We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Halifax demanding proof we can pay off mortgage AGAIN
Comments
-
Thrugelmir wrote: »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.
Do you never tire of posting such nonsense.
Give it a rest old fruit.
Borrowers with an existing mortgage in place are under no obligation to jump through hoops proving the same information over and over again to satisfy lenders newly found nosiness.
There is precisely zero chance any lender will act to try and prematurely end a loan so long as the mortgage is being paid on time, their risk is effectively nil given the equity levels involved in these two-decade-old originations, and if they tried to impose new conditions not in the original agreement they'd likely find themselves on the wrong end of a stiff reprimand from the ombudsman.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
pootle1972 wrote: »Because why should i have to? I have proved to them we can pay so why keep asking.
Exactly right.
And you don't have to.
Provided you continue to pay the mortgage on time, they have little recourse.
I do feel it is not unreasonable for a lender to ask once, 5-7 years before repayment is due, what your plans are. As if you are in the tiny, tiny, minority that don't have any, this gives you time to sort our your options for payment or sale.
But if you provide a satisfactory answer and proof of repayment ability, it is entirely unreasonable for them to expect you to jump through hoops yearly when nothing has changed.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.
That is incorrect.
The lender has signed a contract to provide a loan for X number of years under X terms.
They have no power whatsoever to vary those terms, provided the borrower continues to pay on time.
Unless the requirement to provide updated yearly statements of repayment plans is in the mortgage contract, and I've never seen one yet that is, the lender can jog on.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
I am not convinced by all of this. I would agree they are protecting their own interests. But it is more to cover their backsides from allegations that they missold Interest Only mortgages and to show that they are proactive about preventing issues arising. I would use a slightly less blunt letter than Hamish and just tell them that the reply of last year still stands and send the same every year.Thrugelmir wrote: »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.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
I am not convinced by all of this. I would agree they are protecting their own interests. But it is more to cover their backsides from allegations that they missold Interest Only mortgages and to show that they are proactive about preventing issues arising. I would use a slightly less blunt letter than Hamish and just tell them that the reply of last year still stands and send the same every year.
isn't this what the OP is being asked to do ?
his objection seems to be the fact they are writing to him every year ,
if he reply's as you have said above , why not put the required proof in with the letter at the same time, refusing to do so could start alarm bells ringing, and the next letter will be a request to make an appointment to discuss his IO final payment problem
we all know lenders will try anything to get folk off IO mortgages,
why make a simple request into a major issue , especially as he hasn't got a problem in the first place other then he doesn't like his mortgage lender sending him mail asking the same questions once a year ,
send um what they need , move on, get on with your life until next year,0 -
At the end of a mortgage, people keep complaining that 'nobody told me my endowment policy wouldn't pay off my mortgage in full'.
So the lender is trying to avoid that type of situation, by enquiring every year, what the current situation is.
Note that I said enquiring - I doubt if they are demanding anything.
The OP can provide the information or not, but what they won't be able to do is plead ignorance if the policy doesn't pay off the mortgage in a few years time. Halifax are trying their best to start a dialogue.Early retired - 18th December 2014
If your dreams don't scare you, they're not big enough0 -
Halifax mortgage offers used to be worded in a way that treated interest only as a concession and reserved the right to switch to a repayment mortgage at any time.They have no power whatsoever to vary those terms, provided the borrower continues to pay on time.
While I agree that the request to supply the same information again is overkill the OP may be best to supply the information again along with a complaint and a request for a compensation payment. £50 might be on the table for this if it's played well.0 -
opinions4u wrote: »While I agree that the request to supply the same information again is overkill the OP may be best to supply the information again along with a complaint and a request for a compensation payment. £50 might be on the table for this if it's played well.
Not a bad idea.“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
They are asking for proof all over again. Hamish is right, their rights are limited. They can ask for all the appointments they like, they can be ignored.witchy1066 wrote: »isn't this what the OP is being asked to do ?
his objection seems to be the fact they are writing to him every year ,
if he reply's as you have said above , why not put the required proof in with the letter at the same time, refusing to do so could start alarm bells ringing, and the next letter will be a request to make an appointment to discuss his IO final payment problem
we all know lenders will try anything to get folk off IO mortgages,
why make a simple request into a major issue , especially as he hasn't got a problem in the first place other then he doesn't like his mortgage lender sending him mail asking the same questions once a year ,
send um what they need , move on, get on with your life until next year,
Personally I would not go proving anything above once - after that I would tell them 'same as last year' on your principle of getting on with life. People are too compliant with backside covering 'computer says no' bureaucracy. I say stuff them.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
Personally I would not go proving anything above once - after that I would tell them 'same as last year' on your principle of getting on with life. People are too compliant with backside covering 'computer says no' bureaucracy. I say stuff them.
:T
Quite right too...“The great enemy of the truth is very often not the lie – deliberate, contrived, and dishonest – but the myth, persistent, persuasive, and unrealistic.
Belief in myths allows the comfort of opinion without the discomfort of thought.”
-- President John F. Kennedy”0 -
But it is more to cover their backsides from allegations that they missold Interest Only mortgages and to show that they are proactive about preventing issues arising.
To protect their backsides as you put it. It wouldn't require annual reminders. There is an issue however with the number of people with no proper plan to repay their interest only mortgages. All part of lenders acting more responsibly.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.6K Banking & Borrowing
- 254.5K Reduce Debt & Boost Income
- 455.5K Spending & Discounts
- 247.5K Work, Benefits & Business
- 604.3K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.8K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards