# Missing Mortgage payment



## monore (11 Jan 2012)

Could anyone advise what the procedure is when a mortgage payment is missed. i.e. DD request refused because of lack of funds. 

Will the bank retry to take payment at later date. Can they do this without authorisation. 

Will the bank wait till following month and take following months payment by DD at that stage. 

Is the missing payment then added to capital amount of mortgage or set aside as separate arrears amount.

Basically wondering whether it is possible to unilaterally change repayment terms by missing occasional monthly repayment (say one a year) Obviously understand that this would not be approved by bank.


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## wbbs (11 Jan 2012)

Most banks represent the direct debit within two weeks or so of original date, if missed the second time then usually they will not debit two months the following month.


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## ClubMan (11 Jan 2012)

monore said:


> Basically wondering whether it is possible to unilaterally change repayment terms by missing occasional monthly repayment (say one a year).


This seems like a bad/risky approach to varying the mortgage terms in my opinion. Is there no other option?


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## monore (12 Jan 2012)

ClubMan said:


> This seems like a bad/risky approach to varying the mortgage terms in my opinion. Is there no other option?



Possibly asking for an interest only period but this would most likely be refused. Another consideration would be that I assume that TRS for the missing payment would be lost.


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## Quest (12 Jan 2012)

Have you tried discussing with your lender?  Why do you think you would be declined an interest only period?  

In the current climate if you only show affordability for Interest Only / Interest part capital repayments, generally the lender will work with you on this. They do not want you in arrears anymore than you want to be. 

Your TRS would not be affected.


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## monore (12 Jan 2012)

Interesting. We seem to have a difference of opinion between Clubman and Quest. This is probably the factor that will decide whether or not I will miss a payment.  If doing so means I will lose out on €200 TRS relief, it may be cheaper although more problematic to borrow the money for the payment elsewhere. Mortgage is with EBS. The monthly payment is taken after they have credited TRS to amount.


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## ClubMan (12 Jan 2012)

_Quest _seems to be talking from experience. I'm just talking from an "academic" standpoint. So in terms of what actually happens - whether or not it should happen - _Quest _seems to have the upper hand.


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