Fixed rate mortgage - moratorium possible?

rosemalin

Hi,
I'll try ringing my bank on Monday but just wondering if anyone knows the answer.
I've a fixed (5year) mortgage with Ulster Bank (into year 3 of it at present) and I was considering asking for a 2-3 month holiday from it (have just had babs and hubbie had no work). Would take the pressure off til I'm back to work.

Do you think it's likely?
Thanks

phormium

Doesn't matter that it is fixed, you will have to go through their process of completing budget planner etc but if the figures show you need a reduction then they would probably offer something like interest only for a few months first, might not be worth it to you if it is only temporary until you get back to work. You could press for mortgage break based on the fact that you will be returning to full payments shortly.

Seniorpeazel

rosemalin wrote: »

Hi,
I'll try ringing my bank on Monday but just wondering if anyone knows the answer.
I've a fixed (5year) mortgage with Ulster Bank (into year 3 of it at present) and I was considering asking for a 2-3 month holiday from it (have just had babs and hubbie had no work). Would take the pressure off til I'm back to work.

Do you think it's likely?
Thanks

Check your loan offer. Some mortgages had it in them that you were entitled to 6 months moratorium given that the account is maintained and there are no arrears. If it's not in your offer, visit your local branch. They will complete a financial statement with you and submit your request for an underwriting decision.

unclebill98

Make an appointment with your local branch. There is a process to follow. Explain your situation and they will advise what to bring in. It will take a few weeks.

In short you will not get 3 months off. You may get a reduced payment in line with what you can afford for a min period of three-six months to the max a year beefore being reviewed or told no.

Seniorpeazel

unclebill98 wrote: »

In short you will not get 3 months off.

There's no guarantee that you WILL get 3 months off but don't rule it out. Depending on your cirunstances it may be an option.

peteb2

There's no option for a moratorium on their fixed rate product. I know from before I had to apply on the variable rate before I went fixed. Because they just wouldn't do it. Now doing it because you are in strife may be a different story. But defo not a feature of the product.

Seniorpeazel

peteb2 wrote: »

There's no option for a moratorium on their fixed rate product. I know from before I had to apply on the variable rate before I went fixed. Because they just wouldn't do it. Now doing it because you are in strife may be a different story. But defo not a feature of the product.

The moratorium is a specific condition relating to the loan offer and not the rate specifically. Just because the mortgage is on a fixed rate does not mean that this option is not available.
Like I mentioned above, check the original offer, if it's one of the conditions a simple letter accompanied by a copy of your offer will do.

lucybousy

rosemalin. i got payment break for 6 months as was special condition relating to our loan. im taking it as soon as i get letter that im going on to a tracker please god. but i could have got it during my fixed rate term. if you dont have copy of terms and conditions get copy of your solicitor we got our mortgage in 2005 and that was on of the special conditions.

peteb2

Seniorpeazel wrote: »

The moratorium is a specific condition relating to the loan offer and not the rate specifically. Just because the mortgage is on a fixed rate does not mean that this option is not available.
Like I mentioned above, check the original offer, if it's one of the conditions a simple letter accompanied by a copy of your offer will do.

I didn't say it was linked to the rate. I said it was linked to the product. Fixed rate mortgae and variable rate mortgage with Ulster Bank are two different products. I took my mortgage out with them in 2005 and I availed of a payment holiday twice. Once whilst on a tracker product and and another before I went onto a fixed product. The payment holiday was an advertised feature of the product.

prodigy1

Hi everyone,

I am looking for a 6month break at the moment as I am struggling big time!! does any1 know if you get put on the Irish Credit Bereau if you take 1 out???

All info welcome
Thanks

rosemalin

Thanks everyone for your answers. I'll look into the terms of my mortgage and have also asked bank to send out the paperwork to see what's involved. Cheers

unclebill98

No you don't.

no money mo pro

TD Luke Flanagan took a break when he was running for Mayor by telling KBC he wouldn't be paying them for three months