# Missing mortgage payments to pay off CC debt?



## scarednow (1 Feb 2010)

Hi, 
New poster here, but regular reader!
Upon speaking to my mortgage provider, they made it clear that they dont really chase mortgage payments until "5 or 6" have been missed. My question is 5 or 6 mortgage payments for us, is approx 5k. Would the bank come back looking for the missed payments after the 5 or 6 missed, or would they simply add it to the end of the loan? The reason I ask is that 5k would clear my credit card debts and then I could cut up my card and use the credit card money to repay the 'missed payments' at a much lower interest rate? Just a question.... Thanks in advance


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## scarednow (1 Feb 2010)

To make it clear, the 150 per month used for credit card payments could be used for mortgage arrears?


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## Padraigb (1 Feb 2010)

Why not put the idea to your mortgage provider as a proposal? You might achieve the same effect without messing up your record with them, and eroding goodwill that you might need in the future.


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## demoivre (1 Feb 2010)

scarednow said:


> Hi,
> New poster here, but regular reader!
> Upon speaking to my mortgage provider, they made it clear that they dont really chase mortgage payments until "5 or 6" have been missed. My question is 5 or 6 mortgage payments for us, is approx 5k. Would the bank come back looking for the missed payments after the 5 or 6 missed, or would they simply add it to the end of the loan? The reason I ask is that 5k would clear my credit card debts and then I could cut up my card and use the credit card money to repay the 'missed payments' at a much lower interest rate? Just a question.... Thanks in advance



Bad strategy imo as your ICB record will show the missed mortgage payments which will adversely affect your credit rating.


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## Towger (1 Feb 2010)

demoivre said:


> Bad strategy imo as your ICB record will show the missed mortgage payments which will adversely affect your credit rating.



Yes. Especially as the mortgage company (if asked) may have no problems giving 6 months interest free.


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## thespecialon (2 Feb 2010)

Why dont you ask for a moratiourum,a lot of banks give these of up to 6 months


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## scarednow (3 Feb 2010)

Spoke to my bank, who stated that they don't offer payment breaks (moratorium). They have said that they would consider interest only repayments for an agreed period of time. I have a few questions :
1) would this affect my credit rating?
2) Current mortgage is 840 per month over 27 years - any idea how much the repayments would reduce to if I opt for the interest free option?
3) They are willing to discuss extending my mortgage repayment . i'm a 35 year old male with 27 years left so highly unlikely they will offer more than 30 years - which isnt really worth the short term financial gain to pay back over longer. Plus im on a tracker so dont want to start renegotiating the terms

Thx


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## scarednow (3 Feb 2010)

2) sorry the interest ONLY option


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## so-crates (6 Feb 2010)

1) A period of agreed interest only repayments would not affect your credit rating adversely (unilaterally deciding to stop paying for any period of time will!)
2) The percentage of your repayments that are interest is greatest near the start of your mortgage and reduces as you go along. If you check your original letter of offer there should be attached an example of a breakdown of mortgage and interest payments, this should give you an idea of what the reduction would be. Alternatively, just ask them.
3) What is the question here? You haven't asked any.


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