Now I gotta mortgage query!

Tanabe

Morning all,

Can one freeze their mortgage for 12 months without any implications and then just take up from where they left off with the repayments?

Thanks.

Gurgle

Tanabe wrote: »

Morning all,

Can one freeze their mortgage for 12 months without any implications and then just take up from where they left off with the repayments?

Thanks.

As in stop making payments for the year?
Many lenders will make such arrangements, but of course there are costs.
Talk to your lender.

macrubicon

Totally depended on the mortgage type and bank I would guess...

Step 1 would be to call them and ask about payment holidays - I know some do for a month or two, but 12 months probably not unless it's a special arrangement.

Call their info line and ask... you should not have to give any details over to them for that query

Tanabe

Yeah, I'm with IIB homeloans and would prefer not to give them my details in case in looks bad:o Just wanna clear C.U. loan is all:)

macrubicon

Call them as a "potential new customer" and ask the question...

I can't imagine they would require your details for that...

unclebill98

Most payment breaks are for a max of 6 months and can only be gotten once during a mortgage. So be very sure you want it. You would have to apply in writing stating the reason for the payment break. It would need to be approved and they are not always given.

Your other option is go for a an interest only payment. This is normally done for 1-2 years. Again its not always given.

Also, as i found out today the saving would be very little if the mortgage is less than 5 years old. About 100 less per month.

Be careful as to your reason as trying to clear a CU loan would not be a good one.

stepbar

In a short answer - No. As Unclebill said 3 - 6 months is the norm and 1-2 years interest free. However there would want to be a very good reason for same. Clearing a loan from another institution would not suffice. I would suggest an equity release. That being said you might not have any so that rules that one out.

Tanabe

unclebill98 wrote: »

Most payment breaks are for a max of 6 months and can only be gotten once during a mortgage. So be very sure you want it. You would have to apply in writing stating the reason for the payment break. It would need to be approved and they are not always given.

Your other option is go for a an interest only payment. This is normally done for 1-2 years. Again its not always given.

Also, as i found out today the saving would be very little if the mortgage is less than 5 years old. About 100 less per month.

Be careful as to your reason as trying to clear a CU loan would not be a good one.

You're absolutely 100% correct. I phoned them earlier on and the best they'd do is the interest only option which at the end of the day, wouldn't really be saving me alot.

stepbar wrote: »

In a short answer - No. As Unclebill said 3 - 6 months is the norm and 1-2 years interest free. However there would want to be a very good reason for same. Clearing a loan from another institution would not suffice. I would suggest an equity release. That being said you might not have any so that rules that one out.

Have the equity alright but have no intention of releasing. Just gonna keep going as I am for now.

Thanks for all the help lads.

stepbar

I would suggest shoping around TBH. There are better rates to be had. See what you can get. You could save money.

Toots

unclebill98 wrote: »

Most payment breaks are for a max of 6 months and can only be gotten once during a mortgage. So be very sure you want it. You would have to apply in writing stating the reason for the payment break. It would need to be approved and they are not always given.

Your other option is go for a an interest only payment. This is normally done for 1-2 years. Again its not always given.

Also, as i found out today the saving would be very little if the mortgage is less than 5 years old. About 100 less per month.

Be careful as to your reason as trying to clear a CU loan would not be a good one.

+1 , I know the mortgage package I took with my bank allows me to take a three month payment holiday up to four times during the length of my mortgage. You have to have made at least one years payments before they will let you take another break though. The payments won't go back to the way they were as they will be increased to compensate for the interest acrual while you weren't making the payments. Chances of you getting the year off to clear a CU loan are very slim.

My OH's bro and his wife took nine months off their mortgage, but there were exceptional circumstances: she was pregnant and her company don't pay maternity leave as she is on contract, and her husband had just broken his leg so he couldn't work. She had to get a letter from her company stating that her wages would not be paid while she was on maternity leave, and her husband had to get certs from doctors to say that he wouldn't be fit for work, and letters from his company to say that he wasn't entitled to sick pay as he didn't break his leg while at work (he's a builder) and even then it took about two months of wrangling to eventually get the moritorium. When their payments started again, it had gone up by about 200, but they pretty much had no other options but to go that route. They said themselves that things are a lot tighter now that there's another 200 added to their mortgage every month on top of the obvious expenses of having a child.

OH, if paying the CU loan is going to make things tight for you, maybe consider trying another financial institution. You could use the money you borrow from them to clear your CU loan and you could take the new loan out over a slightly longer period, which could make the repayments more managable.

stepbar

That's the mad thing about lending. If said bank employee if happy with the existing borrowings you have there should be no problem.