mortgage moratorium

[Clairio]

Hi, I'm considering leaving my full-time permenant job (I know, I should be glad to have one) so set up as self-employed (have asked about part-time, doesn't look like its going to happen). While I will have a very small start-up cost, myself and bf were going to apply for a 3 month mortgage break just as a cushion incase business slower than expected at start.
Obviously through the research I've done I think it will be reasonable income but you never know..
my q. is when applying for the mortgage moratorium, is it a good idea to explain in my letter that I'm starting my own business (bf in ft permenant job and earns the bigger wage) and thus just want a mortgage break to protect against any unforseen drop in income or do they really care about the individual details? I would like to stress to them that we aren't having any difficulties paying at mo (perhaps unlike some other people who may be applying for them).
Also, are the banks becoming slower to give these moratoriums seeing as they're cash low at the mo?
Many thanks to anyone who has any advice, C

 

[NorfBank]

What bank are you with?

BOI are one of the most flexible when it comes to payment breaks. They usually allow them without questioning the reasons behind it.
My advice, just ask for it, hopefully you'll get an administrator who simply agrees to do it. If you are probed further then you have a genuine reason for looking for a moratorium and the bank should be happy to offer one. They prefer you to let them know now than in the future when you might be struggling with one wage. If your partners wage is strong enough to cover the whole mortgage then even better.

I would ring the bank first before I put anything in writing by the way.

 

[Clairio]

Hi, thanks for your reply. I'm with BOI. Have rang them 3 times.. first girl said yes no problem at all, just ring this number.
The guy on that no. said we have to have paid off 10% of mortgage and we've only paid 4% (2yrs paying) so we'd have to get it re-valued.
Fine, got it re-valued, its gone up a good bit so we're in the clear there (about 18% paid off). Rang them back to see where to send the valuation - got a guy who said I have to write letter to credit office - they may/may not approve it, he was very negative and was like 'if you're having trouble meeting repayments' to which I said I'm not I would just like a break.. he said write the letter, (which i'm doing in next couple of days), but he didnt give me any help/ advice on what you should put in this letter. I'm assuming they dont want a long winded explanation of my career plans, just that my bf's wage is able to cover the mortgage??
Another option I'm after seeing here on the board is to ask for interest only for the period, maybe this would worth asking about too.

 

[NorfBank]

If you can afford interest only then go down that road, better to be paying off something rather than letting all the interest accumulate.
Good luck with it. You're probably looking at speaking to those three people again!

 

[sadie]

I think mortatoriums are like being given a wish, you only get one in the lifetime of the mortgage so use it wisely. Are you sure you need it? Three months will go by very quickly. Do you have a business case document to show the bank that you will be generating revenue that will be coming into your Bank account after 3 months? My advice is do the research first then go to the Bank.

 

[agent x]

I too was enquiring about a mortgage moratorium from ICS / BOI and spoke to two different people on the phone - one was very positive and the other was quite the opposite. The reason I gave was that I wanted to make improvements to the property as I needed to let a room. Agent No. 2 told me that this was not a valid reason - I would need to be on maternity leave or something...... He sent out an application form anyway but since applying for my mortgage my income /commission has dropped ( hence the room to let) and now I don't know whether I should just keep quiet and carry on or should I divulge my new financial status ?? The good news is that one can apply for a moratorium four times during the life of the mortgage providing there is 12 months between them.