Mortgage advice- interest only

[Mumof2]

Hi! I am looking some advice! My husband has been ill with Mental health issues for the last year and is currently in hospital! I work full time and have 2 lgs! My husband stepped down from a management role in January and has been on SSP since June but I have been able to pay the mortgage using my wage! My problem is I am about to be hit with a bill for a new boiler! Has anybody any experience with Santander agreeing to let you go Interest only for a couple of months? I am hopeful my husband will be back to work by then and if not I would put the house up for sale! TIA

[Pixie]

Re: Mortgage advice- interest only

I'm sorry I can't help but someone else will be along soon. I hope your husband's health improves soon x

[nanna58]

Re: Mortgage advice- interest only

So sorry for your problems hope your hubby will be well soon, I can't help but someone will be here soon xxx

[marypoppins]

Re: Mortgage advice- interest only

Hi, I'd give them a call first and see what they say and let us know.

[PlanB]

Re: Mortgage advice- interest only

My husband has been ill with Mental health issues for the last year and is currently in hospital! I work full time and have 2 lgs! My husband stepped down from a management role in January and has been on SSP since June but I have been able to pay the mortgage using my wage! . . . Has anybody any experience with Santander agreeing to let you go Interest only for a couple of months?

I'm sorry to hear your other half is poorly. You've got enough to worry about without having money woes to deal with too.

Fortunately Santander have a good reputation for dealing with mortgage problems. They also have a Specialist Team who deal with vulnerable borrowers such as those with mental health issues. They assign a Case Handler to each person they help so you will always get the same one and not a series of insensitive customer services people.

The first point of contact will be Santander's Collections & Recoveries Team on 0800 023 4603 (direct line) who will refer you to the Specialist Team after taking some basic details.

Even though you're not in arrears at the moment that department has the mandate (power) to offer a range of solutions. Their attitude is to "look at what we can do, not what we can't do".

The options possibly available to you would be from reduced monthly payments based on affordability, to zero payments. You can set this up over the phone if you are able and willing to give them a breakdown of your Income and Expenditure. You can do this in writing if you prefer.

Whatever is agreed will have an impact on your credit file which will show as an ATP (Arrangement to Pay) for the months it is place. If you're on reduced payments (not '0' payments) then these will show as an ATP and not as 'arrears'. '0' payments will show as arrears from the second month (the first month shows as a Late Payment).

I'm assuming this is a joint mortgage in which case both credit files will show the ATP I'm afraid since the loan is on a joint and several basis.

Unfortunately they won't switch your mortgage to Interest Only (to avoid the CRA file blip) because they don't lend on an interest-only basis so you would in effect be asking them for a new mortgage product.

The Collections Team won't ask for any medical evidence, but the Specialist Team might because they have the freedom to offer greater concessions such as an 18 month arrangement.

Check with your local council to see if you would be entitled to a Council Tax reduction when on SSA. I believe you can claim that.

I wish your husband a speedy recovery. Sorting out your finances before you get into arrears and the lender threatens legal nasties will hopefully take the weight off his shoulders.

Plan B x

[marypoppins]

Re: Mortgage advice- interest only

PlanB to the rescue!

Good luck Mumof2, keep us posted

[Mumof2]

Re: Mortgage advice- interest only

Thank you all for your kind words and thank you Planb for your detailed response! I hadn't realised people had replied as I was checking my emails! I was surprised and pleased when I seen all the replies! I really don't know whether to approach the bank or not! I don't really want to affect my credit rating! Will this affect future lending etc! If I paid Interest only for only a couple of months and it put ATP on my file does this mean my credit rating would drop drastically? TIA

[Never-In-Doubt]

Re: Mortgage advice- interest only

Regards the CRA data - A couple of late markers on your credit file won't create too much damage long term as you have reasonable reason for being late with payment and evidence (if you needed to switch mortgage in next 1-3 years.

[PlanB]

Re: Mortgage advice- interest only

I really don't know whether to approach the bank or not! I don't really want to affect my credit rating! Will this affect future lending etc! If I paid Interest only for only a couple of months and it put ATP on my file does this mean my credit rating would drop drastically?

I'm afraid Santander don't offer an interest-only option.

However you say this problem has been caused by the need to replace a boiler which can be very expensive. If you have got a good credit rating at the moment have you considered whether buying the boiler on some form of instalment scheme or with a personal loan?

I never advise people to take out credit because I overdid it and have suffered the consequences, but if your mission is to preserve your mortgage payment record and keep warm at the same time then research the different ways of paying for the boiler.

Another thought might be to approach your lender for a small further advance for 'Home Improvements' to cover the cost of the boiler. This could be added to your mortgage and you'll pay interest on it. But beware this would in effect be a secured loan so there is a risk involved if the interest rate goes up.

I think you need to do some proper research into funding the boiler including any of the grants or subsidised eco-friendly schemes available.

Plan B x

[Mumof2]

Re: Mortgage advice- interest only

Thanks Plan b! Unfortunately we bought our house at the height of the boom in Northern Ireland and we are sitting at 100%LTV ( we did start at 65%LTV in 2007) so wouldn't be able to apply for a home improvement loan! I also wouldn't be able at the minute to take on any further monthly payments! My parents have offered to pay for the boiler and I will pay them back but to be honest I am just finding it really hard to make ends meet! I just think if I could even reduce my payments by £200 a month it would make life so much easier until hopefully he was back in employment! I have used all our savings to pay for other unexpected bills, car problems, new freezer etc! I just don't really know what to do!

[PlanB]

Re: Mortgage advice- interest only

I am just finding it really hard to make ends meet! I just think if I could even reduce my payments by £200 a month it would make life so much easier until hopefully he was back in employment! I have used all our savings to pay for other unexpected bills, car problems, new freezer etc! I just don't really know what to do!

Glad you've got the boiler sorted.

You now need to weigh up the pros and cons of asking your mortgage lender for a reduced payment agreement. Make a list of reasons for and reasons against and see which one provides the obvious best choice for you.

I can see you're worried about your credit file but this may be a case of 'you can't have your cake and eat it'. Which is worse ATP markers on your CRA file or the comfort of having a reduced payment scheme set up with your lender? Only you can answer that.

You say you're finding it hard to make ends meet at the moment and want to make things easier until your husband goes back to work. But with no certainty of how long that will be you will continue to find it difficult to budget accordingly because of the 'unknown'.

All I can add is don't leave it until you get into arrears with your mortgage.

Plan B x

[Mumof2]

Re: Mortgage advice- interest only

Glad you've got the boiler sorted.

You now need to weigh up the pros and cons of asking your mortgage lender for a reduced payment agreement. Make a list of reasons for and reasons against and see which one provides the obvious best choice for you.

I can see you're worried about your credit file but this may be a case of 'you can't have your cake and eat it'. Which is worse ATP markers on your CRA file or the comfort of having a reduced payment scheme set up with your lender? Only you can answer that.

You say you're finding it hard to make ends meet at the moment and want to make things easier until your husband goes back to work. But with no certainty of how long that will be you will continue to find it difficult to budget accordingly because of the 'unknown'.

All I can add is don't leave it until you get into arrears with your mortgage.

Plan B x

Thanks Plan B! Thanks for all your advice! I will definitely sit down and try to work it all out! Definitely don't want to end up in arrears!
Mum of 2 xx