Urgent advice - mortgage change from interest only to repayment

astep70uk

Hi all.

I'm in need of some good advice.....I took out a remortgage in 2006 on an interest only basis for £102k.
My husband left in 2008 and I have maintained the £500 a month payments.
Last year the mortagge company decided to change our mortgage from interest only to repayment (can they do this??) and therefore the payments have gone up to £800 a month which I can't afford.

They said that myself and my ex husband had to sign a form every 3 months to keep the terms on interest only which we have done.

I've just got a horrid letter from them this morning saying that I now owe a £2700 shortfall as my mortagge has been put back to a repayment term and if I don't pay before 29 January they'll start reposession?

Can they do this when I've kept my part of the deal all along by paying my monthly payments? And also can they change the product when I originally bought an interest only mortgage?

Thanks for any speedy help.....:(

Thrugelmir

astep70uk wrote: »

Hi all.

I'm in need of some good advice.....I took out a remortgage in 2006 on an interest only basis for £102k.
My husband left in 2008 and I have maintained the £500 a month payments.
Last year the mortagge company decided to change our mortgage from interest only to repayment (can they do this??) and therefore the payments have gone up to £800 a month which I can't afford.

They said that myself and my ex husband had to sign a form every 3 months to keep the terms on interest only which we have done.

I've just got a horrid letter from them this morning saying that I now owe a £2700 shortfall as my mortagge has been put back to a repayment term and if I don't pay before 29 January they'll start reposession?

Can they do this when I've kept my part of the deal all along by paying my monthly payments? And also can they change the product when I originally bought an interest only mortgage?

Thanks for any speedy help.....:(

Who is your lender ?

What mortgage product do you have?

You need to read your mortgage contract terms and conditions this will set out what your lender can do.

Conrad

You nmeed to contact thier chief complicance officer now. Take full names, and notes as you go. Follow up with a letter sent via special delivery - to the chief compliance officer.

The call centre staff are often not trained well enough to know the rules. You are entitled to deal with the compliance department. Try not to deal with non compliance dept people.

The core of your case wrests on this;

The FSA jhave strict rules that require lenders to TAKE ACCOUNT OF INDIVIDUAL CIRCUMSTANCES.
They are not entitled to switch you to repayment if such a move causes financial distress.

SET A 7 DAY DEADLINE FOR THIS TO BE RESOLVED.

Ask the compliance officer for the MD's address - do not back down on this when they tell you they cannot divulge this.

Good luck, and get ready for a wall of incompetence.

astep70uk

Thanks guys....here's the update.
I'm with the Cumberland Building Society who have been shocking towards me in my circumstances.. My ex husband wants the house reposessed as he begrudges myself and children living there. I received a lengthy letter from the Cumberland on Friday...2 days after their 10 working day deadline to resolve complaints. In it they included the original mortgage application forms in which the terms and conditions etc state that it is an interest only mortgage for x number of years. The only thing theyre trying to say is that in that application I say that it is for the benefit of me being on maternity leave. However, just after that maternity leave ended myself and my husband split up, leaving me with only one income hence wanting to keep it on interest only.
The Cumberland are now saying that they only do interest only mortages for 12 months maximum, and they've been lenient with me allowing me to have one since 2007.
They've tols me I can keep it on interest only until end of September providing I put my house on the market by 31st march.
Can they do this......I really need some good advice!!

I've also spoken to the FSA who tell me I've got a strong case in court...and I'm busy constructing a reply letter to the CEO of the Cumberland.
Basically....I've kept then informed at all times about my personal situation....haven't missed any payments....and are being treated really unfairly.

Any help is much appreciated guys.....thansk in advance!!