Mortgage Recall

dunstonh

If there are no arrears on the mortgage then the courts would not grant a repossession order.

They can cancel your overdraft but as long as you keep paying the mortgage you are safe.

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.

They cant do 1 as already mentioned. However, they can start action which could lead to 2 and 4. Its unlikely 3 would apply as you would no doubt have used your savings if you had them.

ILW

Does sound as if thety are just trying to scare you. Are you in a position to pay off the overdraft?

dolly_c

I'm not in a position to pay off the overdraft unfortunately - I'll contact them again in writing I think. I asked the CCCS for advice and their advice was to get another mortgage (not an option though because of my credit rating) and the CAB whose advice was to go bankrupt and give up my home as the banks don't make mistakes like that. I'll report back once I've heard from the risk management team. Thanks for the suggestions

beecher2

I think you should phone the risk management team before writing - you've only got 2 weeks so time is of the essence.

Wutang_2

beecher2 wrote: »

I think you should phone the risk management team before writing - you've only got 2 weeks so time is of the essence.

I agrees, CCCS last resort - get on to RBS and speaks to them abouts the OD.

getmore4less

Check the mortgage and bank account agreements carefully there may be offsetting clauses or clauses that you must not default on any other lending issued by the mortgage company allowing them to call in ALL debt.

If there are any, how these would stand up in a repo case I have no idea.

JimmyTheWig

getmore4less wrote: »

Check the mortgage and bank account agreements carefully there may be offsetting clauses or clauses that you must not default on any other lending issued by the mortgage company allowing them to call in ALL debt.

Far easier to ask them themselves what they are playing at.

It may well just be a simple mistake. E.g. someone's clicked the wrong button and printed letters for both accounts rather than just one.

Find out what they're trying to do first, then find out what you can do about it.

dolly_c

Thanks for all your comments.
Speaking with the Risk Management Team was a complete waste of time since he interrupted me constantly and reminded me I had just over a week to pay off my mortgage in full and the overdraft. He basically tried to bully / threaten me into borrowing the money to pay off the overdraft from elsewhere or they would sell the flat to pay for it since there is equity in it.
I've read my terms and conditions and there is nothing that states anything about offset and / or default. The only clause is the standard one about "your home may be repossessed if you do not keep up repayments on your mortgage. " But the point is I have kept up the repayments on my mortgage.
I don't know what to do....

JimmyTheWig

Speak to them again.
Ask them what you have done wrong.
Ask them where in the terms and conditions does it say that they are allowed to call in your mortgage.

Don't let them interrupt. Whatever they say, tell them that you will be making no further comment until they have told you the answers to the above.

silvercar

Have you exceeded your official overdraft limit?

There may be a condition in your overdraft paperwork that gives them the right to take certain actions on other borrowing if you exceed your limit.