Payment Break Advice

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buyaka

Registered User
Messages
23
Hi ..

I'm currently coming under financial pressure and was considering taking a payment break on my mortgage ..

I also have a car loan thru Lombard, and I was wondering if its possible to take a payment break with a car loan as well?

Its a 5 year loan, taken out in early 2006 and the payments are 800 per month.

I'll be taking out a new car loan with them in January so I don't know if that makes it more likely they'd allow a payment break or not

Any help much appreciated!
 
Why would you be considering taking out a new car loan in Jan if you are under financial pressure.
 
buyaka said:
Its a 5 year loan, taken out in early 2006 and the payments are 800 per month.
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Be careful to read the small print and do the maths on what exactly Lombard will charge you for either a repayment holiday or for a "rearrangement", even to a lower amount. You don't say what interest rate you're paying, but 12 x 5 x €800 = €48,000 repaid over the life of the loan.

A payment break from your mortgage may appear less punitive as a "quick fix", but in the longer term cost you even more.

Do you have any savings, or can you reduce your overheads in order to keep up the repayments?
 
Unfortunately I've no savings ... and I've been caught on the hop a little with several bills mounting up.

Been onto my bank asking for a mortgage payment break and because I only switched to them 8 months ago I'm not eligible yet.

What they did offer me was what they called an 'omit'

If I send them a letter asking to cancel my payments for December and January they'll add the missed payments onto the following 10 months.

So my monthly payments will go up a couple of hundred for those months.

I can probably manage that once I get out of the hole I'm in.

Good or Bad idea??
 
buyaka said:
If I send them a letter asking to cancel my payments for December and January they'll add the missed payments onto the following 10 months.

So my monthly payments will go up a couple of hundred for those months.

I can probably manage that once I get out of the hole I'm in.

Good or Bad idea??
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That depends on a number of factors. If you are 100% sure that you can manage the increased mortgage repayments over 10 months, then on the face of it this solution would seem to be the least costly way of solving a temporary problem.

However, if you're anything less than sure about it, or if the financial pressure you mentioned is not just a temporary problem, then you may be digging a far bigger hole for yourself. Unlike your car loan, your mortgage is secured against (presumably?) your home.

Would you consider calling in to your local MABS office for more detailed (and confidential) advice?
 
I'm confident I can manage the increased payments alright.

Probably a nice little kick in the This post will be deleted if not edited to remove bad language for me anyway ... force me to look at bad spending habits etc and cut back a bit.

I might downgrade the car and bring the car payments down to compensate for the increased mortgage payments.

Does doing something like this have any impact on my credit rating or show up anywhere in a negative light?
 
Dont upgrade the car in January, thats the best advice you could take, a new car will loose you money straight away, theres nothing wrong with a 3 year old car, keep it for another 3 years, just have it serviced.
 
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