GDPR Cookie Consent by SimpleServe Privacy Script Mortgage problem - need advice. - AAD Consumer Forum

Announcement

Collapse
No announcement yet.

Mortgage problem - need advice.

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
  • #1

    Mortgage problem - need advice.

    My relatively small ten year mortgage has just finished, but because i had arranged a mortgage reserve account which allowed me to draw down more money, I now owe more than first arranged. However the debt is still covered over 5 times by the equity in the property. I have paid all mortgage payments on time. I have contacted the lender and explained that I had put the house on the market to repay the debt and would pay a monthly standing order more than the interest into the reserve account (and have already started doing this) until the property is sold.

    The lender has sent a couple of letters demanding me to complete a full financial statement, and required copies of the property sale details. together with my authority for them to contact my estate agent to discuss the sale before they could consider any offer. I feel that the lender contacting my estate agent would be detrimental to my position, and I haven't agreed to this, or for that matter filled in a financial statement.

    My wife and I are on Pension Credit Guarentee...very small income...and don't want to lose our home due to any recovery action by the lender. How likely is this, and how long would it be before any recovery action takes place. Any advice would be most welcome.
    Tags: account, action, advice, authorisation, bank, barclays, con, credit, debt, details, estate, financial, fire, house, income, interest, lending, life, loan, mat, money, mortgage, overdraft, payments, pension, pressure, property, recovery, security, stay, unsecured, wife, world
  • #2
    Re: Mortgage problem - need advice.

    welcome to AAD

    Do you have all the t&cs of this deal?

    This isn't my area of expertise but I think you need to hold fire before you do anything.

    Do you want to sell your house or are you just doing so under pressure from this lot?

    When you say more than first arranged, do you mean more than your mortgage was?
    Our mortgage has an agreement like this included, and you can't draw down without authorisation, then it goes into your mortgage, so the first thing we need to know who is the lender and what are the t&cs

    And no it would be very very very unusual to lose your house to the lender, they would have to jump through a lot of hoops first and you are a very long way from that, so try not to worry about that.

    They do seem to be going in hard though (common enough ploy to frighten you), so we need a few details and we need to establish what kind of debt this actually is.

    Comment

    • #3
      Re: Mortgage problem - need advice.

      What do you want to happen in a ideal world , once we know this I'm sure we can come up with some ideas.

      Comment

      • #4
        Re: Mortgage problem - need advice.

        Thanks for your prompt replies, it's good to know that help and advice is available. I do have all the original paperwork in a file stored somewhere in the garage, and will try to find it.

        The mortgage reserve was arranged at the time of taking out the mortgage, in fact a further facility, and as the mortgage came down by payments I could draw down money from the reserve. The lender is a Building Soc. owned by a major high street bank, and the reserve was offered by the bank as a back up lending facility, secured by the property. I did not use this for a few years, but as the economy went belly up I had to use this account, and now am in the position of owing more than the original mortgage....all in the mortgage current account reserve.

        It's not what I ideally want, but purely for financial reasons I have taken the decision to sell the house, pay the debt, and buy another property outright so as not to have any debt. As I have already started paying money into the mortgage current account by standing order, can this be argued that the bank have accepted my offer of paying this until the house is sold? It's comforting to know that it takes some time before the bank would take any action, and hopefully the house will sell before this could happen.

        Comment

        • #5
          Re: Mortgage problem - need advice.

          I am sure you are correct, and everything they do will be for their benefit, not mine.
          It's Woolwich and Barclays.

          Comment

          • #6
            Re: Mortgage problem - need advice.

            so is this actually an overdraft/revolving account sort of thing or is it a mortgage?

            is it it secured or unsecured?

            all makes a world of difference

            Comment

            • #7
              Re: Mortgage problem - need advice.

              we've got one of these on mortgage but you need to draw down with permission, it just seems strange that they would allow you to draw down 5 times your mortgage, I think you definitely need to look at the agreement.

              then when you know what you are dealing with, you can decide what you want to do, not what they want.

              Comment

              • #8
                Re: Mortgage problem - need advice.

                Originally posted by MrsD View Post
                we've got one of these on mortgage but you need to draw down with permission, it just seems strange that they would allow you to draw down 5 times your mortgage, I think you definitely need to look at the agreement.

                then when you know what you are dealing with, you can decide what you want to do, not what they want.
                I think Exclus has a open plan mortgage and with those your didn't need any authority to draw down on the pre arrange facility as for the 5 times I think Exclus has 5 times the equity in the house compared to the loan.

                Depending on their ages they could always do a equity release mortgage/ life time loan to clear the mortgage and stay in the house.

                Comment

                • #9
                  Re: Mortgage problem - need advice.

                  You are correct mgfboy, we didn't need any authority to draw down as long as we kept in the allowed amount or balance.
                  Thought about an equity release, but think that the security of paying outright for another property is the right thing to do at our stage of life. If the bank start to put pressure on us I will post again asking for advice on how to handle them.

                  Comment

                  • #10
                    Re: Mortgage problem - need advice.

                    I appreciate this may be more detail than you wish to go into, but what is the value we are talking about.

                    I know you have mentioned 5x, but obviously 5*10K is a big difference from 5* 15 or 20K

                    Just that there may be other options available to you is all.
                    I'm an official AAD Moderator and also a volunteer, here to help make the forum run smoothly. Any views or opinions are mine and not the official line of AAD. Similarly, any advice I have offered you is done so on an informal basis, without prejudice or liability. If in doubt seek advice from a qualified insured professional - Find a Solicitor or go to the National Probono Centre.

                    If you spot an abusive or libellous post then please report it by Clicking Here. If you need to contact me, for instance if I've issued you a warning, moved, edited or deleted your post, please send me a message by clicking my username.

                    Comment

                    • #11
                      Re: Mortgage problem - need advice.

                      Originally posted by Exclus View Post
                      You are correct mgfboy, we didn't need any authority to draw down as long as we kept in the allowed amount or balance.
                      Thought about an equity release, but think that the security of paying outright for another property is the right thing to do at our stage of life. If the bank start to put pressure on us I will post again asking for advice on how to handle them.
                      Normally if you service the interest in the short term they wont have a problem until you get to 70+.

                      I understand what you saying though, having no debt is a good thing and if you need more money you can always do equity release on the new property.

                      Comment

                      Previous template Next
                      Working...
                      X