Bank Not Playing Ball!

nip9k9

Hi guys,

We are at our wits end but are trying to get something sorted before it's too late. First of all I would like to point out we are not trying to just get our mortgage wiped out or walk away. We are trying everything we can to repay our debt.

We came out of an interest only a year ago and after much to and frow the bank renewed this on a six month basis. Then again six months later. I have written numerous letters pointing out we have no endowment in place (idiots we know). They have said they will renew the interest only on a longer term basis (5 years then again after this term) however we only really see this as renting for the next 30 years.

I have asked them to consider a lower interest rate (not interest free as we accept we are partly responsible for our debt) to allow us to move on and repay with the bank still making money from it. They are not interested in this at all.

I have been told if we default three times they may consider this as it then goes to debt management who must offer a repayment plan.

Any ideas are much appreciated.

Regards

Andy

R_P_W

Sorry but have no idea what you are asking!

Maybe include some facts ?

ACG

What do you mean theyre not playing ball?

You took out an interest only mortgage, they now want paying but are extending the term because you do no have a repayment vehicle... to me that sounds like they are playing ball.

If you want a lower rate look elsewhere but you will find you will most likely have to put it on repayment.

Im not sure you how can say its partly your fault for not having a repayment vehicle.... what did you think would happen at the end of the term? Mortgage Statements coing through showing your balance was the same at the end of this year as it was the previous year?

Sorry to be quite blunt and direct, im on here to help people but sometimes things do just need to be said.

If i have it wrong i apologise but im just going off your post.

opinions4u

nip9k9 wrote: »

We are at our wits end but are trying to get something sorted before it's too late.

Are you saying you can't afford your mortgage payments?

If so, get over to the Debt-free Wannabe board. Post a statement off affairs (SOA) and take it from there.

We came out of an interest only a year ago and after much to and frow the bank renewed this on a six month basis. Then again six months later. I have written numerous letters pointing out we have no endowment in place (idiots we know). They have said they will renew the interest only on a longer term basis (5 years then again after this term) however we only really see this as renting for the next 30 years.

Cut to the chase.

1) Are you on interest only or not?
2) If you are, is this as part of some sort of debt management plan?

I have asked them to consider a lower interest rate (not interest free as we accept we are partly responsible for our debt) to allow us to move on and repay with the bank still making money from it. They are not interested in this at all.

You have a contractual rate. If you can't keep up with it your home is at risk.

I have been told if we default three times they may consider this as it then goes to debt management who must offer a repayment plan.

By who? The lender? A bloke in the pub?

3) How much is owed on the mortgage?
4) What is the contractual monthly payment?
5) How much will your arrears be at 31st May?
6) How much would the property fetch if you sold it now?

A bit more clarity on the issues will get more clarity in the answers.

ViolaLass

nip9k9 wrote: »

I have asked them to consider a lower interest rate (not interest free as we accept we are partly responsible for our debt) to allow us to move on and repay with the bank still making money from it. They are not interested in this at all.

Gosh, how reasonable of you to accept some responsibility for your debt.

maginot

Unfortunately if you are in financial difficulty or have a poor credit rating you are likely to get a higher interest rate rather than a lower interest rate. This may seem silly, as you are then even more likely to default with a higher interest. However no one would pay back debt and have a good credit rating if there was no benefit.

From the gist of your post, I take it you want to pay the same each month but on a repayment rather than interest only by getting them to reduce the interest rate.

This is not going to happen as mentioned above, the bank seem to be very supportive and are playing ball. They could be demanding you have to have a repayment vehicle rather than offering an interest only that is a bigger risk for them.

Perhaps you should be renting at the moment if you can only afford interest only as house prices could fall and leave you in more difficulties. Also, who else is responsible for your debt?