some mortgages offer this as standard, or will offer if you've previously made overpayments. So worth asking firstly if it's something they offer as standard, or under what circumstances they would consider. Wont show on credit reference checks at all.
It does depend on the lender though. We had a cash flow issue a few months ago that we knew would take a couple of months to resolve. The bastard HSBC wouldn't let us have a payment holiday or go interest only for 2 months, all they would do was let us borrow an additional £5k (which was far more than we needed, we have a great credit rating and have never missed a payment on anything, and can you tell I'm still bitter?!)
Well Nationwide does as a feature of their mortgages. So that's useful but I thought most lenders did if you were ahead and paid a bit more each month. But they should be sympathetic to people. HSBC sound horrible. That's so mean of them Custard.
It's probably an option that you have as part of your mortgage agreement. If it's not, then you can always try and agree a holiday with the mortgage company. They want thier money and giving you a payment holiday helps you to pay them, they will usually agreed.
Any agreed changes will not show up as anything negative on credit searches though some companies in this area do have details of payments made, when etc but it would not be 'flagged' in any way as a negative issue because if it's agreed, it becomes part of your mortgage agreement.
We are also with Nationwide. They have a central number to call, press X for mortgages etc. Just ring (give your account number) and ask .... "if I wanted to do X or Y what are my options?" You dont have to say why you are considering this. Then note down the info & say you will get back to them. That way you get your answer and can decide what's best way forward.
Yes if you have previously overpaid then with NW you can take that/those overpayments back but I doubt that is what you are asking. Even without overpayments over the years with my NW mortgage I have taken two payment holidays of 9-12 months each, changed from repayment to interest only for four years, changed back to repayment AND lengthened the term of the loan (to reduce monthly payments). These options got us though time of work to care for very unwell family member, redundancy and extended mat leave for two babies. I didnt have to say why and there is no record of anything on a credit file as I always made the agreed payments.
I now have an overpayment on my mortgage that would see me through a crisis but didnt then and I remain loyal to NW who had the flex to do all of the above. Good luck. Let us know how you get on.
Thank you all. We're just exploring options at the moment and have a few months before we need to do anything - so hopefully DH will have found gainful employment by then. If not it would be useful to know how we can reduce our hideous mortgage outgoings, but obviously don't want to be penalised long term!