Mortgage Recall

dolly_c

HELP!! I have a mortgage and an overdraft with the RBS. My mortgage is not in arrears and I pay it every month. Out of the blue I have just received a letter from the RBS - actually two letters in the same envelope giving me 2 weeks to pay off my overdraft and my mortgage. If I do not pay off my mortgage in less than 2 weeks they will repossess me and another list of threats. They have not followed any pre-action protocol. I think they are trying to bully me into paying off my overdraft with the threat of making me homeless. Can banks recall your mortgage on a whim if your payments are up to date? Thanks in advance for some sound advice

Wutang_2

No they can't - you sure about that?

Cannon_Fodder

Amounts involved ?
Credit history ?
Employment position ?
Age ?
Term remaining on mortgage ?
IO or Repayment ?

When taking out the mortgage, did the Lender specify that you need to clear the overdraft/any other debts, within a given time-frame ?

Do you have issues with your post delivieries ?

Anything else you might think pertinent ?

House_owner

I would think that this is most likely to be a mistake by the bank. If all your mortgage payments are up to date, they can't just recall your mortgage just like that.

Even if you were in arrears, then, these days (as far as I know) they are obliged to work with you to sort them out, not just send you a threatening letter.

Get in contact with your bank and ask them what is going on.

dolly_c

15 years to go on the mortgage, being paying it for 10, credit rating great up until a year ago then seriously downhill (not on the mortgage though - on credit cards), it's an interest only mortgage, I've called the mortgage centre to query it and they said my account had been taken over by the "risk management team" so couldn't discuss it though could confirm no arrears, there were no specific terms on the mortgage as it was taken out way before the overdraft facility was put in place, there is no paperwork which links the overdraft and the mortgage which I think is the point - that an overdraft is unsecured lending.

ILW

Overdrafts can be called in at any time.
Was there a condition on the mortgage that a repayment vehicle must be in place?

dolly_c

The fourt threats in the RBS letter are :
1. Commence legal action for an order for possession and sale of the property
2. Realise any other security held
3. Exercise our right to set off over any of your funds held elsewhere
4. Instruct agents to visit your home to recover any shortfall remaining after the other debt recovery actions have been taken.
You will be liable for the costs of any legal action.
This can't be a mistake that this and the overdraft letter were in the same envelope.

ILW

Are you sure they have not obtained a charge on your property at some time in the past?

dolly_c

I'm new to this (as in first ever time I blogged was half an hour ago!) and not sure how to thank everybody for their answers so thank you.

There was no condition on the mortgage about a repayment vehicle.

dolly_c

Absolutely positive that there is no charge on the property (not sure what a charge is though sure I would have been notified in writing and it would have arisen in discussions with my formerly friendly bank manager)

JimmyTheWig

dolly_c wrote: »

I've called the mortgage centre to query it and they said my account had been taken over by the "risk management team" so couldn't discuss it.

Ask to speak to the "risk management team". [If they say they'll get them to phone you that's fine, but ask for a timescale and chase them if you haven't heard within that timescale.]

Tell the risk management team that you believe they have made a mistake and that there is no reason for them to call in the mortgage as you have stuck to the terms.

See what they say and report back here if necessary.