Mortgage with Bank in administration

Pyramidal_Blonde

My partner has a mortgage with a bank that is in Administration due to the Icelandic kafuffle.

His mortgage was taken out 3 years ago as a development mortgage with a 1 year time frame but due to a succession of break-ins he took up residence within two months of the mortgage commencing.

The bank, who ceased to advance any further monies in the autumn of 2008 are for every rattling his cage. They expect my partner to keep finding the money out of his own resources to get the property to a stage where it can be sold and they are continually threatening to pull the plug on him.

The bank are not aware he has been in residence for 3 years now and I wonder whether his position is in fact stronger than he perhaps thinks. In other words I wonder whether because the property is his sole place of residence, his mortgage offers him safeguards as long as he continues to pay his monthly mortgage repayments.

Would he have to challenge the bank through the Courts and if so on what basis?

Can the bank or its Administrators obtain possession as long as he continues to keep up to date with his repayments?
Thank you.

FraudBuster

If he is not in breach of the terms of his mortgage, the courts would be very reluctant to grant repossession.

More info on bankrupt Icelandic Banks:

Before the crisis, Syrian-born Halabi was thought to be worth £3bn. The bankruptcy order was made over a £56.3m loan he received from Icelandic bank Kaupthing, which also came a cropper in the downturn.
Property magazine Estates Gazette said Ernst & Young began its bankruptcy proceedings last year, in its position as joint administrator to Kaupthing. E&Y's barrister told the court this week that Halabi had not responded to their bankruptcy petition and they were not sure where he was.

Read more: http://www.thisismoney.co.uk/news/article.html?in_article_id=502231&in_page_id=2&position=moretopstories#ixzz0mIrXOALH

Conrad

Quite simply it depends on the wording of his mortgage contract.

Typically development finance has a short fixed term and lenders may foreclose where the term is exceeded.

As to what some random vikings inside a Bank will do in practice is utterly pointless speculation to be frank, unless you happen to have a hotwire tothier minds!

dimbo61

Has he finished the work on the house and can he remortgage elsewhere at a better rate long term.
If not keep paying the mortgage each month and finish any outstanding building work asap