Dazed and Confused

typical_blonde

Hiya, sorry to be such a dunce, but really could do with some help from someone who understands mortgages. I have three questions

1. We took out our mortgage (which they now say isn't a mortgage but a secured loan if you speak to one person, but a mortgage if you speak to another) in November 2006 - have noticed that a Broker Fee and a Completion fee were added to the total loan amount, is that normal?

2. We got into difficulties back in 2008, went to court and the Judge ruled that we should pay £40 pm over and above our mortgage payment to pay off arrears. Just realised that all the time we adhered to the CCJ we were being charged £50pm by mortgage company for "arrears". Surely the CCJ is an arrangement so the fee should have been waived?

3. We missed a payment in July 2011, they sent a "man" and we agreed to pay £50 on the arrears. They then have subsequently been ringing us every 3 months to make another arrangement. We have to go through the whole income/outgoings thing and in July 2012 we were browbeaten into offering £100pm off the arrears. We have kept to this agreement, even paying off more if we can. They now want me to go through the whole process of filling in forms income/outgoings etc and now (for the first time ever) want to see 3 months bank statements. I thought I read somewhere that only the Court can overturn a CCJ and that as long as you are paying the amount the Judge ordered, or more, the mortgage company cannot keep on forcing you to do the income/outgoing thingy. Is this true?

Sorry for the length of the question. Any help would be appreciated. By the way they are bullys.

R_P_W

who is the lender? How much was the mortgage for? what is the interest rate? How much are you in arrears?

Thrugelmir

1. The term mortgage relates to a legal charge placed on a property to secure the debt. The commonly used term "mortgage" is actually a loan.

A secured loan normally refers to a second loan taken out which is secured against the property also. Again by means of a legal charge.

2. Your mortgage terms and conditions will detail charges that can be applied to your mortgage account. Being in arrears will incur the lender additional administration costs. So the lender will look to recover these. The CCJ has no bearing on these charges being levied.

3. You are only committed to pay the amount as specified in the court order. Any formal amendment should be made through the court using form N245.

If you are paying £40 from the arrears and incurring £50 of charges. Then you are making no headway. There is every likelihood that you could end up losing your home. So I would recommend paying as much as you can afford to on a voluntary basis.

If you are in severe financial difficulty. Ring the National Debt Line for advice. As an alternative route may need to be considered.

typical_blonde

Thrugelmir wrote: »

1. The term mortgage relates to a legal charge placed on a property to secure the debt. The commonly used term "mortgage" is actually a loan.

A secured loan normally refers to a second loan taken out which is secured against the property also. Again by means of a legal charge.

2. Your mortgage terms and conditions will detail charges that can be applied to your mortgage account. Being in arrears will incur the lender additional administration costs. So the lender will look to recover these. The CCJ has no bearing on these charges being levied.

3. You are only committed to pay the amount as specified in the court order. Any formal amendment should be made through the court using form N245.

If you are paying £40 from the arrears and incurring £50 of charges. Then you are making no headway. There is every likelihood that you could end up losing your home. So I would recommend paying as much as you can afford to on a voluntary basis.

If you are in severe financial difficulty. Ring the National Debt Line for advice. As an alternative route may need to be considered.

Sorry I think I was being confusing. The CCJ was for £40 and they, despite it being an agreement (albeit as directed by the Judge), still imposed the £50 arrears charge.

We are now paying £100 per month, as agreed with them, privately and they have waived the £50 charge. However, they insist on going through the incomes/outgoings thing every 3 months, telling us that they have to refer it (to whom I have no idea) to see if we can continue paying £100 or if they will take us to court for possession of the house.

I need to know if they were allowed to charge the £50 (2008/2010)
when we were adhering to the terms of the CCJ, AND if they can make us go through the farce of the income/outgoing thing every 3 months to try and screw just a little more out of us. The last time I filled it in, I was told that I was spending too much on food (which I had budgeted to include haircuts, dentist, dog food and all other sundries that had no space on their stupid form.)

R_P_W

It doesnt sound like you are in a very good place financially - I do hope you get that sorted - if you are having problems please seek professional help as suggested above.

However, if you are in arrears with your mortgage it doesnt seem unreasonable to me for the lender to review your income/outgoings every three months.

Thrugelmir

typical_blonde wrote: »

Sorry I think I was being confusing. The CCJ was for £40 and they, despite it being an agreement (albeit as directed by the Judge), still imposed the £50 arrears charge.

The CCJ was for the total amount of arrears. Due to your financial situation at the time the judge ruled you could pay £40 per month.

The judges decision does not impact the contractual terms and conditions of the mortgage. So the £50 arrears charge can be levied.

In effect you will continue to build up arrears.

This is the reality of the situation.