Problems contacting mortgage provider

houseownerjosie

Hi- I am currently experiencing financial problems as a result of having two young children in childcare (almost £800 a month) and only working part time and myself and my husband are finding it difficult to pay our mortgage payments, which will only get harder until our kids are in school. We have an interest only mortgage with the One Account which we took out almost 4 years ago pre-kids on a property that needed refurbished. We carried out the work thinking the value added would become a big chunk of equity for a new repayment mortgage, but the market crashed and the house is now only worth what we paid for it, despite us sinking thousands of pounds into the refurbishment. We have had it on the market for a year with no takers. I read that the best advice is to speak to your lender to alert them to a potential problem and ask what they are able to do. However, I have tried to contact the One Account by phone but only get a call centre and no-one interested in helping or discussing my financial situation. So I then emailed them a letter outlining all of the circumstances but I have had no response. I sent a follow-up email requesting confirmation that my initial email had been received, again with no response. I contacted them through their site so I know that the email address is correct. I would be grateful for any advice on how you are meant to contact your lender if they are an internet bank and have no branch to go into or no-one on the other end of the phone who is interested in having a conversation rather than simply trying to get onto their next call. Thanks.

Thrugelmir

What do you expect your lender to do? Deferring interest will merely mean your debt will spiral out of control.

Do you have other debts in addition to your One Account?

Suggest you analyse every penny you spend and find savings. Here's a link that may help you.

http://www.makesenseofcards.com/soacalc.html

Contact the National Debt Help Line if you are in extreme difficulty.
Is a free service.

http://www.nationaldebtline.co.uk/


Finally try Citizens Advice. Though with cut backs may take a few weeks to get an appointment.

http://www.citizensadvice.org.uk/

princessdon

Are you using childcare vouchers? Does your employer allow them or your partners?

You can save tax relief upto £110 per week if both permitted them!

Sorry I know it doesn't answer your question directly - but so many people are not using them and at that value per week the question needs to be asked!

houseownerjosie

Hi- thanks for the advice, it is very helpful. I will follow the link you suggest and analyse our expenditure. We have other debts which we have been making a real effort to reduce, cutting terms on loans and paying off one credit card so far. In 3-4 years' time we will have cleared all of our loans and our childcare bill will be reduced drastically. We estimate having an additional £1,200 available each month. I had wondered if our mortgage lender would allow for a small number of missed payments or payment holidays during this time (there are only about 2 months per year where we really struggle to pay as my husband doesn't get paid properly over the holidays).

houseownerjosie

Thanks Princessdon- we are both using our full allocation- it just costs us almost £800 for two days a week for two children. Thanks for suggesting it.

Thrugelmir

houseownerjosie wrote: »

I had wondered if our mortgage lender would allow for a small number of missed payments or payment holidays during this time (there are only about 2 months per year where we really struggle to pay as my husband doesn't get paid properly over the holidays).

In all probability no. Why should the mortgage lender accept no payment while other creditors do.

That is their thinking.

Should have mentioned earlier. Try the Debt Free Wannabe board for support and advice. Good bunch of people on there. Who will provide encouragement through difficult times.

princessdon

Childcare is a killer - My youngest just went into school this year.

So much for minimum wage! After childcare some parents are lucky to get £1 an hour!

Sorry can't help more - Other than making sure you apply for your Education Grant when they reach the term after 3rd birthday.

Your childcare costs are high though - in my area the dearest childcare is £32 per day so at 2 days at week a lot less than you are paying.

houseownerjosie

We live in an area with really expensive childcare and I think our nursery has to be at the top end in the area- it shocked us when we found out how much it would cost. And they have just put the fees up! Would move to a different one if our girls didn't love it there so much. Have also applied for the funding for our three year-old which will kick in from August and hopefully make things easier. Thanks again.

Thrugelmir

houseownerjosie wrote: »

Would move to a different one if our girls didn't love it there so much.

Change your mindset.

You can't expect a lender to help you. Until you help yourselves.

Be miserly if necessary.

What counts most is a stable home. Everything else is a bonus.