Halifax demanding proof we can pay off mortgage AGAIN

HAMISH_MCTAVISH

pootle1972 wrote: »

I think the next step is to ask the Halifax where in my original mortgage papers does it state i will have to prove to the bank i can pay years before the term is up. If it does i will have to smile and jump through hoops when they whistle. if it doesn't then i think last years statements will be the first and last they will receive.

The first step should be for you to read them yourself, and ensure it doesn't (and it almost certainly won't), just for your peace of mind.

Then be polite but firm when dealing with lenders.

ILW

I would suspect the lender is just trying to cover themselves. Since to PPI "misselling" thing they do not want to find themselves liable for their customers stupidity and dishonesty. At least half the people who have claimed compo for PPI knew exactly what they had bought, but still got the compo.

brit1234

ILW wrote: »

I would suspect the lender is just trying to cover themselves. Since to PPI "misselling" thing they do not want to find themselves liable for their customers stupidity and dishonesty. At least half the people who have claimed compo for PPI knew exactly what they had bought, but still got the compo.

Yes I agree. Many many people took interest only mortgages pre credit crunch with no repayment vehicle. A letter once a year reminds the borrower to comply with the requirements. Its not harassment, its just the lander trying to get the best health loan book.

I guess people who haven't complied get a bit touchy, a kind of guilty vibe. Just get it sorted, the lender is better reminding you each year than coming to the end and you being in breach and a bad loan risk on their books.

ValHaller

brit1234 wrote: »

Yes I agree. Many many people took interest only mortgages pre credit crunch with no repayment vehicle. A letter once a year reminds the borrower to comply with the requirements. Its not harassment, its just the lander trying to get the best health loan book.

I guess people who haven't complied get a bit touchy, a kind of guilty vibe. Just get it sorted, the lender is better reminding you each year than coming to the end and you being in breach and a bad loan risk on their books.

I would agree that a letter a year is probably not harassment if it is just a reminder to make sure that the repayment vehicle is intact. But if it is a demand for the customer to complete some kind of return, then year after year, it does amount to harassment in my book.

My IO repayment plan is entirely intact and could clear everything with more than 5 years to go. I would be extremely irritated to have to give a report every year. And there is no guilt whatsoever on my part..

Dave_the_Ginger_Cat

Personally I think the questions are perfectly reasonable and it's OK if my bank asks me once a year

I'd prefer them to phrase it nicely, and make it easy for me to do, but other than that, you could spend more time arguing about than doing it

John1993_2

HAMISH_MCTAVISH wrote: »

For harassing people yearly once they've provided the required information?.

It takes an almost perverse mangling of English to count a polite lettter once a year as harassment.

Goldiegirl

A mortgage is a huge commitment.

Is it really such a big problem for a lender to ask customers to review their situation once a year to make sure their plans are on track to repay the mortgage on the expiry date.

Let's face it, there's a lot of people who bury their heads in the sand, and don't make proper provision for the repayment of an interest only mortgage.

Or would people prefer the lenders to encourage this ostrich like behaviour, but demand immediate redemption of the interest only mortgage on the expiry of the term, and if the mortgage can't be cleared in full, start possession proceedings for the property, with no dialogue whatsoever

A five minute review once a year seems a small investment in time, when it comes to your major asset and your home.

ValHaller

John1993 wrote: »

It takes an almost perverse mangling of English to count a polite lettter once a year as harassment.

It does not matter how polite the letter is, it is demanding proof that OP can settle the capital on the mortgage. It demands some work. Now that may be a reasonable request the first time. But to do the same thing a year later actually demonstrates that even a polite letter can begin to be harassment - without mangling the English Language.

It is because people like you are far too compliant that these companies think that what they are doing is acceptable.

Goldiegirl

ValHaller wrote: »

I would agree that a letter a year is probably not harassment if it is just a reminder to make sure that the repayment vehicle is intact. But if it is a demand for the customer to complete some kind of return, then year after year, it does amount to harassment in my book.

My IO repayment plan is entirely intact and could clear everything with more than 5 years to go. I would be extremely irritated to have to give a report every year. And there is no guilt whatsoever on my part..

But you are financially savvy ........ There's a lot of people out there that need a yearly reminder. And probably a lot of people who ignore a yearly reminder, and wonder why they can't clear the balance of their interest only mortgage at the end of the term.

mrginge

Analysing your debtors to understand their ability to repay those debts and therefore allowing you to make a sensible bad debt provision is a fairly standard activity for any commercial company filing a set of accounts. This is done on an annual basis.
Personally i would be very happy to see that my bank was aggressively evaluating its riskier debtors and making sure it had adequate reserves to cover any potential losses.