Only paid interest this month to Mortgage Express - could I be in trouble?

xiaomao

Hello all,
I have a repayment mortgage of £745/month and since I lost one of my part-time jobs I have had a few financial difficulties. I decided to sell my house, downsize and buy a much smaller home with a smaller or no mortgage. I have been making my monthly payments regularly for 11 years and took a payment holiday for 6 months 5 years ago, when I became a part-time university student. I resumed payments after 6 months and have never ever failed to make a full payment.
I received a good offer for my house and accepted it. I have found a new home and after repaying the outstanding loan to the mortgage company, I will have enough money to pay cash for the new house I found.

My worry is that due to having lost part of my income 4 months ago, I found it very difficult to pay the total amount this month. 3 months ago, I contacted Mortgage Express (now UKAR) and asked for a reduction in monthly payments. I offered to pay £400/month or to have a short payment holiday, or interest-only payments until I found an extra income. They did not accept any of my options so I continued payments as usual until this month.
At the moment, the £745 cover about £250 interest and the rest goes to repaying the loan.
Since I was overdrawn this month, I could not afford the full £745 so I made a payment of £350 to at least cover the interest.
My lawyer instructed me today that the completion of the sale of my present house has been agreed for 10/10/14. The buyer has already deposited the money into a holding account; he wants to move in as soon as possible. We will sign all papers next Friday and I will have a week left to move out on completion date.
My concern is that Mortgage Express or UKAR might want to take proceedings against me for failure to pay the full monthly instalment this month. My monthly payments come out on the 21st of every month so I will have had time to pay off the full outstanding debt by the next instalment date (21/10).

Should I write to Mortgage Express to explain the situation? Would it be best not to alert them considering that by the next due instalment I will owe nothing to them? Could they still take action against me for having paid only the interest this month and not the full instalment, even though I let them know I had met temporary difficulties?

What course of action would you suggest I take?

Tigsteroonie

I'd do nothing unless you hear from them specifically on the matter

But that's just my opinion.

ACG

For the sake of 10-11 days I wouldnt worry.

Give them a call tell the house is up for sale and is due to complete in 10 days and the full balance will be cleared then.

Theyre not going to do anything in 10 days time. It wont reflect great on your credit report... but you dont need a mortgage so I wouldnt worry too much.

Thrugelmir

xiaomao wrote: »

My concern is that Mortgage Express or UKAR might want to take proceedings against me for failure to pay the full monthly instalment this month.

That'll take weeks not days to impact you.

Your bigger issue will be that of your recent credit history which may make another mortgage more difficult to obtain.