Mortgage question

[PlanB]

Re: Mortgage question

All good

Maybe add to Point 3 the reason why you have chosen £26 as the monthly arrears payment. You could say you have taken advice and have been told that this would be sufficient to pay off the arrears by the end of the term of the loan. If it was me I would say that you've been given case law to support this.

On Point 5 you could ask them to refund the arrears monitoring charge as you don't think it's fair considering you have remained in touch throughout the period (if you have). They'll probably say No, but if you end up going to the FOS they (the FOS) will only investigate issues you have raised with your lender first, so raise it now.

When you've done your letter send it in the post with proof of posting and also email them a copy.

From what you say maybe your lender won't go for an Eviction Warrant based on that SPO but you need this paper trail to show to a court in case they do. Once that SPO has been cancelled or they admit to you in writing that it's extinguished then you can relax a bit more. Quite frankly I think bullying your other half over the phone into believing something which is not true, deserves a complaint to the FOS and some token compensation. If nothing else that will stop them doing it again.

[lookingforward]

Re: Mortgage question

Thank you, will send out. Just wish they would capitalize again

[PlanB]

Re: Mortgage question

Just wish they would capitalize again

There's no reason why they shouldn't capitalize your arrears for a second time if they want to.

Most lenders like to see a six month ATP (Arrangement To Pay) being honoured before they'll consider capitalization. So if you can get this £26 accepted and if you can stick to it then I think you should ask them to add the arrears to the loan after six payments have successfully gone through.

The only down side of that is your monthly payment will increase because when arrears are added to the loan they will start to attract interest on them since they will be "capital borrowed" and not "arrears owed" where interest is not charged.

If you can tidy up your file by getting shot of the extinct SPO and perform well for six months then you'll stand a good chance of capitalization because it'll be over five years since they last did this.

If they do agree to your £26 per month offer then I'd be inclined to pay them £27 (if you can manage that) so you can honestly say that you have overpaid your agreement. That always looks good.

[lookingforward]

Re: Mortgage question

There's no reason why they shouldn't capitalize your arrears for a second time if they want to.

Most lenders like to see a six month ATP (Arrangement To Pay) being honoured before they'll consider capitalization. So if you can get this £26 accepted and if you can stick to it then I think you should ask them to add the arrears to the loan after six payments have successfully gone through.

The only down side of that is your monthly payment will increase because when arrears are added to the loan they will start to attract interest on them since they will be "capital borrowed" and not "arrears owed" where interest is not charged.

If you can tidy up your file by getting shot of the extinct SPO and perform well for six months then you'll stand a good chance of capitalization because it'll be over five years since they last did this.

If they do agree to your £26 per month offer then I'd be inclined to pay them £27 (if you can manage that) so you can honestly say that you have overpaid your agreement. That always looks good.

Gotcha thanks

[lookingforward]

Re: Mortgage question

Just a quickie, is it ok if the I & E shows a £40.00 surplus to only offer £26.00 towards the arrears ?

[PlanB]

Re: Mortgage question

Gotcha thanks

I love your username change from "fedupwiththeworry" to "lookingforward" . I'm all for positive thinking

[PlanB]

Re: Mortgage question

is it ok if the I & E shows a £40.00 surplus to only offer £26.00 towards the arrears ?

Yes.

Put that £14 surplus down as "contingency". Although I'm not sure you can replace a boiler or a car tyre for as little as £14 these days! Everyone needs to have funds for emergencies. Even NHS subscriptions cost about £8.

I know it's horrid to have to account for every penny (I'm going through the same thing at the moment with something) but just see this as a necessary evil.

[SaltnVinegar]

Re: Mortgage question

Yes.

Put that £14 surplus down as "contingency". Although I'm not sure you can replace a boiler or a car tyre for as little as £14 these days! Everyone needs to have funds for emergencies. Even NHS subscriptions cost about £8.

I know it's horrid to have to account for every penny (I'm going through the same thing at the moment with something) but just see this as a necessary evil.

Absolutely double/triple/quadruple this advice - you MUST put a sensible contingency and don't let any creditor bully you into lowering it. A few years ago I didn't go to the doctors to deal with an infection for almost 2 weeks because I couldn't afford to pay for the prescription. Its not a place you want to be (though your creditors won't give two hoots). If you end up not using it then you just put that money away for when its needed (because the oven/boiler breaking ALWAYS occurs in the middle of the month and when you need it the most), or you save up a nice slush fund for making F&F offers, or (heaven forbid) treat yourself occasionally. Even a judge won't forbid you from having the odd posh coffee and slice of cake!

Best
SnV

[lookingforward]

Re: Mortgage question

Brill thanks everyone

[PlanB]

Re: Mortgage question

I've got your PM and I'll reply to it tomorrow.

The commitment you (your partner) made was to get back to your lender with an offer by 14th April. You're well within that timeline

[lookingforward]

Re: Mortgage question

I've got your PM and I'll reply to it tomorrow.

The commitment you (your partner) made was to get back to your lender with an offer by 14th April. You're well within that timeline

Thanks

[PlanB]

Re: Mortgage question

I've replied to your PM.

Did you head the letter you sent FORMAL COMPLAINT?

I would still ring them on Monday (14th April) as agreed simply to say that you have written to them with an offer to clear the arrears and enclosed your I & E with that letter. You promised to ring so your call will be expected. You want to avoid them acting as if you broke that promise. Your letter will have probably gone to a different department so the call centre might not know about it. Tell them you have been advised that everything should be in writing from now on due to the seriousness of the situation which you have identified in your formal complaint letter.

Then hang up (after saying Goodbye politely) once you've got the name of the person you spoke to. Don't get drawn into any conversation. All calls are recorded so it's wise not to chat in case you say the wrong thing under pressure.

They have to acknowledge a complaint in writing within five working days, so let's see what they say next

[lookingforward]

Re: Mortgage question

Thanks, I've replied to your pm and am sending the letter out Monday but will now get my partner to ring that day too

As per the copy I sent you it's headed Complaint, should I add the word formal ?



"Tell them you have been advised that everything should be in writing from now on due to the seriousness of the situation which you have identified in your formal complaint letter."

As previous comments, they haven't threatened anything thus far other than the comment about the SPO at the end of the prev conversation, I've no problem using this wording but always worry I'm putting the word serious in their heads when it wasn't there before if that makes sense lol

[PlanB]

Re: Mortgage question

As per the copy I sent you it's headed Complaint, should I add the word formal ?

. . . . they haven't threatened anything thus far other than the comment about the SPO at the end of the prev conversation, I've no problem using this wording but always worry I'm putting the word serious in their heads when it wasn't there before

I've replied to your PM promptly this time

No need to add the word "formal" if you don't want. A complaint is a complaint. Maybe put the word in BOLD or underline it so they can't pretend it wasn't a complaint which needs to have a specific handling procedure in case you end up at the FOS.

If you prefer to remove the word *serious* that's fine too. It's not putting the thought into their heads because that thought is already there. Having arrears of the size of yours is serious. I don't want to alarm you but the way I see it (from what you've previously said in a PM) they have every right to issue new possession proceedings which is why I'm treating this seriously.

Furthermore until that previous SPO is extinguished/cancelled there is still a risk they might activate it. Whether they'll succeed in court or not is another matter, but you don't want to go through that nightmare if you can avoid it.

I got a summons for possession a couple of years ago simply because the lender's database was set to trigger legal proceedings on a specific date if I hadn't sorted an ATP. The Mortgage Express' computer sent an electronic message to their solicitors' computer and that resulted in a summons being issued online from MCOL. There wasn't a single human being involved in the chain of events. Some of the decisions lenders make are automated

[lookingforward]

Re: Mortgage question

Understood and I'll do exactly as you've said, thank you