proof to pay off interest only mortgage

dunstonh

Whilst the lender can repossess, you dont hear of cases of it as where the mortgage interest is being paid. its a trigger that can be pulled but rarely is. Forcing a switch to repayment basis is something I have seen. However, this is mainly about backside protecting further down the road when you get the inevitable compensation chasers trying to blame the bank for them not knowing their interest only mortgage meant they were only paying the interest.

The FCA guidelines are that you have three years from being reasonably aware of an issue to raise a complaint. These letters are suitable trigger points to start that three year clock.

Thrugelmir

myfairlady wrote: »

If anyone can offer any help I'd really appreciate it. I guess I'm on their radar now because they've sent two?

If you fail to respond they'll continue to write. Simple as that. Lenders are now in protecting themselves mode. As repossession is a time consuming and expensive exercise. Something lenders would wish to avoid at the end of the mortgage term if they can possibly can.

myfairlady

dunstonh and thrugelmir, thank you for your advice. I really appreciate it. A part of me wants to avoid answering the letter, however i do take your point that they will keep chasing.
I am afraid they will switch me to repayment...

Oh what to do!!!

Thanks for you advice.

POPPYOSCAR

We also have had two letters.


Not responded to either.


Our fixed rate deal ends soon, will see if they say anything then.

myfairlady

Thank you Poppyoscar, at least i'm not the only one.

This weather is making me want to sell up now and move somewhere very warm!

Tigsteroonie

My parents kept getting these letters during the last few years of their interest only mortgage. They ignored them. Nothing happened other than my parents got slightly annoyed at repeatedly being asked

POPPYOSCAR

myfairlady wrote: »

Thank you Poppyoscar, at least i'm not the only one.

This weather is making me want to sell up now and move somewhere very warm!

I actually like the cold weather.


Huddled up right now in front of a roaring fire - feeling very cosy!

Thrugelmir

myfairlady wrote: »

I am afraid they will switch me to repayment...

Oh what to do!!!

For your own peace of mind I would suggest making plans for the future. Worry less about the lender and think about yourself. If you aren't in a position of repaying the debt by the end of the mortgage term. Consider your options now. Is extending the mortgage term feasible. Little point in renting a house that one day you are going to have to sell in a rush. Thereby not even achieving the best price. Downsizing with no mortgage is another alternative.

Thrugelmir

Tigsteroonie wrote: »

My parents kept getting these letters during the last few years of their interest only mortgage. They ignored them. Nothing happened other than my parents got slightly annoyed at repeatedly being asked

People get annoyed when they get defensive as more often or not a raw nerve has been touched. Everybody's situation is different. Little point in sticking ones head in the sand like an ostrich. When the complaints start rolling in there will be little sympathy.

myfairlady

Thank you Thrugelmir. There are a number of different options available to me for repaying the mortgage, none of which will come to fruition until nearer the end of the term, which is why I am unwilling to disclose them to the mortgage lender now.


I am still in two minds as to bite the bullet and sign the form and 'see what happens', or to hold off signing the form.


I guess an answer will present itself soon.


have a great day all.