Bank Refused Mortgage Break-Opinions

Ginger83

Hi all,
I recently rang my banks head office (Ulster Bank) to ask if i could have a payment break. I've my mortgage 3.5yrs,never missed a payment and have been overpaying by 300 per month for 18mths now. My intention was to clear up a small overdraft and free up some cash to bring herself away this summer.

I was told to make an appointment with my local branch, did so and brought the usual, payslips, bank statements, p60 etc. The manager point blankly told me 2mins into the conversation I wasn't entitled to a payment break as I wasn't in financial difficulty and was in full time employment. She said the only 2 ways I could have one was if I lost my job or way going abroad for a period of time.

She then proceeded to shove loans down my throat.I insisted the last thing I wanted to do was borrow money to take a holiday after which she abruptly ended the conversation and I more or less felt like a beggar and felt I had to leave.

The broker I got the mortgage through recommended UB explaining I had the option of payment breaks any way or time I wanted them. Who's telling the porkies? Is there anything I can do to find out if I can get one? I feel sorry and angry I chose them now, that I've been paying alot more than I was obliged to and it stands nothing to me, they now look down their noses at me.

Thanks

BuffyBot

The manager point blankly told me 2mins into the conversation I wasn't entitled to a payment break as I wasn't in financial difficulty and was in full time employment. She said the only 2 ways I could have one was if I lost my job or way going abroad for a period of time.

Which, considering the current climate and how difficult some people are finding it to make ends meet and get banks to give a break, is not too surprising. A holiday isn't a nessescity, and wouldn't qualify for any kind of mercy break.

The broker I got the mortgage through recommended UB explaining I had the option of payment breaks any way or time I wanted them. Who's telling the porkies?

Check your mortgage documentation and it should be spelled out there. If it's not, well then the broker may have been feeding you a line.

phormium

Payment breaks are the 'end of the road' answer for mortgage difficulties and are only given by UB when all other options are exhaused e.g. interest only or in exceptional hardship circumstances. Your reason would not get you a payment break. Your broker was probably correct at the time you took out the mortgage as a 2 month payment break was a feature of some products however that was more of an added bonus feature than something written into your loan offer. Times have now changed and due to the vast numbers of people requiring some leeway with their repayments these breaks are no longer given for any old reason. If you have been overpaying your mortgage is there an option to take back that overpayment? This would give you extra money for the holiday. There used to be some option as well to opt for 10 repayments per year if you have been overpaying, this would effectively then be a 2 month break, you could check that. Seems your interview was set up under their 'debt problem' type and you clearly are not in that category so that is why you got short hearing.

unclebill98

Other post pretty much some up the Banks Stance.

Payment breaks where an option but would never have made up part of your T&C of the offer letter.

I would make your feelings know about how the interview was conducted. When you made the appointment you should really have been asked what it was about. If you told them you where looking for a payment break then you should have been told that those options are only avalible for the reasons mentioned above. It would have atleast saved you the hassle of going into them ans wasting more of your time.

MagicMarker

instead of paying an extra 300 per month off your mortgage, put it into a separate savings account? that way in the future you'll have money set aside for things like these.