Pension Linked Mortgage - Pensions not paying out

Stammers

TrickyDicky101 doesn't really help with a comment like that!!


An insurance broker actually recommended it. I know the investment is there. It's just not paying out yet, and as per other comments maturity time can vary. Being threatened with repossession is actually quite significant to me so yes the Mortgage provider side is important. However, my issue is that it's not with the ORIGINAL provider - Northern Rock. It's a brought up debt so all they want is money not a settlement/agreement pending the pension payout.

dunstonh

he investments are in Poland from what I know. I cant give an exact date, but you are talking about a significant time ago that the pensions and mortgage were taken out.

These sound like unregulated investments. Physical property is not regulated. We don't need an exact date but what sort of ballpark year are we looking at? Who put the SIPP in place?

Do you receive annual/6 monthly statements?

So reading between the lines what you are saying is that these are unregulated investments so I don't have anywhere to go to complain or chase up the money or settle the mortgage issue ie the pension ombudsman or financial ombudsman. However, surely the bank would not have loaned the money if it was and "dodgy" scheme?

Overseas property is not a mainstream option typically put in place by regulated individuals. There have been a small number of regulated individuals that have been caught up in it but most of these overseas property things are scams put in place by unregulated individuals. If no regulated individual was involved then you do not get the consumer protection that regulated advisers afford you. So, no access to the FOS or the FSCS.

There are alarm bells here and you need to be prepared for very bad news. If the SIPP provider cannot release funds for over a year (so far) then it suggests the investments are illiquid and cannot be sold. This may be because they are suspended from trade or there may not actually be any real assets or it may be that there are assets but no-one has attempted to sell them.

edit:

An insurance broker actually recommended it.

insurance brokers are not authorised to deal in regulated investments.

I know the investment is there.

So, why has it not been sold?

HappyHarry

Stammers wrote: »

Was the pension invested like this at the time the pension linked mortgage was set up?

Yes it was.


Trouble is Landmark wont wait for the pensions to mature, and the pensions wont pay out as they say they are not mature.


So which is at fault? Pensions for not paying out, or Landmark who brought up the mortgage to get a return and are disregarding the original terms of the mortgage as it was not with them....?

The mortgage company are well within their rights to demand repayment of the mortgage at the end of it's term.

The issue here is that your pension investments are not liquid enough to surrender at this time. This is not the responsibility of the mortgage company.

worried_jim

I'd imagine that the payments Landmark are taking are just the interest and not capital, they will continue to do so otherwise your borrowed amount will increase. Hope you get it sorted, doesn't sound good so far.

Stammers

HappyHarry wrote: »

The issue here is that your pension investments are not liquid enough to surrender at this time. This is not the responsibility of the mortgage company.

Agreed, so what is the best course of action?? That is my main question!

HappyHarry

Stammers wrote: »

Agreed, so what is the best course of action?? That is my main question!

Were the pension investments made after taking advice? If so, speak to the adviser. Else, speak to the pension provider directly.

There is a lot of knowledge within posters who frequent the pension boards. If you post details of the pension and investments there, and the circumstances surrounding the purchase, you may receive some useful guidance.

I can see you have already posted some detail on the pension board, and a poster has unhelpfully linked back to this thread, but I would still suggest that you put some details over there.

Kynthia

It might be best to take every bit of information you can find on this investment on Poland, everything from the start and any paperwork you've received over the years, to a properly registered Independent Financial Adviser. You will need to pay them to go through it all and find out what investments you have, whether they exist or are a scam, what money you are possibly due and how you can get it. I'd maybe try to find someone who has experience in trying to assist people who have unregulated investments. This may not be quickly resolved.

In the meantime you need to communicate with your mortgage lender. At the moment you have come to the end of your mortgage and not repaid them the capital balance. See if they'll give you more time. However due to the nature of your particular lender it's more likely that you'll need to remortgage with someone else. Depending on your current circumstances and affordability it might be best to find a good mortgage broker to assist you with finding a new lender for now.

Thrugelmir

Stammers wrote: »

So which is at fault? Pensions for not paying out, or Landmark who brought up the mortgage to get a return and are disregarding the original terms of the mortgage as it was not with them....?

Landmark are not disregarding the original terms of the mortgage contract. In fact they are enforcing it. In that repayment of the debt is due on or by a given date.

When they bought the debt the mortgage contract was transferred to them. If you read the small print of the contract you'll find that you agreed to this. Actually a very standard term.

jamesd

You have two main tracks to follow:

1. You need a replacement mortgage to repay the current one. This is how you get out of the mess in the short term.

2. You need to learn much more about the syndicated property investment and that includes what you were told and by who at the time you purchased it. Both whether you got actual financial advice and what maturity, if any, was specified at the time matter. This will almost certainly not be resolved in time to prevent repossession, so do not use this track as the one you rely on to do that.

The party at fault initially appears to be you, for choosing an inappropriate investment within the pension that you relied on to repay the mortgage. But that is subject to what you were told at the time you took out the investment, in particular whether you received regulated advice.