No funds for mortgage redemption

singingdaddysgirl

Can anyone advice as to what pressure the Bank (HSBC) can exert if we are unable to repay our mortgage, due next month? The house is due to go on the market in April.

beecher2

Has your mortgage term on an interest only mortgage ended and you need to pay the balance? Or have I misunderstood? No matter what the issue, contact your lender ASAP.

singingdaddysgirl

Yes, Beecher 2. The mortgage is due to be repaid next month. We have been in touch with the lender HSBC and we are waiting to hear what they come up with. We have told them that we are putting our house on the market in April. The amount owing is £50,000 and the house has been valued at around £450,000.

TMSL

If you are attached to the house have you looked at remortgage options.

happybroker

I would think they would ask that you continue to make interest payments whilst the property is being sold with regular reviews.

I doubt very much they will get heavy handed with you.

singingdaddysgirl

Thanks happybroker. They have been talking about a re-mortgage which we don't want, as they are bound to charge set-up fees etc. They have asked for details of outstanding debts - credit cards, income etc. It has just occurred to me that maybe the chap who we have been dealing with (in the mortgage dept of HSBC) might be on commission or something. We had contacted the bank last year asking what the deal was if we were to ask for an extension and they were pretty positive at that stage.

singingdaddysgirl

TMSL wrote: »

If you are attached to the house have you looked at remortgage options.

Thanks - we are in our 60's and looking forward to exploring pastures new, so although we will be sad to sell, we need to realise some capital to invest, as our pensions are fairly rubbish.

happybroker

singingdaddysgirl wrote: »

Thanks happybroker. They have been talking about a re-mortgage which we don't want, as they are bound to charge set-up fees etc. They have asked for details of outstanding debts - credit cards, income etc. It has just occurred to me that maybe the chap who we have been dealing with (in the mortgage dept of HSBC) might be on commission or something. We had contacted the bank last year asking what the deal was if we were to ask for an extension and they were pretty positive at that stage.

I feel pretty sure that if you are dealing with the morgage seller in the branch you might be "nudged" toward a remortgage (incredibly).

You need to speak to the service centre regarding this really, the number should be on your mortgage statement.

VIGILANT22

Don't they offer payment holidays?

Conrad

I've known people not pay the mortgage for many months, even a year and not be repossessed.

I cannot judge what HSBC will do, but it's probably unlikely they would get a repo order for many months, especially if it were clearly the case you were selling up.

Now some here will take exception to this, but I try and bring a real world common sense perspective to these forums. I speak based on experience, not some vague paragragh on a lenders website. Real life cannot be condensed into a set of rules and clauses.

AS AN EXAMPLE OF WHERE THE PURITAN TYPES GET IT WRONG; In the past the usual 'puritainical' types 'warn' people that bankcruptcy is a big no no, but this is utterly baseless and at odds with my considerable real world experience. Even my own brother went bankcruopt - best thing he ever did, and none of the 'puritans' scare stories came to pass - he was allowed to carry on with a Woolwich bank account and nothing was repossessed.

People quite often cease payments when selling and as long as they dont mind thier credut rating being imparied (for example if intenting to retire and not require debts in future) then it in my experience has'nt caused them any harm, but has helped them through a difficult financial period.

Putting my compliance hat on, I would say, 'you should mainitain the payments as best you can'. Be aware house sales sometimes take years - I've witnessed this oftem, where buyers pull out at the last minute and so on.

Senior_Paper_Monitor

Conrad's comment is 100% valid.

If you wish to protect the credit rating (you may want the credit cards at their current limits for your travelling!) then pay the ongoing 'interest only' payment at SVR (assuming you can do so) and tell the bank in simple terms that 'is what is going to happen' until its is sold - they would be highly unreasonable not to go along with it.