Mortgage arrears

Robson65

Hello,

My partners son has a mortgage with Halifax and has been out of work for six months therefore his mortgage is now in arrears.

The Halifax have emptied his savings account to offset these arrears without his permission.

Can they do this ?

Thanks
Robson

MORPH3US

I'm not sure on the answer, but why wouldn't he use the savings voluntarily to pay his mortgage anyway - save himself a world of bad credit history?

Robson65

I think he intended to and then got some temporary work so was hoping to catch up but the Halifax had already done it.

Robson

foreversummer

I would have thought this was his best option anyway. He now has no arrears to worry about and has money coming in from some temporary work.

Foreversummer

_Andy_

I believe it will be in their T&Cs of the mortgage that they can do so (and indeed makes sense all around to do so).

Robson65

I agree that it makes sense. If he'd listened to us he would have taken out payment protection insurance but they think they know best !

I'm just surprised that he didn't know anything about it until they'd done it. Surely they can't just take it without permission. What if he'd written a cheque from it or something ?

Robson

pawpurrs

If he is the only income earner he would have been entitiled to have the mortgage interest paid up to 200k, after 13 weeks of signing on on income based JS set at an interest rate of approx 6%.