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Mortgage arrears fees

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  • Mortgage arrears fees


    I am not sure if this is the right place - fingers crossed it is!

    I accumulated arrears on my mortgage with GMAC, now known as Foundation Home Loans in 2007, my daughter as placed on the heart transplant register and I was during the same period of time allocated an adult social worker after being placed in crisis by the mental health team and was given a BPD diagnosis.

    During the period of arrears I informed GMAC of what was happening, sent medical documentation as to why I had fallen into arrears and asked for capitalisation etc, this was refused and was informed I had to reduce the arrears by x amount for this to be considered and avoid repossession. The mortgage payment at that time was £327 per month, the payment plan they wanted was £1300.I was so scared of losing my medically adapted home I agreed knowing I could not afford the payments (it was higher than my salary at that time) and was in a constant cycle of arrears until they went for possession. At the hearing the judge stated the approach to us was irresponsible and suspended the repossession, the arrears were capitalised and I am happy to say a few years left before the mortgage is paid off.

    Fast forward to 2018 I received a letter full of legal Joargon I did not understand and stated we had been awarded a redress of £323.00, I queried why only that amount as the arrears fees whilst I did not know the exact amount I knew it was far higher and was told the fees were time barred and the FOS on that basis were unlikely to take the case although they did make me aware I could refer it to them. Again, I was in crisis and never fought them.

    A few weeks ago I realised that an official mortgage break due to COVID had been incorrectly reported as arrears, I got that sorted and in a conversation I asked them what impact capitalisation had on my mortgage and would I still pay off at the end of the term. I found out that the total balance outstanding included just short of 10k in mortgage arrears fees.

    I am mentally far stronger now so did some googling and found that GMAC had been fined for treating customers fairly, I complained to them that my vulnerabilities at that time were not taken into consideration and they had been irresponsible in their approach by enforcing repayments I could not afford and their statement in their letter in 2018 was misleading, they have said they will not look at my complaint further as I did not refer to the FOS in 2018.

    To put this into context at the time of capitalisation the arrears were £1778 - the fees charged are nearly £10,000 - This is made up of £75pm for being in arrears and £50pcm for a non direct debit despite card payments being made. Is this correct that as I did not refer to the FOS in 2018 I have lost all right to complain? I should also say that some of the fees imposed were solicitors and repossesion costs but again if I had an affordable repayment plan they could have been avoided - I am still in the same home which proves that point and if not for these fees my mortgage would be more or less clear.

  • #2

    You need some qualified legal advice. I suggest you email Colin Quinn, who regularly offers advice to members here. He may be able to clarify your position. His contact details are -

    "I am a Litigation Executive at Joanna Connolly Solicitors a firm which specialises in consumer credit. If you need to contact me you can send a message by clicking on my username or by emailing me at or by telephoning 0330 053 9340. Our initial advice is always free."

    Link back to this thread on AAD so he can see what you have written.


    • #3

      First off, I can see you have undergone a quite traumatic time. I hope you are your family are ok.

      Secondly, what a despicable act to commence possession proceedings, especially in view of the evidence you provided. It is refreshing to see that a Judge considered the issue in full. You say the repossession was suspended. Was it suspended indefinitely or has it since been withdrawn etc?

      Thirdly, given what you have said about the company, and I must admit I have had no prior dealings with them, I certainly wouldn't take their word for it that you have no valid complaint. If it suits them it certainly sounds like that is what they would tell you regardless.

      If FOS have made a decision on a matter and both parties have accepted it, then the decision is binding. Albeit, the FCA are always the first to stress that they can be overruled by the Courts. Are they suggesting you can't raise a complaint with FOS because you have agreed with a previous decision on the matter?

      The charges you refer to do seem excessive and out of control, however, I again admit that mortgage issues are not my speciality. Joanna knows far more than I do. One thing I do know is, a current statement should not include fees and costs for failed possession proceedings. Legal fees and costs are only payable upon Order of the Court. From what you have said there is no such Order.

      If you want to send me the most recent correspondence you have received, we'll take a look and get back to you. My email address is below.
      Legal Disclaimer

      I am a Litigation Executive at
      Joanna Connolly Solicitors a firm which specialises in consumer credit. If you need to contact me you can send a message by clicking on my username or by emailing me at or by telephoning 0330 053 9340. Our initial advice is always free.

      Any posts I make on the AAD Consumer Forum are for information and discussion purposes only and shouldn't be seen as legal advice. Any advice I provide on the forum is without liability. If you are unsure please seek formal legal guidance or contact your local citizens advice bureau at