Mortgage company changed their minds. Help needed please!

monkey68

Santander agreed to release the credit facility on my mortgage so I will be able to make up the shortfall on my mortgage. I received a letter on 3rd June saying they were doing this. 4th June I received another letter saying they'd changed their minds and were sorry for the inconvenience!!! Can they do this and where do I stand?

My background story is me and my husband are now divorced, mortgage in joint names, written into divorce that I will keep up mortgage repayments even though his name is on the mortgage still.

Alliance & Leicester (Santander) allowed us to go interest only for 16mths, June is my last month. Then it goes back up to repayment.
At the mo, DWP pay - £228. I pay £178. Which will then leave a shortfall of £379. Payment in July will be £788.
Outstanding mortgage is approx £95k with 13yrs to go.
Proterty is worth about £195K.

I have £3,459 credit on the mortgage and they agreed to send me a cheque for this amount which would cover the shortfall for 9 mths. And after paying the mortgage in full for 12mths I would then be able to look at other options which would hopefully bring the payments down to under £500 per month which is affordable.

At the moment I am not working but am actively seeking work, I have 2 daughters who are 3 & 7, which makes things a little difficult.

Any advice on this will be greatly apreciated as I feel I'm hitting my head against brick walls. I've tried to forward plan and thought of selling up, part buy/part rent - but I can't do this. If I sell the 50% equity I will receive will be lost in rent if this is my only option, and my benefits will be stopped, but as I said I'm looking for work.

Thank you in advance.

Thrugelmir

When you say credit of £3,459 could you expand a little.

Sounds like you are merely borrowing from Santander to pay them back. So kicking the can down the road so to speak. What's going to happen in 9 months time.......

Lenders have an increasing responsibility for their customers. Without concrete plans in plan Santander will be concerned that you are are only going to end up in further financial distress.

monkey68

We paid a chunk off our mortgage this is where the credit has come from.
I have the facilities to pay 3mths at full rate. Hoping that then I will be able to get a mortgage and extend the term so I can afford it.

Do you know what options are available to me if they still decided after my phonecall tomorrow to not release the credit?

javorb

santander are not interested in current customers ,they are only interested in first time government backed buyers!
i spoke to one of their advisors tonight who basically admitted they dont want to help existing customers

monkey68

I've spoken to Santender today after a 1.5hr conversation, and we have agreed on a term extension which is something they said they couldn't offer me until I'd paid my mortgage at full repayment rate for 12 mths. But apparently their conditions have changed. Fingers crossed the phonecall on Friday will be positive.

Thrugelmir

javorb wrote: »

santander are not interested in current customers ,they are only interested in first time government backed buyers!
i spoke to one of their advisors tonight who basically admitted they dont want to help existing customers

This is a little more complex than simply not "wanting" this customer.

kingstreet

javorb wrote: »

they are only interested in first time government backed buyers

That's amazing, considering they never accepted shared equity, nor FirstBuy and don't accept Help To Buy.

That's a big part of that target market of theirs they are turning their back on?

Thrugelmir

kingstreet wrote: »

That's a big part of that target market of theirs they are turning their back on?

Santander are on the record as saying their future lies in a shift to SME lending. Better margins with less capital required. The hey days of mortgage lending are past.

javorb

kingstreet wrote: »

That's amazing, considering they never accepted shared equity, nor FirstBuy and don't accept Help To Buy.

That's a big part of that target market of theirs they are turning their back on?

cheap money from the boe and backed by the government that is why ,no point in risking their own money if our government are backing first time buyers.