Shocking advice from HSBC

SouthCoast

Having problems with your mortgage payments?

http://mortgagehelp.direct.gov.uk/default.aspx

VIGILANT22

Take control

If you find yourself in financial difficulties, it's in our interest, as well as yours, to find a solution.

The Banking Code sets out how financial organisations deal with their customers and states that banks will deal sympathetically and positively with people in financial difficulties.

With your co–operation we'll help you to develop a plan for dealing with your financial difficulties and we'll confirm in writing what has been agreed. Don't try and make payments you can't afford and can't maintain.

It's important for you to keep in touch with us, especially if circumstances change. We're happy to communicate with you or your advisor by phone, in writing or by arrangement by fax, depending on your preference. You may also arrange for a discussion at a local branch.

If you're using a money advice service, please tell us immediately so that we can allow sufficient time for your discussions with them.

http://www.hsbc.co.uk/1/2/about/getting-help;jsessionid=0000yrPRsnLvZyg_9kAd2JKHK9R:14et5mg1o

Dan_1976

VIGILANT22 wrote: »

Not quite true.... The Banking Code requires that a lender must be sympathetic and positive when considering cases involving financial hardship.

Spot on, defaulted or not, they are meant to be sympathetic. Also 99.9% of charities and organisations in place to help with financial matters will advise you to tell your lender and go through your options.

OP: You will find the office of fair trading have some very good info regarding help, also national debt line are good and I think it is easy to access the info you need under one roof. Your trying not to default, they need give you options, although there may be less if your not in arrears.

http://www.nationaldebtline.co.uk/england_wales/debt_advice.php#3

Good luck

SouthCoast

And this is advice from CAB:

http://www.adviceguide.org.uk/index/your_money/money_management_index_ew/mortgage_problems_index_ew.htm

Pauleb80

Many thanks for the responses. Have an appointment with CAB next week so will see where to go from there although already have some useful info from this thread so thanks again.

Dan_1976

Good luck, I know what your going through, its tough but you will get through it!

ILW

Pauleb80 wrote: »

Many thanks for the responses. Have an appointment with CAB next week so will see where to go from there although already have some useful info from this thread so thanks again.

Have you addressed why you are having problems meeting the mortgage repayments?

claretmatt

TOPIC – Treatment of borrowers in arrears

In the first part of CP 10/02, the FSA has set out a package of measures that will help to ensure that mortgage holders in arrears are treated fairly. The proposals apply to lenders but will be of interest to all firms active in the mortgage market.

The key proposals

• Make plain that firms must not add early repayment charges on arrears charges and interest levied on those charges;
• Clarify that firms must not apply a monthly arrears charge where the firm and the customer have agreed an arrangement to repay the arrears;
• Compel firms to consider all options for borrowers. Repossessions should always be the last resort;
• Confirm that payments by customers in financial difficulties must first be allocated to clearing the missed monthly payments, rather than to arrears charges, which can be repaid later; and
• Oblige firms to record all arrears handling telephone calls and to keep all records for three years.

The FSA has stressed that lenders need to be in no doubt of their obligations to customers who fall behind with payments and must realise that such circumstances are not an opportunity to create further profits.

Cannon_Fodder

claretmatt wrote: »

mortgage holders in arrears are treated fairly...

That's fine, but he's not in arrears yet, which is the problem...

Snippa

From the mortgage company's POV, the mortgage is the most priority debt, as they hold a charge over your property, so can re-possess, and you can lose your home if you default. That and the council tax, gas/electric etc which can be cut off.

So if you're having trouble paying the mortgage, it may indicate a much greater problem with finanes, or it may indicate that you haven't yet taken advice, and re-structured, cut back, increased income etc. As pointed out above, if rushing to try and cut the mortgage costs is your first call, the lender is quite right to be wary of doing that. It won't help the problems overall, and it would be the wrong thing to do in terms of priorities of debt.

So I guess, for them, it's better than you've gone through the process of taking advice, of getting together a statement of income and expenses, of negotiating with other creditors (if there are any) etc, etc, and leaving things like mortgage payment holidays or IO as a last resort, once all else has failed.

For them, mabye waiting until you default is the best way to handle it. I'd be very surprised if it was the only way though. I'm sure if you go to a debt advice agency, and they write on your behalf, detailing your situation, they'd pay attention. They just might not be willing to negotiate over the phone with no statement of affairs and nothing to go on other than a customer saying I'm struggling to pay. That could mean anyhting at all.