Mortgage arrears

martins53

About two years ago I lost two businesses and had a period of real financial hardship which resulted in mortgage arrears of £2,600. At this time I went back to my roots as an Accountant and started my own business. Trade has gone quite well and i have not missed a payment for two years. I have been debating with the bank the best way to clear the arrears and as the house is still worth £200,000 with a mortgage of only £87000 I suggested adding the arrears to the loan. The lender the C & G has also recently written to me saying I qualify for a consolidation. I admit the arrears I am happy to pay them back over the rest of the term of the mortgage and I qualify to do this, but we have not as yet agreed a repayment amount. There has been a series of delays in answering my letters the last one taking five months for a reply and we have fallen out somewhat. They have started court proceedings to collect these arrears and this has been like a whirlwind. I still cant afford to pay the arrears in one go what can I do

Susan17

I'm having a very similar problem, tried to agree a repayment amount buy they didn't reply each time I made an offer. Now they have commenced legal proceedings !

Thrugelmir

Understandable that after 2 years your lender expects the arrears to be repaid and they've lost patience. Do you owe other unsecured debt as well?

handytips

Ok guys, you need to phone them back up. Propose a payment plan for getting the arrears paid, if they refuse your proposal (make sure it is realistic) as them to put it in writing that they have refused your offer. Then if they take you to court, you will have it on record that you have offered to pay the arrears under the terms that you have offered within your budget planner. I cannot guarantee that this will work, however it usually does, it usually does not end up at the County Court and they will accept your offer. Be calm and collected on the phone with them, ensure that you have a budget planner with you when you phone. Lastly Good Luck with your efforts and i hope everything gets sorted out.