Royal Bank of Scotland won't help me

clairebabylion

My fella has called RBS as we're struggling with repayments. He is self employed work has dried up and he has managed to get a part time job in a supermarket but it doesn't cover the bills.

I have asked the mortgage company, RBS for a payment break or to go interest free and they say they don't do this.

Has anyone got any suggestions to get them to change their mind.

Cheers for reading.

Cannon_Fodder

Do you think you qualify for Homeowners Mortgage Support ?

print off http://www.communities.gov.uk/documents/housing/pdf/1205889.pdf take it in to RBS and ask for all your taxes back (the Govt gave them £20Bn to keep in business) until they do something to help...

System

RBS do put mortgages on interest only because we have done just that , ring them again ,did you ring the mortgage centre or your local branch ?

beecher

CHRISSYG wrote: »

RBS do put mortgages on interest only because we have done just that , ring them again ,did you ring the mortgage centre or your local branch ?

It may be down to the LTV. OP, is the house in negative equity, or above 90% LTV?

Is it an option to increase the remaining term, or does that not make much of a difference to payments?

clairebabylion

CHRISSYG wrote: »

RBS do put mortgages on interest only because we have done just that , ring them again ,did you ring the mortgage centre or your local branch ?

Yeah, we rang the mortgage centre, they said no, then I rang my local branch so see if they could swing something for me and all they said was go to Citizens Advice and get help from them.

We bought the house 14 months ago, 95% mortgage, it was a repossession so don't think we paid over the odds for it and have done work to it since to improve it but don't know what its worth now.

The mortgage is fixed rate for 3 years.

I hope that helps answer some of the questions.

beecher

The fixed rate is for 3 years, but how long is the term for? Though if you only bought it 14 monts ago, increasing the term is unlikely to make much of a difference I fear.

I think it is the LTV which is the problem - the house is likely to be in negative equity, and RBS will certainly believe it to be over 90% LTV. Many lenders feel the Mortgage support scheme isn't suitable for those in negative equity, but phone them and ask.

All I can advise is to go onto the Debt Free Wannabee forum and post a Statement of Affairs to get help on how to you can continue paying the mortgage by cutting back on other expenditure, ie selling car/cancelling Sky/gym etc.

clairebabylion

Sorry forgot to add that bit, its a 30 year term.

OK, I'll get my act together and got through my expenditure, however already called both finance companies for our cars and the only way out is by buying ourselves out which defeats the object unfortunately.

Thanks for your help.

Mrs_Bumble

They may not be happy to offer a payment holiday or to switch to interest only because of the LTV but they are obligated to help you if you are suffering financial hardship and should work out a payment arrangement with you.

This leaflet offers very good advice

http://www.moneymadeclear.fsa.gov.uk/pdfs/mortgage_cantpay.pdf

It is the FSA guide, quote it at them!

clairebabylion

Thanks very much, I've just printed it off so I can rear it through.