RBS One account over facility

melie3 · 19 December 2007 at 12:57AM

hi all,
needy of some advice. ive the RBS one account mortgage, and 3 months ago went over facility. the one account upped our facility by 1850. on 1st january 07, its set to decrease to original amount. i dont have the £1850 to pay, and actually have rang them every month saying this. they said if i stayed within the facility, it may be extended. today they told me they cannot assist me anymore, and said i needed to seek advice. both my hubs and i salaries are paid in here. im on maternity leave at the moment. they also say that mt dd's wont be honoured. ive non-prority debts of £27,000 which were in debt management with the CCCS, but the CCCs have ceased taking payment from me due to mortgage problem. i offered to pay one account my interest payment (£480) plus a £100 to pay off the 1850. they said that 18 months is unacceptable to pay and said they would require me to pay within 4 months. im so upset. ive 3 kids and im worried that i wont have any money now. ive had a conversation with national debt line today, who say theat its an unreasonable length of time to repay amount, they also suggest i write a letter exersizing my right of appropriation. ive been lucky i guess before, as ive been over facility and never been charges and items have been paid, but they are being really stubborn and wont hear of me wanting some help. all they say is that its would be irresponsible of them to keep our facility at the current 82,000, so to decrease to 80,150. after my dd's are paid and interest, and fuel for car is paid, im left with around £500 to live on without the £100 ive offered, so not exactly a kings ransom with 3 small children. i know ive got us in this mess and need to get out of it. just living is so damn expensive of late.
any advice kindly appreciated.

wymondham · 19 December 2007 at 8:44AM

hi melie
sounds like the biggest problem is more going out than coming in (isnt it always? :rolleyes: ) - sounds like this is where you should be looking. Post your SOA on the debt forum so they can offer advice on ways to manage your spending - they are a great bunch and I'm sure they will be able to help! Good Luck!

silvercar · 19 December 2007 at 1:36PM

Sounds like you shouldn't have been on the one account in the first place.

The one account is an offset mortgage designed for people with savings to benefit by offsetting their savings against their mortgage. Current account mortgages (as this is) are really designed for people able to manage their expenditure well.

Who advised you to take this mortgage? You would have been better off with a more straight forward mortgage.

Your situation now is that you are over the maximum mortgage balance allowed similar to overruning on an agreed overdraft.

Can't offer any more advice other than querying why you were advised to take an offset mortgage and suggesting you cancel some of the DDs in the short term.

HelpWhereIcan · 19 December 2007 at 2:19PM

The good news is that you have been doing things the right way up until now - keeping everyone informed of the actual situation. Take a deep breath and pat yourself on the back for doing that. Do not allow stress, fear etc to undo the good work you have done so far - it is vital that you keep communicating with your lenders.

melie3 wrote: »

i offered to pay one account my interest payment (£480) plus a £100 to pay off the 1850. they said that 18 months is unacceptable to pay and said they would require me to pay within 4 months.

In general, the collections teams at lenders work to (and are rewarded based upon) targets - the more they collect from you and the quicker they do it, the more bonus they get. That is the source of the 4 months timescale, nothing else.

Worst case scenario they take you to court looking for possession. If you can then show the court that you have tried to come to a reasonable arrangement the most they will do is grant a suspended possession order. That is they will order you to make a certain payment (possibly in line with what you have offered) and the possession will be suspended for as long as you stick to that arrangement. In most cases the suspended order is for 6 months and if you get up to date (eg once you are back to work) within that period the possession order is lifted. If you are not up to date, most lenders would agree to capitalise the arrears (add them to the debt) as you have made an arrangement and stcuk to it. Even if they still want possession they will have to go back to court for it and you have you chance to get more time again.

Provide The One Account with a Statement of Income and Expenditure showing that the offer you have made is all you can afford (you will get no sympathy from the court or anyone if you can actually afford more). In most cases a lender is trying to find out who 'can't pay' and who 'won't pay'. Once you are put in the former category they become more amenable (especially as the FSA insists that they treat the customer fairly... mention this and the person you speak with should be aware of what it means.

Keep a record of all offers you make and receive and make sure that you deal only in writing from now on (but do not use that as an excuse not to communicate with the lender) so that you have an evidence trail if/when it goes to court.

Have a look at http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf and good luck - you are doing things the right way. Do not let bully boy tactics put you off.

RBS One account over facility

Comments

Categories

Get our FREE Weekly email full of deals & guides - and it’s spam-free