Mortgage question

[lookingforward]

Re: Mortgage question

Hi Plan B,

It was May 2014, I'll email you a copy.

Thanks

[PlanB]

Re: Mortgage question

The mortgage company upheld our complaint and compensated by taking some money off the mortgage balance so we have had no need or desire to complain to the FOS.

Was that Final Decision more or less than six months ago?

Either way may I see their Final Response letter by email or post up on here removing your personal details.

It's my view that compensation should be paid direct to the consumer not used to deduct from the mortgage but a lot will depend on whether it was "compensation" as in Goodwill for stress and inconvenience, or whether it was a rebate of overcharges etc.

I'm not around again until Friday.

Plan B x

[lookingforward]

Re: Mortgage question

For clarity,

The mortgage company upheld our complaint and compensated by taking some money off the mortgage balance so we have had no need or desire to complain to the FOS.

[lookingforward]

Re: Mortgage question

Hi Plan B,

Many thanks as always. No there's no complaint with the FOS, post #46 refers to the complaint we made to the mortgage company that was upheld and summarized in post # 51

I'll send a copy of the letter along with the previous 2 which will hopefully explain what I'm trying to explain in post #85 on this page about the arrears.

Thanks

[PlanB]

Re: Mortgage question

we now have until the end of the June to make next payment so need to contact them in response to their letter before hand to get an agreement in place

Why don't you email me that latest letter, I know you've summarised it in post # 84 but I'd like to read it for myself.

use planb@all-about-debt.co.uk

Isn't there still an outstanding Formal Complaint about all this registered with the FOS and didn't the lender write to you to say they would respond to your complaint by 28th May? In your post # 46. There have been so many complaints that I may be getting confused

You have a month to respond to this current letter so give me a nudge at the end of next week.

Plan B x

[lookingforward]

Re: Mortgage question

Mays mortgage payment now paid...had to be done via online banking as their automated payment line not open as office closed......errr that's why it's automated ??


Anyhow we now have until the end of the June to make next payment so need to contact them in response to their letter before hand to get an agreement in place

Thx

[lookingforward]

Re: Mortgage question

Hi PB

Thanks for replying. May's payment has been agreed so there's no immediate rush, they have said "at our earliest convenience" but obviously June and onwards needs to have a new agreement in place or we will be charged the £50.00 arrears monitoring charge.

The mortgage was changed to interest only when we started to get into trouble with the account at OUR request. Mortgage is in my partners (of over 20 years) name, she will be late sixties when this current mortgage expires (ssshhh don't let her know I told you that ;-) ....

Enjoy what's left of the BH and thanks again

[PlanB]

Re: Mortgage question

"we would ask you to confirm your intentions as to how you intend to redeem the o/s mortgage balance when the a/c matures as you are currently on an interest only mortgage."

. . . . To be honest we haven't thought as far ahead as 16 years odd when the balance is due as we've just been getting out heads down to pay each month.....I haven't got a clue if inflation would pay a large chunk of it if we were to sell then and go into rented ??

I wouldn't feel under any pressure to change your mortgage from interest only to repayment. Was it an interest only mortgage from the start or was that a concession when you got into arrears?

As you say 16 years is a long way off until it becomes an issue as to how you will pay them back the original loan. Their question is a little premature in my view. I get asked it too, and I always say that I intend to sell the property and downsize when the time comes. That usually shuts them up.

I don't know how old you will be in 16 years time but you may be in a position to ask them to extend the term of the mortgage at that point. The current criteria in the mortgage market is 75 years old at the end of the loan. However The Mortgage Works has a BTL product that would take me up to 103 years old when it ends

It's an annoying question because none of us has a crystal ball to know whether you may win the lottery next week or marry again seven times before the mortgage ends.

I'll look at everything else next week. What is the deadline for replying to the arrears' question?

Plan B x

[lookingforward]

Re: Mortgage question

Now we've actually been paying just over the agreed amount and to my working out it will clear the arrears by the end of the term although the amount in arrears is muddied by the fact that we always pay by the end of the month and they say it is due on the 1st so when they send the arrears statement they add on that months mortgage amount so the figure goes up. The amount we've been paying would clear the arrears according to the statement, but would miss out slightly when they add in the next months mortgage figure........................................hope that makes sense.

To try and clarify this..£26.00 extra towards the arrears over the remaining term is £5122.00 At the end of April the arrears were £4800.00 approx so the arrears would be covered THEN on the 1st May the new monthly payment is added as they say it's due on the 1st of every month ( we are allowed to pay within the month though) and the figure goes up to £5500.00 approx so now it's not covered by the £26.00 a month hence when they have just written the letter they are correct in saying that the £26.00 will not cover. We are only talking an extra £3.00 per month to £29.00 which would equal £5713.00 and it would be well covered so they are being a bit pedantic I think.

I do need to reply though, also on how the bal will be paid due to the interest only mortgage payments.

Anyone know of good sites to see what the monthly payment would increase to if we switched back to a repayment ?

Oh and did I say how much I hate doing I&E forms being self employed and being able to know what is acceptable to put in the various categories

[lookingforward]

Re: Mortgage question

So today another letter drops on the doorstep.

Firstly an apology for any inconvenience the previous letter may have caused.

This one states that they appreciate payments are being maintained, the additional amount of £26.00 towards the arrears will not clear the o/s arrears within the remaining term.

As we have stated our circumstances have not changed we would ask you to consider how you propose to increase the additional payment to ensure the arrears are cleared within the term remaining. Once increased we would ask you provide us with an I&E to make sure the new offer is affordable.

When supplying the above info, we would ask you to confirm your intentions as to how you intend to redeem the o/s mortgage balance when the a/c matures as you are currently on an interest only mortgage.

They explain that to give time May has been set at the previous agreement so there will be no £50 arrears monitoring charge but after that it will be applied until a new agreement is in place.


Now we've actually been paying just over the agreed amount and to my working out it will clear the arrears by the end of the term although the amount in arrears is muddied by the fact that we always pay by the end of the month and they say it is due on the 1st so when they send the arrears statement they add on that months mortgage amount so the figure goes up. The amount we've been paying would clear the arrears according to the statement, but would miss out slightly when they add in the next months mortgage figure........................................hope that makes sense.

To be honest we haven't thought as far ahead as 16 years odd when the balance is due as we've just been getting out heads down to pay each month.....I haven't got a clue if inflation would pay a large chunk of it if we were to sell then and go into rented ??

[lookingforward]

Re: Mortgage question

Thanks, I'll leave as is for the time being then.

If anything changes i.e. they agree a longer plan or fail to send an agreement each month I'll update here

[PlanB]

Re: Mortgage question

just had a letter through that confirms a payment arrangement but it's for this month only. Says the normal at the bottom about reviewing the arrangement on a regular basis to ensure it remains affordable etc etc

Now whether this is just a quick letter and another will follow to agree the 6 months or they intend to send a new letter every month I don't know.

I just wanted to keep you in the loop so to speak. Once I've got more time I do want to push ahead with capatalizing the arrears but at this moment in time it was easier to just re-send the previous letter (with new dates of course)

The longer they go on accepting your £26 per month towards the arrears in writing the better. You're creating a good solid paper trail. If they want to write to you each month to say the same thing as the previous month then that's fine too, even if it means they're wasting postage money.

Once you capitalize the arrears you will have to start paying interest on them so as long as the lender isn't threatening you with repossession then you can take your time.

Plan B x

[lookingforward]

Re: Mortgage question

Hi Plan B,

I got the standard letter saying they needed us to phone because the arrangement was up and as we're right in the middle of a lot of DIY-ing in the house right now I thought I'd just send them the same letter as I'd sent before i.e. nothing has changed so I will continue paying the same amount (mortgage + £26.00) for a further 6 months and reminded them of my previously upheld complaint about speaking on the phone and wanting everything done in writing.

Anyhow just had a letter through that confirms a payment arrangement but it's for this month only. Says the normal at the bottom about reviewing the arrangement on a regular basis to ensure it remains affordable etc etc

Now whether this is just a quick letter and another will follow to agree the 6 months or they intend to send a new letter every month I don't know.

I just wanted to keep you in the loop so to speak. Once I've got more time I do want to push ahead with capatalizing the arrears but at this moment in time it was easier to just re-send the previous letter (with new dates of course)

[PlanB]

Re: Mortgage question

getting the agreement for 6 months done on the phone

Everything is going according to plan

See you next May

[lookingforward]

Re: Mortgage question

Hi,

Update.
We rec'd a letter today stating that they hadn't had a response to their letter about the end of the arrangement. Checked RM tracking and our letter was rec'd by them at the end of Oct. The Mrs decided to ring to get it sorted and eneded up getting the agreement for 6 months done on the phone by saying nothing had changed (not sure if they had our letter in front of them) they will confirm by post.

So all good for now.

They did say that it would take until almost the full term left to clear the arrears at this rate and we're on interest only which is true and is something that needs addressing... but that's for the future