Mortgage co forcing me into arrears before willing to discuss reduced payment!!?

IWantMyOwnGenie

Morning everyone
Just finished 2 calls to Leeds Building Soc re my buy to let mortgage. Product had finished and instead of payment going down due to low variable rate, mine goes UP by £150! Due to unexpected home situation (plucking 7 month old nephew out of care or would have disappeared into adoption route) me and partner are working less hours and have unplanned childcare to pay for (no other kids). I am trying to sell up my BTL property to release capital and help with home finances. Tenant left just in time for me to put on market. Now place is empty and am having to find £850 a month on top of living expenses and baby costs out of smaller pay cheque! Asked Leeds for payment holiday for 2 months/anything they could offer until sale. 'Not an option on this product'. She mentioned reduced payments could be agreed. Great! Only available if account is over one month in arrears. So they are forcing me into arrears to be allowed to talk about reducing payments even though I have called them to warn that I will have trouble surviving over the next 2-3 months (car insurance and new tyres are also due but will slam that on credit card). Offered me a new product but with early repayment charge as I am selling up!! Is it fair that they won't talk to me about reduced payments to help me avoid arrears?! I don't deserve a black credit mark when I am managing my finances and notifying them of issues in advance!! Any advice anyone? Thank you x

Southend1

It sounds insensitive to say the least, particularly given your family situation. I wonder if a letter to your MP might encourage Leeds BS to open dialogue with you.

Bantex_2

BTL is a business transaction and will be treated as such.

Typhoon2000

An arrangement to pay a reduced monthly amount will also result in a marker on your credit file.

antrobus

Southend1 wrote: »

It sounds insensitive to say the least, particularly given your family situation. I wonder if a letter to your MP might encourage Leeds BS to open dialogue with you.

I'm inclined to point out that the Leeds BS is already in "dialogue" with the OP. It's just that the OP doesn't like what they're saying.

Bantex wrote: »

BTL is a business transaction and will be treated as such.

It's clear that the OP is in the position where they were (naturally) relying on the rental income to pay the BTL mortgage. Now that they have no tenant and have the property up for sale they don't have the money to meet the mortgage repayments. Not making the repayments will mean that they are "in arrears", no matter how much you dress it up.

I'd guess that the OP realises that, but is really concerned about how the matter will be reported to the CRAs, and what effect it will have on their 'credit rating'. I don't know the answer to that one. Others may have more experience in that particular field.

IWantMyOwnGenie

Hi everyone, yes was ok covering void periods on full salary and before the mortgage hike! Just rubbish timing and general bad luck I suppose. Thank you for all the replies.

Thrugelmir

IWantMyOwnGenie wrote: »

Hi everyone, yes was ok covering void periods on full salary and before the mortgage hike! Just rubbish timing and general bad luck I suppose. Thank you for all the replies.

That's the downsides of operating a BTL as a business venture. As well as the rewards you take the risks. May feel harsh to you but that's the reality of the situation. Lenders are under no obligation to bail you out. For no other reason that they expect you to to exhaust every other option first just like any other business owner.

Thrugelmir

IWantMyOwnGenie wrote: »

I don't deserve a black credit mark when I am managing my finances and notifying them of issues in advance!!

It's a true reflection of your financial health. Credit data is there for other businesses to make informed decisions. Be worthless if it was inaccurate.

jimjames

IWantMyOwnGenie wrote: »

Hi everyone, yes was ok covering void periods on full salary and before the mortgage hike! Just rubbish timing and general bad luck I suppose. Thank you for all the replies.

Can you use your emergency savings to pay the mortgage until sale? Do you have any savings at all you can use?

Sell anything to raise some funds - car and buy cheaper one?

amnblog

If you don't want the arrears on your record, talk to a broker about a bridging loan until you sell.