Reduced Income - reduced mortgage payment agreement

[intend]

Hi All

I realise that this is not the best time to post this but seeking advice for daughter.

 

Six months ago, whilst starting pregnancy leave from work and reduced income, as she was main earner (Hubbie works for NHS).

She contacted Barclays to arrange a way forward.

 

Under these circumstances, I am trying to find out what would have been the best solution for her.

Her mortgage adviser seems to think she should have been offered a mortgage holiday, what appears to have been given is a six month reduced payment (50%) which is now coming to an end. She needs to move forward quickly.

 

As a result her credit history affected - think they have recorded them as late payments - she is on this with both Barclays and agency

Initially looking to see if the original offer was unfair and there could have been a better arrangement

 

Thanks in advance

Intend

[dx100uk]

possibly yes but I think it would be better if this were delayed until things settle shall we say....

 

most mortgage providers are now offering 3mts payment holiday online by simply filling in a form.

 

might it be better? for now to do this and in the meantime, once confirmation is received they will give the holiday, to also get an sar running so she has all relevant info for later.?

 

[intend]

Thanks for reply.

With regard to recent offer of mortgage holiday, I think I read would not apply to those in arrears! This sounds bizarre are those in arrears more likely to be adversely affected by the current lockdown.

 

Certainly a SAR is a start of what could be a long and stressful few months for them.

 

[intend]

Looking for the letter templates, used them in the past but cannot find.

Can anybody help. Plus an address if possible. In meantime will keep looking.

Intend

PS - site team advice - might this be better in the Mortgage section - just seen it on my search

[AndyOrch]

12 minutes ago, intend said:

Thanks for reply.

With regard to recent offer of mortgage holiday, I think I read would not apply to those in arrears! This sounds bizarre are those in arrears more likely to be adversely affected by the current lockdown.

 

Certainly a SAR is a start of what could be a long and stressful few months for them.

 

 

Subject to which Bank your Daughter banks with .....the following is Satanders latest official guidance.

 

" What is a mortgage payment holiday?

If you’re adversely affected by coronavirus, the Government has confirmed that you can take a mortgage payment holiday on your residential or Buy to Let mortgage for up to three months to help your financial situation.
 
If you take a mortgage payment holiday, this means that you wouldn’t make mortgage payments for up to three months and we’ll add these payments onto your mortgage balance. As a result, your mortgage balance will increase, and your monthly payment will be recalculated over your remaining mortgage term. Your monthly payment and the amount of interest you pay will increase for the remaining term of your mortgage. There is no fee for taking a mortgage payment holiday.
 

 

If you’re currently up to date with your payments, the mortgage payment holiday will not impact your credit score, and you will not go into arrears on your mortgage.
 
If your mortgage is already in arrears, you can still apply for a mortgage payment holiday and your current arrears will remain outstanding. The payment holiday will not increase your current arrears.
 
Please be aware that if you pay by Direct Debit and your mortgage payment is due within the next 10 days, we may not be able to arrange the mortgage payment holiday for your next monthly payment due to the automated Direct Debit collection process. If not, it will take effect from the following month. "

 

https://www.santander.co.uk/personal/support/loans-and-mortgages/coronavirus-faq

[intend]

Thanks, she is with Barclays - will check it out

[AndyOrch]

https://www.barclays.co.uk/coronavirus/mortgages/

[intend]

Thanks - does not look as promising as the Santander's offer - states if in arrears might not be best.

I am in a position to use my pension saving to pay off the arrears - so could be a way to buy 3 months to sort out.

 

[AndyOrch]

Might not be best for them if its a Barclays Mortgage...if not they have no option put to process..its whats best for your daughter in the current climate.

[dx100uk]

pers I would not be using any funds to poss hope to secure or resolve this issue.

it cant hurt to apply for the holiday as is and see what returns..

 

listening between the lines to a couple of shows this morning ..

it is more than probable the current situation will be extended well past april 

and likewise mortgage providers will do the same .

 

the initial 3 mts was an out of the air figure going by that current advice,

its pretty obv to me now we know more about the situation we could see mortgage providers automatically extending this to 6mts for those that have already applied.

[intend]

On 29/03/2020 at 13:44, Andyorch said:

Might not be best for them if its a Barclays Mortgage

 

Sorry, do you mean might not be best for Barclays? If so I agree, even in normal difficult financial times the bank act in their interests rather than customers - hence why in current situation.

Will get her to apply and see what comes back.

 

Dx - agree with holding off paying money unnecessarily and see what happens. 

Feel see may need a phone call rather than on-line.

 

Thanks for all your help. Need to process information

- Found the updated GDPR SAR letter

 

Daughter very stressed - husband frontline NHS in London just developed some symptoms of CoVid 19.

Worrying times for all.

Not sure wine will help today.

Intend 

[dx100uk]

Just click sar

[intend]

Thanks, greatly appreciated.

[intend]

HAs anyone an address for Barclays Mortgages SAR documents. Tried to use the link provided by Bankfodder on updated thread on GDPR and Sar but appears to be broken.

 

Thanks in advance as always

[slick132]

Main Head Office - 1 Churchill Place, London E14 5HP

[intend]

Daughter went on maternity leave and contacted her mortgage company (Barclays) and arranged a six month plan to pay reduced payments.

She has maintained this and now pays the full amount.

However she fears her credit rating might be trashed due to the way it has been reported.

She has SARd Barclays and I have asked her to find out, definitely, how this arrangement has been reported to the CRAs, by asking both them and Barclays for the necessary information.

 

In the meantime, to reduce her high level of stress, I have told her I would find out what SHOULD have been reported, hence this thread.

 

Any information or pointer in the right direction would be useful.

Basic question is "How should an agreed time-limited reduction in mortgage payments be recorded on a credit file?"

 

Interestingly, she wrote weeks ago requesting a conversation as to how best to pay off the arrears but has yet to hear back.

Even with the current situation, I find this appalling.

 

Thanks in advance.

Intend

 

[AndyOrch]

Quote

However she fears her credit rating might be trashed due to the way it has been reported.

 

Fears or actually knows how it has been reported ?

 

Andy

[intend]

It has been reported and has been adverse,  not sure of exact details.

Just trying to piece together all possible information for her.

Both her and husband work for NHS, both have had the virus and both very stressed at the moment, so trying to do what I can.

[AndyOrch]

Is it showing as an AP .....Arrangement to pay .?

 

https://www.consumeractiongroup.co.uk/topic/406261-credit-reference-agency-guide-the-a-z-of-understanding-and-managing-your-rating/

 

[intend]

Thanks for that link, have briefly read it but do not recall AP. Will read again.

Not sure the exact reporting  - will find out later today.

Thanks again.

[dx100uk]

retitled and moved to the Barclays forum

[intend]

Thanks

[AndyOrch]

Quote

We told John it would be reported to credit reference agencies before he agreed to the monthly repayment plan, and that it could affect his ability to get credit in the future. For him, entering into the repayment plan was still better than continuing to miss payments.

 

https://www.barclays.co.uk/money-management/money-worries/reduced-income/

[intend]

A fairly bland statement from the Barclays website - no real information about how reported or the consequences.

Would this "advice" not be covered by BCOBS?. Surely banks have a duty of  care their customers to fully inform them?

[AndyOrch]

Quote

We told John it would be reported to credit reference agencies before he agreed to the monthly repayment plan, and that it could affect his ability to get credit in the future. For him, entering into the repayment plan was still better than continuing to miss payments.

 

Seems clear to me......how they report it will by their normal channels and it will affect his credit in future....so must be an adverse marker....

 

Andy