Negotiating Reduced Mortgage

pamstretched

Following a near miss eviction the mortgage company's solicitors have written offering to "negotiate" so we can get back on good terms. Mortgage arrears are clear and payments upto date.

On the first repossession a penalty £300 per month was added to the mortgage. Any arguements over this were met with eviction threats --- so it was agreed by bullying. Unfortunately they now seem to feel its set in stone.

I am trying to negotiate for this to be removed.
The first request has been responded to. Their solicitors underline that this is now the mortgage and cannot be reduced. They have only offered to change the date to assist prompt payments

I need to challenge this but tip toe to a solutions as we don't want to end up with another eviction notice.

Any suggestions would be appreciated

Thanks

Thrugelmir

What was the £300 penalty per month in respect of?

pamstretched

The mortgage company's solicitor said they conducted an "investigation" and found the property was not being used as a residential home but rented out. The house was actually empty at the time (abroad).

All utility bills, council tax and electoral roll details and mails are our family name throughout so we have no idea what this evidence is. There are no rental incomes on any bank accounts or visitors staying any length of time so it's a mystery.
They increased the mortgage as a penalty for letting without permission. I informed them this was a family home only (and has never been let) but this was ignored.

They basically pulled a fast one adding the new figure just before the eviction so it did not show as a penalty just an increase with no explaination.
This discussion took place at the point of eviction.

The mortgage was in effect doubled overnight. We had the choice of agreeing or leaving the property. I foolishly just agreed to everything so the house would not be lost believing we could sort it out later but they have refused to discuss it since then.

We are trying to get their solicitors to re-look at the situation. They seem adamant this is now the mortgage due and will not be changed. It currently works out an extra £3,600 per year. If we are late or miss a payment we are advised to make preparations to leave!

I am just trying to put a case for changing payment and any advice would be helpful

Thrugelmir

I suggest you write to the mortgage company. Saying that you will be taking legal advice as they have been unable to substiante the claims made and therefore the charges made are unfounded.

Consult a solicitor yourselves.

pamstretched

We are intending to now negotiate through a solicitor and are currently putting papers together. eg.

Original Contract (if I can find it)
Latest Statement (which states the mortgage is £500 per month)
Payments made
(Maybe bills and electoral roll copy)
Any other suggestions

Just seeing if anyone has any ideas about who can legally be classed as a tenant
Solicitors we spoke to said ANYONE not on the mortgage including the Spouse, Children, Grandchildren, other relatives friends etc -even if they are not paying rent Which seems wrong

Already gone the legal route...
The first solicitor said this is correct
The second solicitor insisted this was too much stress at such an age and roughly insisted all should be sold up and a fresh start be made - in a bungalow.

cabbage

is it because they think you have a buy to let mortgage and are penalising you for it with a higher rate?

pamstretched

It was purchased for a family (parents and five children) the family has grown and we all stay here at some point but do not officially live here.

It is a residential mortgage
When first retired a few months a year were spent abroad for health/retirement (they knew about this)
During these periods the house is looked after by relatives or neighbours
No rent is received and no non-family member actually stays overnight here

They insist any family member not named on the mortgage can be treated as a tenant this include Spouse, children, grandchildren.

pamstretched

We were accused of renting out the house but have always denied this.
There has never even been a lodger.
It just seems to be some jobsworth has decided if we are abroad it must be let.
Council Tax, Electoral Roll, Bills etc all clearly show the same surname for the past 40 years

Moglet

Sounds like the mortgage company are half correct and it's not your primary residence but more like a 2nd home. I understand you're allowed as many residential mortgages as your income can support.

What do they say to it being a 2nd home?

SouthCoast

They insist any family member not named on the mortgage can be treated as a tenant this include Spouse, children, grandchildren.

What does the mortgage deed that you signed say on this issue?

pamstretched

There is only one mortgage. Our relatives put us up abroad or we rented at local rates 3-6mths at a time. I was not aware this was not allowed. This is the primary residence.

Have not found the original contract yet - its somewhere here so I'll find it eventually.
They did not say anything about a second home just that it was being let out without permission.

Thanks