Maternity and Mortgages repayment HELP !

amadis

I will be going in Maternity leave in Octobre. I currently have a mortgage with HSBC. I went to ask if i could take a "holiday " from the monthly repayment from at least the period i will be going in to statutory pay ( only 100 pounds a week )...

I was told that they don't have this option and the only thing i could do is to change Mortgage status to Intrest Repayment in order to pay less per month.

This does not help at all as i wont have the amount to pay at least till i willreturn to work.

Any ideas on what can be done to freeze the repayment ?

At the moment i am on fix rate till Jan 06 paying 543.00 pm...

Thanks

Amadis :

brummybloke

you dont have much time to make the change to be honest. i would maybe look at changing your mortgage, you only are tied down for 5 months more, it may be better to pay the penalty get out clause and move now ( cheaper and suit your needs in the short term). i will have a quick look at mortgages that offer holidays and repost with some info. but as i say you may have to be very quick.

KTF

Dont you have to be with them for a set amount of time before you can apply for a payment holiday?

You have to be with the Nationwide for 3 years before you can apply for one for example. Other lenders may have different criteria though.

brummybloke

this is info from government website concerning good bad points of flexible mortgage

http://www.fsa.gov.uk/consumer/07_MORTGAGES/compare/mortgage_features.html

it does point out that most require you to have OVER PAID on some repayments first, i guess to show that you are capable of making the payments that you may end up having to pay to 'catch up' with your mortgage.



http://www.alliance-leicester.co.uk/mortgages/index.asp?page=legal-info&buyertype=remg&ct=5yeardiscount

k, not an expert but cant see that the condition on some others of having to have had a mortgage with them for x years is on this one. maybe give them a ring?


the hsbc website is not very informative although it does mention a flexible mortgage, have you spoke to them about changing your deal, i know you are 'fixed' to them but for 5 months, most will snap you back up and their deals and just add the penalty fee to your loan or waive it.

TheManWithNoName_3

If you have enough equity could you not just borrow more to see you thro' this time, similiar to payment holiday but interest charged on full amount, rather than when missed, but can offset alittle by getting deposit interst.

also avoids risk of a payment holiday showing up as arrears on your credit file