Halifax demanding proof we can pay off mortgage AGAIN

pootle1972

Last year as we have an endowment mortgage the Halifax sent us a letter demanding proof we have plans in place to be able to meet the final repayment. we weren't happy but got everything photocopied and sent it off....well today we have received ANOTHER letter demanding proof we can pay....does anyone know if this is actually legal, its not like we haven't already sent proof. i don't want to spend the remainder of my mortgage doing this....we have equity in the house so it isn't even like they would lose money if we did default, not like we would.

anamenottaken

pootle1972 wrote: »

Last year as we have an endowment mortgage the Halifax sent us a letter demanding proof we have plans in place to be able to meet the final repayment. we weren't happy but got everything photocopied and sent it off....well today we have received ANOTHER letter demanding proof we can pay....does anyone know if this is actually legal, its not like we haven't already sent proof. i don't want to spend the remainder of my mortgage doing this....we have equity in the house so it isn't even like they would lose money if we did default, not like we would.

Has anything changed (or potentially changed in the reasonable eyes of the Halifax) to affect your ability, as defined in the proof you sent last year, to pay off your mortgage in due course?

pootle1972

Everything is the same....no job worries no missed payments nothing that in my mind would make them keep asking. we have seven years left on an interest only.

comeandgo

I did read that some companies are doing this yearly. Whats the problem, just send off the latest valuation of your endownment.

pootle1972

Because why should i have to? I have proved to them we can pay so why keep asking.

comeandgo

You could cash in your endowment, it could fall in value, as they have loaned you the money I'm afraid they call the shots.

pootle1972

I would understand if it was next year but we still have seven years to go.

witchy1066

its nothing personal , they send them out once a year to everyone in your position , which to be fair isn't unreasonable , anything can change in a year,

if you have funds to cover your loan, then you have nothing to worry about, just send them what they require,

if you haven't got the funds then they will want to discuss your options in plenty of time before your term ends

pootle1972

Sigh....what an absolute pita.

Thanks

Thrugelmir

pootle1972 wrote: »

Because why should i have to? I have proved to them we can pay so why keep asking.

The lender is protecting it's own interests. Many people are now reaching the end of their mortgage terms and not having the funds to discharge the debt.

Whether you have the equity in the property or not isn't the issue. Lenders do not want the considerable administration time and expense that goes into recovering debt. Mortgage lending isn't priced to reflect this.

Nothing to stop you spending the funds at any time. So once a year checking means that the lender can monitor the situation.

HAMISH_MCTAVISH

pootle1972 wrote: »

Sigh....what an absolute pita.

You have already provided the lender with the information they need, and are under no obligation to repeat this process whenever they feel like asking.

Send them a polite note....

Dear Lender,

I've already demonstrated to you how I intend to pay off the mortgage at the end of the term, and sent documents detailing this last year.

Nothing has changed.

I'll let you know if my circumstances change, but I will not be wasting my time sending you the same documents on a yearly basis.

Cheers

A Grown Adult.