Mortgage Arrears and Tenancy problems

fletch0151

Hi all,

I'm hoping for some advice, it's a complicated one so please bare with me.

Several months ago I was having problems paying my mortgage due to renovating a new house for myself and my family. I informed my mortgage lender of this and they graciously helped me out by adding the arrears onto the end of my mortgage and giving me lower payments for a couple of months. At the same time as this phonecall I informed the lender of my intentions of moving and letting out the property and of my new forwarding address. At the time there didn't seem to be a problem and no discussion of any charges took place.

Now, I recently returned to my property to pick up several months worth of mail, which included a couple of letters from my mortgage lenders solicitors. In which they informed me that repossession proceedings were going ahead and I had a court date of 14th October 2010 unless arrangements were made to clear the arrears.

I put together a breakdown of earnings and a proposal of £50/month extra to be payed with my regular monthly repayments for which I have waited 8 days to recieve a decision on wether they would accept.

They have now replied, denying my proposal on the grounds that I cannot afford it. On closer inspection of the e-mail I sent I noticed an error in my calculation and that my income was actually higher and this is the reason why it was showing that I could not afford the payment. I promptly called the solicitor to discuss and they have asked me to amend and resend which I have done.

The main problem is that in the e-mail I recieved from them they cite that they are going ahead with the court case regardless of wether a payment plan is put in place or not, as they are now saying that I did not inform them of my intention to let the property and I did not pay the relevant fee of £100 for the privilege. They are also claiming for the missed payments for last year which were supposed to be added on to my mortgage which they conveniently don't have a record of.

I just don't know what to do.

Can I find a mortgage lender willing to transfer my mortgage over to a buy to let with arrears on my account?, is there something else I can do or is my house a goner?

Sorry that took forever

I welcome any advice

fletch0151

Bump!!!!!!

silvercar

Can you get a BTL mortgage elsewhere?

It depends on the equity in your property, the likely rental and your credit rating.

On the possession hearing, the best advice is to gather your paperwork and attend court. Hopefully when you produce the evidence that you understood you reached agreement with the lender, the judge will through out the case. Second best bet is that the lender agrees with you before court on a repayment schedule.

If it does reach the court, there is a good chance that the judge will grant a suspended possession order. This means that PROVIDED YOU KEEP TO THE NEW REPAYMENT SCHEDULE (that will have been agreed in court), you are saved from repossession. Should you default on the new payment schedule the lender will find it much easier to get possession.

Where are you living? At the very least you should get mail redirected so you don't miss anything important.

Incidentally letting you go on a BTL deal for only £100 is good value.

GMS

What is your property worth and how much do you owe on it?

How much would you need to clear the arrears and stop the repo proceedings?

I would ask the lender for a copy of the call recordings where they agreed to consent to let and the capitalisation of arrears. Put your request in writing also, and show it to the court along with all other paperwork, should the case get to court.

What can be done depends on the amount of equity, but having arrears will exclude almost all lenders.