TL;DR: some mortgages let you skip a payment. Sometimes you have to make an extra payment before you can skip one later. You have to make all your payments on time up that point. If it's not a feature of your mortgage, and you encounter major life events, it may still be something your lender will negotiate, but don't rely on it.
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No matter how good you are at budgeting, everyone runs into unexpected expenses. Car repairs, sickness and more can cut into your bottom line and leave you struggling to make ends meet. The good news is some mortgages offer the option to skip a payment at some point during the term. The options available when it comes to skipping a mortgage payment are in the terms and conditions of the mortgage agreement.
Before you decide to skip that next payment, consider how that decision could impact your mortgage.
Qualify for skipped payments
If you have a clause permitting skipped payments in your mortgage agreement, skipping a payment now and then should not be a problem so long as:
- You have not missed one or more payments and your mortgage is considered in arrears
- The balance of your mortgage plus the skipped payment does not equal more than the original amount of your mortgage
Even if your mortgage does not specifically offer a skip a payment option, you may still be able to skip a payment if you find yourself in extenuating circumstances, such as job loss or bereavement. In situations like this one, the above two criteria would still apply, It helps even more if you have use your prepayment options at some point in the past. Speak to your lender and tell them what's going on, and if you've paid extra to the mortgage in the past, be sure to mention that. You may be permitted to skip a payment as a one time exception, but it is far from guaranteed.
Does skipping a payment help me or hurt me?
If you are facing a financial crisis such as losing your job or illness, skipping a payment can help you resolve the immediate issues. In the long term though, it means you could be paying more because of the interest charges. This is why it is recommended that you try and pay back the skipped amount as soon as you can.
Process of skipping a mortgage payment
To skip a payment, speak to your lender and advise them you want to take advantage of your skip a payment option. They will arrange with you which payment will be skipped.