RBS/Virgin One Flexible mortgage demands

Betty53

I took out a Virgin One account mortgage nearly 8 years ago and - due to financial/family/personal problems and being forced to move into self-employment - have not been able to keep to the suggested repayment plan. In other words, my mortgage borrowing has not substantially reduced during those 8 years.

And, I have been unable to remortgage because I also have outstanding credit card debt - for the same reasons. However, I have always kept up with all my repayments on everything... and paid a bit extra off as well, where I could.

Over the years, at annual reviews, I have explained my circumstances to Virgin One and was told that this was not a problem and I could repay my mortgage when I sold the property. This was always my intention as soon as my circumstances would allow me to do so. I was aiming for 2014.

However, last October, someone phoned from RBS and told me that they would be reducing my facility by £1 and that I must pay £14,000 off the balance by October 2013 - this year. When I expressed dismay (understatement) about pulling together that amount of money in such a short time, his helpful remark was, "You'll have to hope you win the lottery".

I realise that I have been walking a financial tightrope for some years... albeit trying to do the best I could in a bad situation... and am now being called to account but wonder about my right to ask for more time to pay?

After desperately trying to find an extra £1500 per month to reduce the balance - with some limited success - I have just admitted defeat and have just put my house on the market.

I hope to sell quickly (don't we all?) but - if there is a delay and I can't complete and repay by October - can I ask RBS/Virgin One for more time?

And, when should I make them aware that I am having problems?

It almost seems as if they don't want to discuss anything until I have got to the point where I simply can't pay! Whereas I would like to discuss/explore contingency plans. Am I being naive?

Any help gratefully received.

MallyGirl

I had a call a while back from VirginOne asking if they could reduce my facility. I wasn't using it all at the time but I had plans to in the future for an extension so I said No. They said OK and went away - they weren't happy as it meant they had to have cash deposited somewhere to meet my facility just in case I used it but they accepted it.
My situation is different to yours as I am ahead of plan but still.
If you have a flexible mortgage but still have credit card debt then you haven't been using the mortgage in the right way to make the best out of it. If you can't meet the payments and haven't really paid off much in 8 years then maybe it is time to move to a property you can afford.
VirginOne aren't taking new customers any more so are probably looking to get rid of 'bad debt'.

Billypc02

Betty53 wrote: »

I took out a Virgin One account mortgage nearly 8 years ago and - due to financial/family/personal problems and being forced to move into self-employment - have not been able to keep to the suggested repayment plan. In other words, my mortgage borrowing has not substantially reduced during those 8 years.

And, I have been unable to remortgage because I also have outstanding credit card debt - for the same reasons. However, I have always kept up with all my repayments on everything... and paid a bit extra off as well, where I could.

Over the years, at annual reviews, I have explained my circumstances to Virgin One and was told that this was not a problem and I could repay my mortgage when I sold the property. This was always my intention as soon as my circumstances would allow me to do so. I was aiming for 2014.

However, last October, someone phoned from RBS and told me that they would be reducing my facility by £1 and that I must pay £14,000 off the balance by October 2013 - this year. When I expressed dismay (understatement) about pulling together that amount of money in such a short time, his helpful remark was, "You'll have to hope you win the lottery".

I realise that I have been walking a financial tightrope for some years... albeit trying to do the best I could in a bad situation... and am now being called to account but wonder about my right to ask for more time to pay?

After desperately trying to find an extra £1500 per month to reduce the balance - with some limited success - I have just admitted defeat and have just put my house on the market.

I hope to sell quickly (don't we all?) but - if there is a delay and I can't complete and repay by October - can I ask RBS/Virgin One for more time?

And, when should I make them aware that I am having problems?

It almost seems as if they don't want to discuss anything until I have got to the point where I simply can't pay! Whereas I would like to discuss/explore contingency plans. Am I being naive?

Any help gratefully received.

Hi. I have a one account mortgage as well and like you I am behind on the repayment guide they have provided. However I have never gone over my facility so I have always assumed that they can not force you to pay what you are behind on. It always says that as long as you repay your borrowings by the time your mortgage ends they will be happy. Are you over you facility? And how far behind are you on your repayment guide? I have not had any contact with them so I am worried now that I may get a similar phone call!!! I always pay the interest so don't know if that's why I have not heard from them. Four years ago I was £10,000 ahead of my repayment guide and currently I'm £14,000 behind. We are due a policy in 2 years and that will be paid in so we will probably be back on target then. My annual review is due in October 2013 hope they don't recall my facility!!!

Thrugelmir

Betty53 wrote: »

Whereas I would like to discuss/explore contingency plans. Am I being naive?

Any help gratefully received.

I'm sure they'll be flexible if you are actively marketing the property, along with continuing to reduce the balance. Your overall financial position is not their concern. If as you say you've been walking a financial tightrope. Perhaps it's the prod you have needed to tackle the issues head on. Rather than let them drag on unresolved.

Betty53

Thanks for your reply, Billy. Chiefly because it's good to know that other people are/were under the same impression about the One Account: that so long as the debt is repaid by the end of the term (or when you sell the property), everything is okay. Obviously not - in my case, at least!

I might be under pressure because I owe more money all round...

Betty53

Thanks to everyone who responded, actually... I appreciate it.

Betty53

Mally - you said that you told them "No" when they asked to reduce your facility.

Could I have said that, too?

I wasn't over my limit just behind in my repayment plan.