Switching vs Covid & Payment Break

M

mike2017

Registered User
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Just got notified when about to switch that the bank want me to sign a new declaration warning me that if after switching I request a payment break it will be dealt with as an arrears issue and affect my credit score. So, if I switch and suddenly lose my job I'm now screwed?! They want my latest two months bank statements and to declare my circumstances haven't changed since my approval. Not exactly great but as moving banks is treated as a new mortgage, anyone taking out a new mortgage is presumably in the same boat? Any comments from anyone on this? Not much I can do but keep my fingers crossed if I move or stay where I am, fix for another year and try again later.
 
If you suddenly lose your job you'd be in trouble whether or not you switched, surely?

I know the banks are supposed to be giving out payments breaks more easily because of the current situation but I'd imagine they will likely affect your credit rating if you went to move in the next couple of years anyway.
 
There's trouble and there's trouble. I'd much rather have a payment break while I looked for a new job and it not affect my credit rating (that's what I believed to be the current practice?) than go to an arrears team, my credit rating is shot and they sell my mortgage to a vulture fund at the first opportunity!
 
I'm not sure about the new declaration, but UB only consider mortgages drawn down before 16th March for these payment breaks (i.e. drawn before the measures were put in place).
 
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