Can I take a payment holiday if I'm looking for a job?

Posted on 14 May 2008

Hi

What reason for a payment holiday would be acceptable to my lender? I am on the verge of taking voluntary redundancy & want to take time off whilst looking for a suitable new post.

It depends on who your lender is, and whether you are taking the payment holiday from money you have overpaid. I see your concern, payment holidays are intended for people who are taking sabbaticals, having a child or some other reason that would have a set return date with set income. However, as you are taking redundancy with no immediate new job, the lack of future income could be a problem for them.  

What you need to do is ask your lender for the terms and conditions of your flexibility, as ideally you would want to tell them the truth.

 

 

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