help needed urgently

Golemsgirlfriend

I am in a state of shock. My husband, who was recently made redundant and suffers from Parkinson's disease and deafness, has received a letter this morning from his mother's solicitor accusing him of fraud.

He bought a house 23 years ago with his mother and paid the mortgage until he moved in with me a few years ago. His brother has always lived in the house and although he worked full time paid nothing toward the mortgage. My husband had an endowment mortgage and when he got made redundant he needed to change the mortgage to a repayment one. We did not think we could change it because his mother's name is on the mortgage too. However the Halifax told us that because his mother was over 65 he could change the mortgage without her concent. He has now received a letter from his mother's solicitor saying that he fraudulently told the Halifax that he had her permission to do so. The solicitor says he has transcripts of the telephone conversation. We are shocked.... what can we do?

Thrugelmir

Accused of fraud in what context?

You say switched to a repayment mortgage. So did your husband cash in the endowment policy?

I assume if the property was purchased 23 years ago then the mortgage will shortly require full settlement.

Golemsgirlfriend

Yes he cashed in the endowment policy because we did not have any money to pay our rent, food bills etc plus we couldn't keep up with repayments. The solicitor says that we fraudulently told the Halifax that we had his mother's permission to change the mortgage from endowment to repayment. Whereas they told him they didn't need his mothers permission because she is over 65. The mortgage only had a few years to run but now has an extra 10 years added.

Wh05apk

I would speak to a solictor, this could potentially blow up to something massive.

Personally I would not discuss something this serious on a board full of "experts" who really have no idea.

dancingfairy

From what I can understand the situation is as follows:
your OH and his mother buy a house - and I guess share the deposit? your OH is responsible for paying the mortgage? on his own or jointly?
Halifax told you you could change the mortgage over without her consent -now this appears to be the sticking point - have you any proof that Halifax said this - do you have it in writing? You really need to get legal advice to find out if this was correct advice or not. If it was allowed then it is o.k - if not then I guess his mothers solicitor can claim from him and he would have to claim from the Halifax to prove they misled him/misadvised him.
Halifax should have records of the calls to clarify what was said and by whom - which is what you need.
I would head to the Citizens Advice Bureau for some help on this one and hopefully they can point you in the direction of a lawyer/solicitor.
What paperwork have you had from the mothers solicitor - is it a threatening letter? is it asking for an explanation? have you received court paperwork or what?

df

Golemsgirlfriend

My husband asked his mother to sell up and split the profits half and half but she refuses to do so. However she still expects my husband to pay the mortgage although her other son lives in the house with her and does not pay a penny. My husband cannot work because he has parkinson's disease. The mortgage now for her 3 bedroomed detached bungalow is £279.00 per month whereas we have to pay £312 per month for a one bedroomed housing association disabled flat.

Thrugelmir

Wh05apk wrote: »

I would speak to a solictor, this could potentially blow up to something massive.

Personally I would not discuss something this serious on a board full of "experts" who really have no idea.

Concur totally. As I doubt the Halifax offered advice merely answered questions put to them.

dancingfairy

Cashing in the endowment was probably not the wisest of options at that point - was he advised to do this by the Halifax or was this his decision? as this is also relevant He should have sought specialist advice at this stage really. It depends also on who he received advice from at the Halifax - if it was somebody qualified to advise on these things or whether it was someone who was only allowed to process the paperwork and not qualified to 'advise or suggest' he cash in his endowment.
df

Golemsgirlfriend

thanks for your help, I'll get legal advice

GMS

Have to agree 100% with Wh05apk on this.

This forum is not the place to seek legal advice on a matter like this.

Speak to a solicitor asap

silvercar

However the Halifax told us that because his mother was over 65 he could change the mortgage without her concent.

So what is the problem? The telephone transcripts will prove this.

Yes he cashed in the endowment policy because we did not have any money to pay our rent, food bills etc plus we couldn't keep up with repayments.

Is this the real issue? Was the endowment in joint names? Was it cashed without the mother's consent? Did she receive any share of the proceeds?