Worried about getting Black listed for reducing mortgage payments

[OkeyDokey]

A friend is having difficulty with his mortgage and is reluctant to renegotiate with the bank out of concern of being black listed.

Is it possible to negotiate a reduced monthly payment (by extending the term) without losing credit rating?

 

[Sunny]

Yes it is possible. ALWAYS ALWAYS communicate and try to negotiate with your bank. It is in their interests to help and will examine all options as long as you are seen to be making an effort.

 

[Brendan Burgess]

Agree with Sunny

If she agrees to a reduced repayment plan it will be noted on her ICB record, but not reflected in her credit score. So it will have very little effect on her credit rating.

However, if she misses a payment, it will be reflected in the score and it will affect her for some time to come.

Brendan

 

[95a]

your credit profile will show the alt repayment arrangment as "M" each month, viewable for 24 months while the loan is open.

you will have to explain it to anyone you go to for future credit as it doesn't say whether it meant you were paying interest only, more than interest etc