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Refused interest only payments - Repossession looking imminent
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garythephotoman
Posts: 13 Forumite

Hi All,
I appreciate this is a busy time, but any advice is more than welcome.
I will try to be brief and concise;
I purchased a property with my partner just over 12 months ago. We took out a joint repayment mortgage with Britannia on a 20 year term which will take me up to the age of 69. Last 6 months have been a bit rough between us and partner moved out 6 weeks ago to move in a council house. All is amicable even though she is not contributing any way towards mortgage payments which are £850 per month and she can not afford to do so.
The assumption was between us that we would inform the building society of the situation and I would go to interest only payment while the house was on the market, which I will be doing right after xmas. We both went to see a Britannia adviser last month who did all the paperwork and sent to Head office. I was made aware that it was not his decision to make.
Early December we received a letter from Britannia HO asking for pay slips and personal bank statements which I had previously shown to the advisor in the branch. Anyway, we duly sent these off as requested. I should add that none of us have bad credit history, debts, late payment history etc.
I had a phone call this morning from Britannia Collections dept who say they could not offer interest only payments as the company have now made it policy to withdraw this facility to anyone in financial hardship. When I asked, 'when this was made policy', I was told the 9th December 2013... which just happened to be the day they wrote to me asking for further details and after they had been sitting on my application for approx 2 weeks!! No further financial assistance could be given even though I stated I would not be able to afford the mortgage payment and it would force me to go into arrears and start the repossession procedure.... Extending the mortgage term is not an option as I am already max'd out.
Furthermore, I contacted the branch advisor today to ask why he suggested this option to me. He made some enquiries and and got back to me saying, he and his colleagues and not been made aware of this policy and were still actually proposing it to other customers who were in a similar position. He did confirm that he had contacted his Head Office today to check, and in doing so was made aware that the interest only policy had now been removed.
I do not feel that my complaint will not get anywhere and am quite concerned about being repossessed and blacklisted. My plan was to sell and purchase a smaller property but looking very bleak now.
Any advice?
Thank you in advance.
I appreciate this is a busy time, but any advice is more than welcome.
I will try to be brief and concise;
I purchased a property with my partner just over 12 months ago. We took out a joint repayment mortgage with Britannia on a 20 year term which will take me up to the age of 69. Last 6 months have been a bit rough between us and partner moved out 6 weeks ago to move in a council house. All is amicable even though she is not contributing any way towards mortgage payments which are £850 per month and she can not afford to do so.
The assumption was between us that we would inform the building society of the situation and I would go to interest only payment while the house was on the market, which I will be doing right after xmas. We both went to see a Britannia adviser last month who did all the paperwork and sent to Head office. I was made aware that it was not his decision to make.
Early December we received a letter from Britannia HO asking for pay slips and personal bank statements which I had previously shown to the advisor in the branch. Anyway, we duly sent these off as requested. I should add that none of us have bad credit history, debts, late payment history etc.
I had a phone call this morning from Britannia Collections dept who say they could not offer interest only payments as the company have now made it policy to withdraw this facility to anyone in financial hardship. When I asked, 'when this was made policy', I was told the 9th December 2013... which just happened to be the day they wrote to me asking for further details and after they had been sitting on my application for approx 2 weeks!! No further financial assistance could be given even though I stated I would not be able to afford the mortgage payment and it would force me to go into arrears and start the repossession procedure.... Extending the mortgage term is not an option as I am already max'd out.
Furthermore, I contacted the branch advisor today to ask why he suggested this option to me. He made some enquiries and and got back to me saying, he and his colleagues and not been made aware of this policy and were still actually proposing it to other customers who were in a similar position. He did confirm that he had contacted his Head Office today to check, and in doing so was made aware that the interest only policy had now been removed.
I do not feel that my complaint will not get anywhere and am quite concerned about being repossessed and blacklisted. My plan was to sell and purchase a smaller property but looking very bleak now.
Any advice?
Thank you in advance.
0
Comments
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Pay as much as you can into the mortgage. Even if it is not the full amount.
In the New Year actively look to sell the property. Will take a number months before action is taken. So you have time to address the matter before repossession proceedings are reached.
Speak to a mortgage broker or apply for a mortgage through a small regional building society. This way you can explain your situation and the reason for the mortgage arrears.0 -
Advice appreciated thrugelmir, are you saying though that there is little else I can do to avoid repossession?0
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If you are not in a position to pay the mortgage then no.
The issue regarding your ex partner is none of the lenders concern. While she may not be contributing to the mortgage she is still liable.
Can she not make any financial contribution at all even on a temporary basis?0 -
It might be worth putting the house on the market ASAP and forwarding any supporting docs to Britannia.
Section 6.2 and 6.3 of the Pre Action Protocol for possession claims states:
If a borrower can demonstrate that reasonable steps have been or will be taken to market the property at an appropriate price in accordance with reasonable professional advice, the lender must consider postponing starting a possession claim. The borrower must continue to take all reasonable steps actively to market the property where the lender has agreed to postpone starting a possession claim.
Where the lender has agreed to postpone starting a possession claim the borrower should provide the lender with a copy of the particulars of sale, the Energy Performance Certificate (EPC) or proof that an EPC has been commissioned and (where relevant) details of purchase offers received within a reasonable period of time specified by the lender. The borrower should give the lender details of the estate agent and the conveyancer instructed to deal with the sale. The borrower should also authorise the estate agent and the conveyancer to communicate with the lender about the progress of the sale and the borrower's conduct during the process.
Are Britannia aware of your intention to sell?0 -
Thanks for the advice, that is useful to know. I am curious though what the monthly payment arrangements would be if they did postpone repossession.
Yes I have informed Britannia of my plans to sell. I will be paying up front for an online estate agents for a 6 month period which is the reason I have not placed property on the market in December. I will now post supporting documents to them as advised.0 -
Why are you paying upfront for an online estate agent? Why not advertise it locally as I wouldn't expect them to do much else for the 6 months, and it would cost less. Stick a for sale board in your garden.Mortgage start September 2015 £90000 MFiT #060
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garythephotoman wrote: »Thanks for the advice, that is useful to know. I am curious though what the monthly payment arrangements would be if they did postpone repossession.Yes I have informed Britannia of my plans to sell. I will be paying up front for an online estate agents for a 6 month period which is the reason I have not placed property on the market in December. I will now post supporting documents to them as advised.
Your lender won't be prepared to wait forever. And may have preferred to see your up-front fee paying the mortgage instead.0 -
Why are you paying upfront for an online estate agent? Why not advertise it locally as I wouldn't expect them to do much else for the 6 months, and it would cost less. Stick a for sale board in your garden.0
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opinions4u wrote: »They will assess your income and essential expenditure to reach an acceptable figure. This may be less than interest only. It may be more.
Good luck with the online agent. These companies often have a slower selling speed than traditional agencies.
Your lender won't be prepared to wait forever. And may have preferred to see your up-front fee paying the mortgage instead.
Re the comment
Good luck with the online agent. These companies often have a slower selling speed than traditional agencies.
I have done quite a bit of research and there is one online company I am considering which has plenty of good reviews on this forum. I am not in a position to hang about though and have not heard any reports of them being slower than High St EA's to sell. Do you have any further info on this?0 -
garythephotoman wrote: »Thanks for comments but property is situated in quiet cul de sac with no passing trade so little point of for sale sign. I don't really think that a local advertising is the way to go, I think you need to be on Rightmove and using online estate agents would be the cheaper option... providing they could sell it of course which I know could be a gamble.
Depending on the size of your property, you could consider taking in a lodger (or two), in order to help cover the cost of the mortgage?
Also, there is a possibility that the lender may offer you a repayment holiday for a short period? This could give you some breathing room while trying to sell perhaps?
I had a while where my employer had to cut all wages, and my lender gave me 3 months holiday - but I could only do this once during the life of the 25 year mortgage.0
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