Mortgage Madness

whits_end_lass

I need some all round advice, and I guess that someone reading this will have an option.

We first boughtn our house for 90K 12 years ago and had a repayment mortgage. Then as we had a few serious jobs that needed doing we remortgaged, foer 136 k and on the advice of a broker, had an Interest only mortgage . He didn't advise us to take out a savings plan or anything, In fact, about two years after we had the remortgage my hubby and I decided to have an ISA as a way of helping.

Well this mortgage has been passed on to different lenders, with us not knowing anything untill we have a letter from the 'new lender', advising us we dont need to do anything and that they will sort it out from their end, No charges were made, no extra was charged, so we carried on paying our mortgage as normal to he same company now for about 6 or 7 years namely Topaz .

Unfortunately, my husband fell really ill and as a result has had to give up work. Our 'intrest' is being paid for by the DWP.

Recently we have recieved a letter from Topaz, suggesting we contact them to change our mortgage to a repayment at a cost of $1500 per month.
When we contacted them we were told that they 'cant give advice' and to contact a financial advisor.
Although we explained that we could'nt probably have a mortgage with anyone now as my husband is ill and not working, however we couldn't afford to pay 1500 a month. Once again we were told, that we would have to see a financial advisor.

Any Ideas anyone??

R_P_W

When you remortgaged for what looks like significantly more than the house is worth, what was your plan for repaying the capital when you took an interest only mortgage?

Conrad

All you can do explain you cannot afford a capital repayment mortgage and that if the lender forces the issue you will have to complain to the FOS (Financial Ombudsman Scheme), and also to any Judge in any subsequent repossession hearing, on the grounds the lender has forced you into an unaffordable corner.

It's hard to say what the outcome will be because the lender might successfully argue they want to see the balance on your mortgage coming down.

Do you have any missed payments on any of your credit or mortgage in the last 6 years?