Mortgage Problems - Bank wants money back.

sovereign

Hi,

I would love some advice as I have a big problem. Basically there has been a complete mix up on repaying mortgage on a property for the last 5 months. I had thought it was being payed as I did not look at my statements properley. It has been a genuine mistake.

I have received a letter today from the bank saying 'having reviewed matters carefully, it is clear to us the bank /customer relationship has broken down irretrievably and we believe it would be in your best interests to make alternative banking arrangements.

They have demanded the full amount back from me and have held the account on a reducing basis only.

This has been a genuine mistake and I have no problems paying the mortgage back. Is there any chance of sorting this out with the current lender or do we have to look at alternatives.

PLEASE HELP SOMEBODY.

This is freaking me out.

many thanks.

KTF

Did you set up a monthly payment when you first took out the mortgage and where was it going?

Did the bank not contact you before to ask where the payment was and what did you do then?

sovereign

yes there was but like I said I mis read my statements. They were trying to take the mortgage out but there had not been enough money so the bank charged me money.

It was a really basic silly mistake.

Ian_W

There has got to be more to this than you've posted above.

Is the lender also where you hold your current account? Either way it is normal [probably mandatory in most cases] that you complete a Direct Debit to the lender so why has this not been activated? You have no control, unless you've actually physically cancelled it, over your bank setting it up or the lender activating it for payment. I think you need to supply more info.

EDIT: Cross posted with both above.

sovereign

the problem has been the mailing address was at one other partners house and it was simply not passed on if there were letters.

sovereign

There was a direct debit etc set up. To put it simply it was our mistake. We did not check to see if there was enough money in the account and thus when the bank tried to take money out there was not enough for 5 or so months.

tomstickland

So the money could not be taken out and the letters demanding payment went to an address where there were not forwarded from?
Really you should be paying more attention on an important item like this!
I think you should write to the lender with an action plan for sorting the problem out and see if they'll take it.

sovereign

the only thing that comes to mind now is taht I ring and make an appointment with the relationship manager at the bank, take the outstanding money with them and somehow convince that it has been a mistake and it will not happen again.

Any suggestions

Ian_W

Yes, you should offer the outstanding amount in full to show good faith, after all if you didn't pay them you'll still have it, won't you?
The letter is lender speak for "we think you're taking the p1ss" and, given the circumstances, that's exactly how I'd feel in their position - wouldn't you?
Your bank may have written to you at a previous address but I find it difficult to believe the lender hasn't written to when 1 or at most 2 payments were refused by the bank. They would have written to the right address, if it is a residential mortgage, the one the loan is secured against.
You need to get it sorted quickly. It isn't simply a case of looking for another lender - this could well have trashed your credit record making that quite a bit more difficult and expensive.

sovereign

no lies have been told just a complete !!!! up on our behalf.

dkny_2

Best thing to do now is to personally visit your bank and speak to the person that would normally deal with this, and maybe come to some sort of an arrangement or agreement.. Also i would pay back the missed payments for the last 5 months, you havent spent it on the january sales have you LOL only jokin

Best of luck