Negotiating Reduced Mortgage

dunstonh

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.

Thats your problem. If it is not your principle primary residence then it is in effect an investment property. Some lenders charge more for investment properties. Some don't even offer them. it sounds like they have shoved you on to their commercial rate for investment mortgages.

Your solicitor needs to be able to persuade them that it is your principle primary residence but you yourself admit it isnt.

pamstretched

Many thanks for the replies so far I am getting a better understanding of their actions now although I still think this is incorrect. Might have to rethink the bungalow advice.

What is a definition of primary residence?
If it's the only home and some months are spent abroad for health reasons and no other properties are owned i.e. Elderly couple not big time property dealers surely this is the primary residence?

PS. currently at home for a year as no funds to go away for the winter.

pamstretched

PS
Are we (family members) classed as tenants even if we are not paying rent

getmore4less

Definately look like a primary residence to me

AIUI there are no occupancy rules for this.

You can own a house and only use it at the weekends, lodging during ther week say for work and it would still be primary


AIUI you can as many people come and live there as long as they pay no rent and have primary residences themselves elsewhere they are just visitors.

pamstretched

Thanks
Just received a copy of their solicitors bill to be added to the mortgage.
I will try a couple more letters to them before getting into legal wranglings again which will cost hundreds no doubt.
I will request in writing why we are being charged this £300 - reasons have been verbal so far , and request another review

jamesd

pamstretched wrote: »

Council Tax, Electoral Roll, Bills etc all clearly show the same surname for the past 40 years

If it's the same full name, not merely the same surname, that would be strong evidence that the property hasn't been let, provided it's the same name as on the mortgage. Letting to family is possible and not uncommon, so simply same surname wouldn't be sufficient to prove not let.

I discussed this sort of situation myself with NatWest and their normal residential mortgages are fine for family members provided there is no assured shorthold tenancy agreement in place. While the repossession possibility implies a poor credit history a mortgage with a different lender might be possible. You'd want to fully declare the situation so they know and agree in advance.

pamstretched

ok thanks
Yes they know who the residents are in addition to the mortgage holder
I will just try all the options suggested and see how we go from there.

pamstretched

The emails have been ignored - so I presume they are not willing to negotiate on the penalty payment.
Fighting through court could cause more trouble
Also received a curt letter advising the account is in arrears again the due date is past and we have not written to change the date yet. This will be done this week hopefully

Approached the bank - too old to get a new mortgage (70's) also debt problems

Just about four years to the end so might have to just put up with it


Debtor hassles but I think I need a different post for that

jamesd

Don't rely on your bank, get a statutory credit report from the credit reference agencies and ask a mortgage broker.

Given the use by family you might also discuss with family whether any have good credit records or funds and who could set up a mortgage in their own name. NatWest is one lender that allows this where no rent is charged to he family member living in the property via an assured shorthold tenancy. A guarantor mortgage might also be possible if a family member is a suitable guarantor. These are at least some of the options that you should discuss with a mortgage broker.

It's probably worth having a word with one of the free debt advice charities if yu're having trouble with debts in general. I see you have several other discussions goin on elsewhere here, a good thing.

pamstretched

Thanks I will follow up on these ideas

Problems have been discussed with family but they have the same approach as the solicitor sell up and move on forget the stress.

Some even mentioning the equity could be used to help those in the family struggling at the moment with job cuts etc.

A slight chance if we agreed to sell to family cheap but I dare say the rent will be above market rates knowing them.