Halifax withdrawing o/d - I'm in such a mess

HOPE1234

Hi,
I am looking for advice please as I am panicking so much I can't think straight.


I have a current account with an o/d of 900 pounds which is about to be withdrawn. On the 15th march it will go down to nil which will leave me in a terrible financial situation.
I have read advice on other threads saying to apply for a parachute account and arrange to pay Halifax back at xxx a month.


The problem I have is that my mortgage is also with the Halifax and I may need them to consider me either going onto a int only product or maybe letting me re mortgage at some point.


My partner and I split a while back and are still sharing the house as my ex can't afford to move out as he hasn't got any work (he's a plasterer). He has been paying his share of the mortgage up until this month but all that about to change . He is even having to borrow off friends and family to eat . Things are very strained at the moment and we go from not talking at all to screaming at each other. Our kids are starting to suffer because of how bad things are getting.


Ex wants me to buy him out so we can move on with our lives and he's starting to pressure me.
The alternative will be to hang onto the house and sell in 2 years when my youngest leaves full time education. I really want to stay in the house if I possibly can though


So I was wondering if anyone knew what would happen if I defaulted on my O/d, with regard to my mortgage ?


I have a terrible credit history as ex filed for bankruptcy 5 years ago leaving me with masses of debt(long story).


I am currently on a repayment mortgage until 2012.
What happens when it comes to the end of the fixed rate ?


My mortgage is fairly low about 48k and house will probably be worth about 120k so got a bit of equity in it.


I am on a fairly low wage which is topped up by tax credits,but if the kids and me live very frugally I can just about make ends meet by dipping into my o/d.


So what should I do ?
I wont be able to get another current account as my credit history is poor. Will Halifax penalize me on my mortgage if I take my salary elsewhere and put it in a parachute account and arrange to pay them back monthly for the o/d ?


Please help I am so worried and stressed and feel I am about to hit braking point x

boredofbeingathome

Hi welcome to the boards.
Just wanted to say a couple of things really.

1. Have you contacted Halifax and asked about going onto an interest only mortgage? You may be surprised as it is just a case of swapping although they may only do this for a ltd time.
2. Your ex is bankrupt and you are in the house until youngest leaves full time..you may be better posting this question on bankruptsy board as the OR may have an interest in the Capital.
3. Have you done a full SOA? looking at all your income and outgoings etc? There may be ways we can help you.
Sticky for this is at the top of the board.

Look at what can be done now and then see if there are further things which can be done.

http://forums.moneysavingexpert.com/showthread.html?t=107280

HOPE1234

Hi and thanks for the reply.

I haven't contacted Halifax with regard to interest only mortgage yet. I keep putting it off ,but I think I need to do it now.I'm a bit of an ostrich really, as I am worried they will look at my credit history and will not want to keep me as a customer .

I have always maintained my mortgage payments and never missed, or been late with a payment.My mum drummed into me to always pay the morgage,come what may.A roof over our heads has always been my priority.

I am safe with regard to OR having an interest in equity as I bought my exs beneficial interest out at the time of his Bankruptcy.My mum stepped in and lent me the money.I had the choice to have the deeds changed to show me as being sole owner. I chose not to as our relationship was good and didn't ever expect to split up.We had been together 13 years at time of his bankruptcy.
With hindsight.....

I will have a look at the SOA and post back later

bank_of_slate

Has you ex been on https://www.myhammer.co.uk to look for jobs to do? It's a great site for tradesmen who then build up positive feedback and hopefully brings in more work.
...Linda xx

TismE_3

What an awful worry, sorry i can't offer any advice really.

Have you spoken to your bank about why your overdraft is being withdrawn? Have you spoken to the bank at all?
if so, what did they say?

I have read of quite a few banks doing this over the last day or so, there was a thread over on the current accounts board......try posting over there too, someone might be in a better position to help.

My heart really does go out to ya, im scared stiff incase mine does the same to me, i'd be in the biggest pile of dodo if they did!! :eek:

Tisme x

boredofbeingathome

HOPE1234 wrote: »

Hi and thanks for the reply.

I haven't contacted Halifax with regard to interest only mortgage yet. I keep putting it off ,but I think I need to do it now.I'm a bit of an ostrich really, as I am worried they will look at my credit history and will not want to keep me as a customer .

I have always maintained my mortgage payments and never missed, or been late with a payment.My mum drummed into me to always pay the morgage,come what may.A roof over our heads has always been my priority.

I am safe with regard to OR having an interest in equity as I bought my exs beneficial interest out at the time of his Bankruptcy.My mum stepped in and lent me the money.I had the choice to have the deeds changed to show me as being sole owner. I chose not to as our relationship was good and didn't ever expect to split up.We had been together 13 years at time of his bankruptcy.
With hindsight.....

I will have a look at the SOA and post back later

Ring them, at the end of the day they can only say no. There are threads about it somewhere, mostly from what i have read, they charge an admin fee for a change to interest only, if you want to take out further equity then that is a different matter.

I am sure you can get this sorted out and i would also get the advice of a good lawyer, many of them do a free consultation initially. Or i am sure you can get advice from some of the debt charities, but not actually sure on that one.

nova

Hi Hope,
lm in a similar position to you, had my o/d called in yesterday, l know l was living in it but not going over it, now they've completely !!!!!!ed up my finances.
Anyway l've got a new account with natwest, it's very basic infact l think thats what it's called, no o/d facility but you can apply on line and you can have money paid in and do DD's.
I hope you get it sorted, they dont help do they just put people in a worse situ, its alright for them, they've been bailed out, what about us?

TismE_3

Just looked on other post and that was also the halifax.

Nova what bank was yours, ? if you dont mind saying ?

gazindebt

Hi
i am on a dmp and my halifax overdraft is included in it , i also have my mortgage with them . I have had no problems with them at all regarding mortgage and all interest and charges stopped on o/d , in fact they are the best of my creditors , found them helpful when speaking to them

gazindebt

sorry forgot to say i have my wages paid into my new account and pay mortgage from that with no problems

bank_of_slate

I have just sent a message to Martin Lewis:
"Looking at quite a few posts on the DFW board it seems that HBOS are removing prior arranged overdraft facilities from customers with no warning whatsoever which means that the customers are immediately subject to their high charges of £35 per transaction unless they have the means to get their account immediately in credit.
They are obviously doing this to pay for their mistakes, can they legally do this?
I think it's disgusting behavior that should be highlighted.
...Linda xx"

I will let you know what his reply is.
...Linda xx