you signed up with the agencies around that you can. Until you find another job you may have to just above min wage really horrible jobs. But at least they help pay the bills.

All the best.


Yours


Calley