Lender demanding full repayment

Penpusher

Hi All,

I’ve just heard that an acquaintance of mine has received a demand from his lender (RBS, I think) to repay the entire outstanding sum on his mortgage by February next year. He has not received any previous communications from them regarding this.

From what I have heard he hasn’t got much in the accounts he has with them but he has never missed a mortgage payment.

As he lives in the flat above his business it’s his home as well as his livelihood that are under threat. I’ve told him to get immediate legal assistance on this but was wondering if anyone had any opinions on this. Specifically:

• Can the lender demand fully repayment if he has never defaulted on payments in the past?
• If they can, isn’t their a more humane timescale they have to follow?
• In such circumstances is it likely to be difficult to transfer his mortgage to another lender?

I’m afraid the details are a little sketchy and I haven’t had a chance to look at his contract, but any advice or suggestions would be welcome.

challengedavid

i would think theres more to the story than hes told you?

opinions4u

If it's a commercial arrangement that has come to the end of its agreed term, then yes, they can demand repayment.

I assume he posted on here himself recently. I can't find the link but the circumstances were very similar.

Thrugelmir

Is your friends mortgage coming to the end of its contractual term ? If so the full balance is due for repayment.

antrobus

opinions4u wrote: »

If it's a commercial arrangement that has come to the end of its agreed term, then yes, they can demand repayment.

I assume he posted on here himself recently. I can't find the link but the circumstances were very similar.

Similar thread here - https://forums.moneysavingexpert.com/discussion/2933494 - although the bank in question is Natwest. (But then RBS do own NatWest.)

SouthCoast

Business Debtline can be found here:

http://www.bdl.org.uk/

BYALPHAINDIA

Think alot of the lenders send out these (Computer Gen Letters) as a 'Scaretactic' eg pay up immediately!!

Or else.....

It's a traditional 'Fear' factor.

Thrugelmir

BYALPHAINDIA wrote: »

Think alot of the lenders send out these (Computer Gen Letters) as a 'Scaretactic' eg pay up immediately!!

Or else.....

It's a traditional 'Fear' factor.

Really?

Not sure that lenders would retain their banking licences for long if they did.

BYALPHAINDIA

They seem to do what they want thesedays (Just like the Gov't)

You can throw the RULE book in the bin!!

dunstonh

BYALPHAINDIA wrote: »

They seem to do what they want thesedays (Just like the Gov't)

You can throw the RULE book in the bin!!

If they are ignoring the rule book as you suggest they are then throwing it at them isnt going to matter.

The fact is that the banks cant do what they want. They have to act within the law. Its just that it is fashionable at the moment to bash the banks. Unfortunately some people with low IQs dont have the common sense to criticise the banks where they do something and not where there is no wrong doing. They just prefer to slag them off about everything.

Chances are that the OP's acquaintance has got to the end of his mortgage/loan term and was on interest only and has not made provision to clear his debt. However, we need more to go on to be sure. No doubt the OP will come back and give more information and facts.