Mortgage Express - unfortunate accident - interest only repayments??

computerad

In October 2007, a friend and I bought a house together (50/50 equity, tenants in common)- a 3 year fixed term mortgage with Mortgage Express. We have never missed a payment and they've always been on time.

About 3 weeks ago, my friend had an accident at work meaning he's not been able to work and consequently whatever sick pay he gets from this months pay packet, will not be enough to cover his bills/the mortgage.
He called Mortgage Express explaining the situation & to see if we could drop the monthly payment from Repayment to Interest Only for a couple of months until he returns to work - in an attempt to take action before we get into difficulties with repayments.

Mortgage Express were unwilling to help us & kept asking if I could cover the shortfall, which isn't financially possible.

I'm a little peeved at how unhelpful they were, and wondered, officially what our options were? Are we seriously unable to do anything to help this financially difficult period?

VIGILANT22

So no insurance in place to pay mortgage in the event of accident etc?

Quote: "wondered, officially what our options were"

Officially you have to keep to the conditions of your mortgage

computerad

Well that's the thing, I do, but he doesn't.
He's only been with his current employer for a couple of months, and thought the company had insurance in place for their employees/times like this.

So there is literally nothing we can do and we're resigned to our house being inevitably repossessed if he can't find someone to bail him out?

VIGILANT22

computerad wrote: »

Well that's the thing, I do, but he doesn't.
He's only been with his current employer for a couple of months, and thought the company had insurance in place for their employees/times like this.

So there is literally nothing we can do and we're resigned to our house being inevitably repossessed if he can't find someone to bail him out?

The mortgage was taken out in 2007, wouldn't he have arranged protection then?

Does he have no emergency fund (3 months minimum) Do you?

Repo on one missed payment is a bit extreme...however...one missed payment will have an effect on yr credit rating

dunstonh

I'm a little peeved at how unhelpful they were, and wondered, officially what our options were

They are a business, not a charity. Lenders have to treat you fairly but they dont have to act like a charity.

Would they consider a payment break for a couple of months instead?

So there is literally nothing we can do and we're resigned to our house being inevitably repossessed if he can't find someone to bail him out?

Correct. However, as long as he makes at least the interest only payment each month it is unlikely any judge would grant a repossession order. It is also unlikely the lender would even go for repossession but would choose instead to write/phone to hassle more money out you until the arrears became more serious.

With mortgage rates as low as they are and only half the mortgage needing to be found, how is it that you cant afford to cover the payments?

computerad

Well that's partly what I'm worried about. It's not my fault he didn't arrange suitable cover, but I presume it's gonna start effecting my credit rating when he can't pay his half of the mortgage.

I certainly don't have any form of savings. We bought the house about a year after I graduated, so I didn't have time to save anything substantial, whereas my friend has been working since his GCSE's and has some savings I believe?

Is there any way that I can save myself from being dragged down by his mistake? He's a really good mate, but if I'm going to try and get a mortgage in the future, I've gotta keep my credit history in tact

VIGILANT22

You can try again and ask them to reduce to interest only but in all honesty it may not be much of a saving...as dunstonh has suggested do you have the facility for payment holidays?.....

computerad

dunstonh - as I said back in my first post, we have a 3 year fixed term, started back in 2007, so the mortgage rate unfortunately isn't as low as it is with todays rates. I simply don't have an extra £350 left to put towards the mortgage...unless I don't eat anything all month & don't travel to work.

Wutang_2

Sounds to me like you need to get your mate to realise the implications and find some cash. Eg parents, other friends, borrow, do some other work - whatever it takes.

computerad

Wutang wrote: »

Sounds to me like you need to get your mate to realise the implications and find some cash. Eg parents, other friends, borrow, do some other work - whatever it takes.

...tell me about it!

JA1000

He just did