Mortgage help - no where to go

ec1v

I took out an interest only mortgage back in 2007 through a broker and Accord mortgages. The mortgage was fixed term for 5 years, which ended 1st September 2012. My father is a joint holder in the mortgage, who does't live with me, but it was the only way I could get one back then.

He turns 70 just after Christmas, and Accord have told me that my mortgage duration is 5 years 3 months, and so in December I have to find the money to pay back the mortgage, or apply for one on my own.

As the mortgage is interest only, I still owe the full amount, and my new build property has gone down in value. I have no savings and have had the house valued at £20k less than what I owe the mortgage company.

I don't want to remortgage as I am fed up of being tied down and want to start paying off some debts (interest only mortgage is £720 per month - I could rent cheaper). I can't just give them the keys back as this affects my father too.

I've been to see a mortgage advisor who told me that I shouldn't have been sold the mortgage in the first place, as there is no repayment vehicle in place, and Accord should have known that I would be in this situation with only a 5 year 3 month interest only mortgage.

Accord don't want to know - I just want rid of this massive commitment, but don't know what I can do or where I can turn to. I've spoken to the financial ombudsman who said Accord would have 8 weeks to reply to a letter if I send them one, but Christmas is ever approaching and I'm worried what's going to happen when I don't remortgage and can't afford to pay Accord back.

I've paid Accord more than £45,000 over the past 5 years in interest alone, so they've had more than their fair share out of me. Is there anything I can say to them to get them to look at writing off any or all of the £15-£20k shortfall?

Thrugelmir

ec1v wrote: »

I've paid Accord more than £45,000 over the past 5 years in interest alone, so they've had more than their fair share out of me. Is there anything I can say to them to get them to look at writing off any or all of the £15-£20k shortfall?

I assume your plan was to cash in and take the profit on the back of an ever increasing property market. You took the risk not the bank. Hence why your father was added to the mortgage.

Whilst you have my empathy. The hard facts of the matter is that the debt needs to be repaid. Thats your issue.

ec1v

My parents divorced and I had to find somewhere to live, and trying to be sensible I decided to buy rather than rent. Whilst the mortgage was interest only, at least I could do what I wanted to the house.

As for your assumption, profit was nothing to do with buying in the first place. If my parents were still together, I would still be living at home with them.

Dave_Ham

There is no easy way to not sound patronising, but your only solution is to sell the place and then pay the difference to Accord.

They have stuck to their side and if rent is cheaper then do this and rent.

I think it unlikely your complaint would be upheld but you never know and without seeing the paperwork that is just my assumption....

I wish you well....

Simon_gloster

The last thing lenders want to do is turf you out of your own home, especially if you have been making repayments. If push came to shove the likelihood is that they would grant am extension to just YOU to remortgage away from them in say 5 years.

If you obtained the mortgage through a broker on a non advised basis then you are screwed for any compo thru Accord.

Accord have lent their money on request and the fact the property has depreciated is not their fault, thereforw in their interest and not yours is for them to give you time to gey off their books or face losing money by a forced sale.

Horrid situation but you need to act now or face renting with a possession shortfall debt over your head.