Missing 1 or 2 mortgage payments

[elvis]

Things are a bit tight at the moment and i was wondering what the long term repurcussions are of a missed mortgage payment.

 

I expect they will write to us and ask why etc, but other than the usual £25 charge or whatever , will we be forced to make up the balance pretty smartish ?

We have never missed a payment before but as we are a bit skint at the wrong time of the year i was considering all options.

We have a decent amount of equity ( approx 120-130k ) , will this help at all ?

[CaptainK]

Call them up and speak to them.

 

If one of the home owners has been made redundant, they will sometimes allow a payment holiday for a maximum of 6 months or possibly reduced payments while the unpaid amounts are deferred or added to the total balance on the mortgage.

 

Worst thing you can do is "just not pay" for a month or two. It messes with your credit rating and when you want to go for a better deal once the market picks up, you'll be royally screwed because of those missed payments.

 

You could always call them and give them a sob story about unexpected expenses like the car needing major repairs and that's it's essential for your work etc.

[elvis]

Call them up and speak to them.

 

If one of the home owners has been made redundant, they will sometimes allow a payment holiday for a maximum of 6 months or possibly reduced payments while the unpaid amounts are deferred or added to the total balance on the mortgage.

 

Worst thing you can do is "just not pay" for a month or two. It messes with your credit rating and when you want to go for a better deal once the market picks up, you'll be royally screwed because of those missed payments.

 

You could always call them and give them a sob story about unexpected expenses like the car needing major repairs and that's it's essential for your work etc.

 

Thanks , we are on a fairly good deal at the moment but i am self-emplyed and my work has virtually dried up.

We have made all our payments but have never overpayed so would they still consider a payment holiday ?

[hamstrung]

Agree with Captain K. Ask for a payment holiday. Think they are usually up to 6 months. It shouldn't matter if you haven't made additional payments - probably relates more to whether you have been a reliable payer.

[Liverpool lad]

I know nothing of what to do so I going to echo the comments of the above posters

[elvis]

I know nothing of what to do so I going to echo the comments of the above posters

 

Erm , ok thanks for the support i suppose !

[Xherdan]

That history of missed payments will remain on your credit rating for 5 years mate, so its really not an option for a short term fix.

 

Speak with them and let them know the situation, as others have said, a payment holiday could well suit, even if it is for 3 months only.

[elvis]

Agree with Captain K. Ask for a payment holiday. Think they are usually up to 6 months. It shouldn't matter if you haven't made additional payments - probably relates more to whether you have been a reliable payer.

 

Sounds good , as i said we've never missed a payment .

The problem is we are dealing with the Isle of Man bank , who - due to my being self - employed made us jump through hoops to get the loan in the first place even though we had a 25% deposit.

Still, i shall give it a go .

[melons]

Things are a bit tight at the moment and i was wondering what the long term repurcussions are of a missed mortgage payment.

 

I expect they will write to us and ask why etc, but other than the usual £25 charge or whatever , will we be forced to make up the balance pretty smartish ?

We have never missed a payment before but as we are a bit skint at the wrong time of the year i was considering all options.

We have a decent amount of equity ( approx 120-130k ) , will this help at all ?

 

TSO is looking for an escort, don't know what she's planning on paying and for what service mind, just thought it may help.

 

http://www.liverpoolway.co.uk/forum/gf-general-forum/40295-who-ya-25.html#post1983408

 

best of luck and all that.

[briefs]

Elvis, for my sins a lot of my main day to day court work is mortgage repossessions (I know you're all booing in the background) and while I wouldn't take everything I say as gospel, as procedures can differ from bank to bank and I'm not giving out perfect legal advice, I do have some experience in this area (probably too much!).

 

You only have to be two months in arrears for the bank to issue proceedings against you for possession of the property. That is the most important thing to bear in mind if things become a problem. The best thing to do is to contact them and be up front about things. Make sure you give them a full breakdown of your position and often they'll go through income/expenditure on the phone. The government have just introduced a new protocol that all banks etc have to follow before they take the matter any further, so as long as you keep them informed and keep a record of any letters you send to them, you should be fine. I would make sure everything is in writing and if you have a phonecall, back it up with a letter.

 

They will add on charges though, which they are allowed to do, but provided it never gets worse than one month then there shouldn't be any problems beyond you being a bit behind. They can't take you to court and take possession of your house for month in arrears and they shouldn't be able to get a judgment against you for that amount. They will hassle the hell out of you though, unless you are clear as to why you're having problems. It will also show up on your record as a 'missed payment' but if it ever did go any further, your payment history can be really important and by the sound of it you've been fine in the past.

 

You can always ask for a payment holiday for maybe 3-6 months (sometimes offered but at the moment the banks seem reluctant to give much leeway and I don't believe offers of 'holidays' are included in the protocol) or ask if you could miss one month and then pay it back over the next 3 months for instance, once things are better. Best thing is to get in there first and don't just not pay without an explanation.

 

Best of luck with stuff.

[chris71]

If your not on a fixed rate what about asking to pay interest only for a year?

That way you keep your credit rating and the bank still makes there money.

 

What ever you do make sure you speak to your bank and tell them your predicament.

[elvis]

Elvis, for my sins a lot of my main day to day court work is mortgage repossessions (I know you're all booing in the background) and while I wouldn't take everything I say as gospel, as procedures can differ from bank to bank and I'm not giving out perfect legal advice, I do have some experience in this area (probably too much!).

 

You only have to be two months in arrears for the bank to issue proceedings against you for possession of the property. That is the most important thing to bear in mind if things become a problem. The best thing to do is to contact them and be up front about things. Make sure you give them a full breakdown of your position and often they'll go through income/expenditure on the phone. The government have just introduced a new protocol that all banks etc have to follow before they take the matter any further, so as long as you keep them informed and keep a record of any letters you send to them, you should be fine. I would make sure everything is in writing and if you have a phonecall, back it up with a letter.

 

They will add on charges though, which they are allowed to do, but provided it never gets worse than one month then there shouldn't be any problems beyond you being a bit behind. They can't take you to court and take possession of your house for month in arrears and they shouldn't be able to get a judgment against you for that amount. They will hassle the hell out of you though, unless you are clear as to why you're having problems. It will also show up on your record as a 'missed payment' but if it ever did go any further, your payment history can be really important and by the sound of it you've been fine in the past.

 

You can always ask for a payment holiday for maybe 3-6 months (sometimes offered but at the moment the banks seem reluctant to give much leeway and I don't believe offers of 'holidays' are included in the protocol) or ask if you could miss one month and then pay it back over the next 3 months for instance, once things are better. Best thing is to get in there first and don't just not pay without an explanation.

 

Best of luck with stuff.

 

Cheers Briefs , interesting to get a legal slant on things as i dont believe my bank will be particularly flexible when i call them.

As far as the credit rating thing goes , at the moment we have couple of silly black marks on our record which although petty , have messed us up for the moment so although i would much prefer to keep the mortgage account in perfect order it wouldnt be the end of the world if we had a black mark or 2 on our credit rating . Not great but possibly a last resort.

[elvis]

If your not on a fixed rate what about asking to pay interest only for a year?

That way you keep your credit rating and the bank still makes there money.

 

What ever you do make sure you speak to your bank and tell them your predicament.

Yes i thought about that , but we are on a good deal at the moment a tracker with i think .5% above base rate , so we are almost on repayment only anyway due to the interest rate cuts . Still despite the low interest rates we are paying approx. £550 a month anyway.

[The Chef]

Most banks allow 'rest' months on mortages where as you can skip a payment or two but you gotta contact them.Be straight with them, the last thing banks want back is a house but make that call...........

[Ezekiel 25:17]

I thought with most payment holiday options you had to opt for it at the start and pay slightly more for the privilege, I may be wrong though.

[thechap]

You ABSOLUTELY MUST speak to you bank as soon as you think you're going to miss a payment. As someone else has said a bank will very quickly instigate proceedings to possess your property. Making early contact will prevent this. From my limited knowledge, as long as you are making genuine efforts to continue paying and can be seen to be doing so you should be safe for some time.

 

The CAB are very helpful with this sort of thing and may be able to get your interest suspended while you're underpaying. If the interest isn't suspended your debt will get bigger every month instead of getting smaller or evern staying the same.

 

Good luck mate, you must be feeling the stress of it.

[Bubble]

It would completely depend on the bank as to whether a payment holiday would be possible. Most of the big banks would allow it as the government recently put a bit of pressure on them to show more flexibility for financial difficulty. Some won't allow payment holidays if you're struggling to pay, and some don't do them at all. The Isle of Man bank I have no idea about.

 

If you can't get a payment holiday, your credit file is going to end up being affected even if you make an arrangement with the bank. Like others have said, though, it is important to keep in contact with them. They should agree to reduce or suspend payments. You can get charged if you don't keep any agreement you make, so it's best to underestimate the amount you'll be able to pay - you'll still have the option to pay more than the agreed amount if you can afford to anyway.

[L19red]

If you are really elvis then just knock out another one of them greatest hits CD's and use the royalties to pay off the debt.

 

 

alternatively if they wont go for the repayment holiday then ask if you can make interest only payments for a couple of months. depending on your balance and the remaining term that could save you a decent wedge each month.

[Fowlers God]

Hey,

 

I used to work for Connells in their Asset Managment company. They had a division that out of only 3 companies doing reppssesions,

 

I worked on the Northen Rock Team (as you can tell it was very busy 2 years ago)

 

A mortgaeg is an agreement between the customer, (you) and them, If you break that agreement they are in their right to repposses your property. This proceedings can start after 1 letter to you informing you of this.

 

In most cases of the banks that we spoke to the mortgage payers had only missed a couple of payment and were too ashamed to call the bank so lost the house.

 

Honestly mate give them a call. They earn far more interest from you on your repayments than to repposses it as its very hard to sell at the moment.

 

also go to the CAB, they will be able to give you more advice.

[elvis]

Hey,

 

I used to work for Connells in their Asset Managment company. They had a division that out of only 3 companies doing reppssesions,

 

I worked on the Northen Rock Team (as you can tell it was very busy 2 years ago)

 

A mortgaeg is an agreement between the customer, (you) and them, If you break that agreement they are in their right to repposses your property. This proceedings can start after 1 letter to you informing you of this.

 

In most cases of the banks that we spoke to the mortgage payers had only missed a couple of payment and were too ashamed to call the bank so lost the house.

 

Honestly mate give them a call. They earn far more interest from you on your repayments than to repposses it as its very hard to sell at the moment.

 

also go to the CAB, they will be able to give you more advice.

 

Thanks for the reply, i have a meeting with them this afternoon to go through our income/expenditure etc, then they will put our case to their lending team to assess the situation .

They are very much a belt/braces kind of bank so i dont hold out too much hope , nevertheless i shall try .

[Fowlers God]

Thanks for the reply, i have a meeting with them this afternoon to go through our income/expenditure etc, then they will put our case to their lending team to assess the situation .

They are very much a belt/braces kind of bank so i dont hold out too much hope , nevertheless i shall try .

 

I hope all goes ok, They need to remember that we are the ones that have bailed them out so we should get some backing!

[Thants]

1. Lots of good advise. Just don't hide and hope it goes away (which it sounds like you arent).

2. Never thought Elvis would come to this.

[Unrighteous]

TSO is looking for an escort, don't know what she's planning on paying and for what service mind, just thought it may help.

 

http://www.liverpoolway.co.uk/forum/gf-general-forum/40295-who-ya-25.html#post1983408

 

best of luck and all that.

 

Watch out. I heard that TSO's real life has been turned into a film...

 

 

[elvis]

1. Lots of good advise. Just don't hide and hope it goes away (which it sounds like you arent).

2. Never thought Elvis would come to this.

 

Hey Thants those burgers dont come cheap!

[Soleilrouge]

be careful - if you on a good interest rate a missed payemnt can be an excuse to hike it up