Help on end of interest only mortgage

robtilley1

Can anyone help please. We had an interest only mortgage originally with G.E money, which was passed to Kensington Simpy specialists just before xmas. The term ended on the 21st February and our plan was to remortgage to a full repayment mortgage. We contacted Which mortgages to try and sort us out a deal, only to find that due to us being on a debt management program for the last five years and paying off over £40000 of the credit card debt, we had been defaulted by 3 of the card companies, so no one is willing to offer us a new deal. We have been talking to Kensington and they say they cannot extend our deal or offer us a new one and today I got the call from them saying if we cannot pay them back within 21 days they will start legal action against us for breach of contract. we are both in our late 40s with good salaries. Is there anything we can do or ask for from Kensington to try and get the couple of years we need fully clear the credit card debt and get a clean record to be able to remortgage. If it comes to it and they start legal proceedings how long does it take for repossession

thanks

Rob and Kathryne.

[Deleted User]

I hate to be the bearer of bad news but it looks to me like you might lose the house, basically all you have done over the years is rent it (interest only mortgage), and now they want and are entitled to their money as per the agreement, and being on a dmp with 40k of cc debt means no one is going to lend you the money.
Personally I would start to look for someone to rent asap and even that might not be easy.
Get advice and not online.

HappyMJ

robtilley1 wrote: »

Can anyone help please. We had an interest only mortgage originally with G.E money, which was passed to Kensington Simpy specialists just before xmas. The term ended on the 21st February and our plan was to remortgage to a full repayment mortgage. We contacted Which mortgages to try and sort us out a deal, only to find that due to us being on a debt management program for the last five years and paying off over £40000 of the credit card debt, we had been defaulted by 3 of the card companies, so no one is willing to offer us a new deal. We have been talking to Kensington and they say they cannot extend our deal or offer us a new one and today I got the call from them saying if we cannot pay them back within 21 days they will start legal action against us for breach of contract. we are both in our late 40s with good salaries. Is there anything we can do or ask for from Kensington to try and get the couple of years we need fully clear the credit card debt and get a clean record to be able to remortgage. If it comes to it and they start legal proceedings how long does it take for repossession

thanks

Rob and Kathryne.

Sell it.

Over the years you would have made some capital gain so you will have enough to put down as a deposit on another home. If you can't get a mortgage you will have to rent. Renting is not that much more expensive than owning a property.

Yes they can start legal proceedings and it takes about 6 months to one year to gain possession. You are paying for everything to do with that so if you can sell it you won't lose as much as if you allow them to complete the legal action in full which will cost thousands maybe even tens of thousands depending on how much court action is required. If you can provide evidence the property is on the market they will usually wait. It's very unlikely they will wait years though. They want to see a good effort being made towards selling it.

Thrugelmir

Sell the property and use the equity to clear your debts. Then you can start life afresh.

If you actively market the property then your lender may be more flexible.

banks4u

Not very TCF of them, question what is your credit report like? I know your on a DMP but if the defaults are more than 6 years ago. I can suggest something.

I would also complain to them and say your not treating us fairly as that is big with the FCA. Tell hem you will go to the FOS as well as the FCA.