Advice Please - RBS making my blood boil

SuperOwls_2

A summary of my situation

• Currently have a £338k with RBS
• House just on the market at £400k
• Have just had to move abroad with my job (to save it) therefore have to pay rent in a house abroad
• I have £30k in credit card debt but manage to keep up with minimum payments ok
• Things have become very tight due to having to pay mortgage and rent while abroad.

I spoke to RBS this morning to tell them that i was having difficulties or could be in keeping up my Mortgate payments. I went through all my outgoings with them and they could see that things were a struggle.

I asked if they could convert my Repayment Mortgate to an Interest Only which would free up approx £600 a month which would make things more manageable in the short term until the house sells.

All they offered me was a 1 month grace default period where they wouldnt reposess my house! This will not be a 1 month payment holiday and will show as a missed payment on my mortgage.

I had a bit of a row with the bank representative as he kept saying that is all they can do to help, and quite frankly i didnt agree with the word help as in my opinion there is none.

So my question is, why are they being so tight about it? How is it harming the Bank if i continue to pay the interest? Are they testing me to see if i really am struggling and will offer Interest Only if i do default?

Any advice would be gratefully received.

Honestly my blood is boiling, these banks (especially RBS) get bailed out and this is what they offer a customer who has never been late with a payment for anything in 15 years of banking with them!

Burridge60

Most big lenders are doing this now. They have security for their loan and your £30,000 credit card debt is unsecured. Another big lender told one of my clients that she had to come to an arrangement with her loan providers and two credit cards before they would even consider interest only.

You should talk to a debt advisor as soon as possible and this site has some recommendations of where to go and not be stung for exorbitant fees.

SuperOwls_2

Burridge60 wrote: »

Most big lenders are doing this now. They have security for their loan and your £30,000 credit card debt is unsecured. Another big lender told one of my clients that she had to come to an arrangement with her loan providers and two credit cards before they would even consider interest only.

You should talk to a debt advisor as soon as possible and this site has some recommendations of where to go and not be stung for exorbitant fees.

But i dont think i need a debt advisor. Once this house is sold then the debt is paid off. Cant understand why the banks wont give interest only, i dont see what harm it does to them?

Leon_W

It does no harm to them.

They just want to make life difficult and trash your credit rating. There is wide scope for switching to interest only if the situation warrants it.

I would suggest a study of the Council of Mortgage Lenders site www.cml.org.uk which has guidance on this matter. It might get them thinking more clearly if you mention that they have to TREAT CUSTOMERS FAIRLY and that you can ultimately take your complaint to the FOS.

I genuinely wish you luck as these bandits will do nothing to help you in, from what I can make of it, making a pretty sensible decision to switch to interest only until the house is sold.

Regards

beecher2

Would they allow you to extend the term of the mortgage, and would it make much difference to your payments if you did so? Is it worth phoning them back and asking if there are any other options available to you? It does seem a pretty harsh judgement when you've moved country, and are selling up.

SuperOwls_2

beecher2 wrote: »

Would they allow you to extend the term of the mortgage, and would it make much difference to your payments if you did so? Is it worth phoning them back and asking if there are any other options available to you? It does seem a pretty harsh judgement when you've moved country, and are selling up.

I asked on multiple occasions if there were any other options and the answer was 'we've give you the only option'.

I actually feel sorry for the people who work in the Mortgage centres as its clearly a case of 'COMPUTER SAYS NO' and the people working get all the abuse from excellent customers. Unreal the way these banks treat people, makes a very unreligious person start to believe as I think we have uncovered the Devil!!

zppp

I think that you need to get debt advice and pronto. If RBS have gone though your income and expenditure with you, and they agree that things are a struggle, then you almost certainly need to get advice, even if that is only in relation to your unsecured creditors.

www.nationaldebtline.co.uk

Bullfighter

Currently have a £338k with RBS
House just on the market at £400k


I think I see a solution.

Sell house for £338k.... mortgage problems gone.

SuperOwls_2

Bullfighter wrote: »

Currently have a £338k with RBS
House just on the market at £400k


I think I see a solution.

Sell house for £338k.... mortgage problems gone.

Now why didnt i think of that, Want to buy it?

richards123

RBS - the other side of them - in the process of remortaging and going to RBS and they have been fantastic in coming up with a deal or more to the point multiples on earnings that brokers would find it difficult to match. IMO banks turn into monsters when the sums don't add up ( in the banks favour)

mjm3346

Bullfighter wrote: »

Currently have a £338k with RBS
House just on the market at £400k


I think I see a solution.

Sell house for £338k.... mortgage problems gone.

I think I see a solution

Read the post before replying.



From OP

I asked if they could convert my Repayment Mortgate to an Interest Only which would free up approx £600 a month which would make things more manageable in the short term until the house sells