Mortgage Problems - can they cancel it?

FlowBlow

To cut an incredibly long story short I've been arguing with my mortgage company for some time now about our rate. Anyway, they refuse to speak to me anymore about this and will only tell me if I'm not happy I should go to the ombudsman.

But here's the issue. I am concerned that if I take this further then the mortgage company could simply end up telling me that they'll no longer provide me with a mortgage and there's no possibility of me getting a mortgage with another company!

[I should point out here that we've never missed a payment in 10 years or so; the problem is that I live overseas and due to continual moving can't provide the right tax returns and paperwork for a new mortgage in the UK; this original one was self-certified many years ago which I understand they no longer provide.]

Can they simply cancel the mortgage in which case the only option I'd have is to sell the house to pay up what we owe?

Jimbo1976

It might be useful to tell us what you have been arguing about precisely. ie what's wrong with your rate?

If you have complained to your lender and they have not resolved your complaint your next step is to take it to the Financial Ombudsman Service where they will look at independently for you.

I am sure if you gave the wise people on MSE the details of your complaint they would give you an indication as to whether your complaint has a chance of being upheld.

If you do take it further your lender cannot withdraw your mortgage if you have satisfied all the original terms and conditions (the main one being paying it!)

molerat

They cannot simply cancel the mortgage unless there is a serious breach of the t&cs and it would have to go to court. The ombudsman would simply review the evidence and decide who it considers correct in the argument.

Conrad

You can't haggle a rate. A sophisticated economy would fail if such ad - hoc dealing were permissible.

If your'e really peaved with your current deal, sell up and put the cash into an ISA or something maybe.

FlowBlow

Conrad wrote: »

You can't haggle a rate. A sophisticated economy would fail if such ad - hoc dealing were permissible.

It wasn't haggling, Conrad. Due to genuine errors on both sides (us and the mortgage company) our consent to lease form wasn't renewed and now they raised the mortgage because we don't have a valid CTL form and they refuse to send me one either. It's not much, but over the next few years that will mount up.

Thrugelmir

FlowBlow wrote: »

our consent to lease form wasn't renewed and now they raised the mortgage because we don't have a valid CTL form and they refuse to send me one either. It's not much, but over the next few years that will mount up.

The lender is totally within their rights to do so. CTL is at the discretion of the lender.

The additional interest charge can be levied. Failure to pay will result in arrears and ultimately repossession. Resulting in a forced sale of the property at your expense.

Also would impact your UK credit file.

Typhoon2000

Yes the lender does not have to give you concent to let. Indeed letting the property without permission may well be a reason where they can call in the mortgage.

Thrugelmir

Typhoon2000 wrote: »

Indeed letting the property without permission may well be a reason where they can call in the mortgage.

Good call.

Also omitted earlier to say insurance on the property would be void without lenders permission to let.

FlowBlow

For a time we had CTL but then it just wasn't renewed. They didn't send us reminders and we didn't contact them and assumed (wrongly) that the CTL was still in place. We have insurance based on renting the property out though.

They *know* we rent the property out now (and have done for the past few years) since we've explicitly told them. Do you reckon the best approach is to keep paying the mortgage, swallow the increase and keep quiet or to kick up a fuss about the CTL?

The problem is at the moment that they won't send us anything to do with the CTL and just keep saying that we should contact the ombudsman if we even want to talk to them.

Thrugelmir

FlowBlow wrote: »

For a time we had CTL but then it just wasn't renewed. They didn't send us reminders and we didn't contact them and assumed (wrongly) that the CTL was still in place. We have insurance based on renting the property out though.

They *know* we rent the property out now (and have done for the past few years) since we've explicitly told them. Do you reckon the best approach is to keep paying the mortgage, swallow the increase and keep quiet or to kick up a fuss about the CTL?

The problem is at the moment that they won't send us anything to do with the CTL and just keep saying that we should contact the ombudsman if we even want to talk to them.

Problem you face is that your insurance is void as its in breach of the policy conditions. Obtaining written consent, is a standard clause. So the risk is entirely yours.

FlowBlow

Thrugelmir wrote: »

Problem you face is that your insurance is void as its in breach of the policy conditions. Obtaining written consent, is a standard clause. So the risk is entirely yours.

How sure are you of that? There's not a single word in our insurance docs about the mortgage.