Mortgage Payment Holiday Ended

penners324

The bank may stay the repossession if the house is on the market to be sold. Downsizing a bit would look to be good option here

MWT

HUMBUG said:

My brothers house is worth £1m but it seems that is irrelevant because the terms and conditions request payment within the mortgage period (ie. end of this year).  Maybe he will strike lucky with finding a broker to facilitate a loan to pay off the arrears and offer him several years to pay it off (unlike Nat West). 

... and if he doesn't want to downsize, is equity release not an option?

getmore4less

MWT said:

HUMBUG said:

My brothers house is worth £1m but it seems that is irrelevant because the terms and conditions request payment within the mortgage period (ie. end of this year).  Maybe he will strike lucky with finding a broker to facilitate a loan to pay off the arrears and offer him several years to pay it off (unlike Nat West). 

... and if he doesn't want to downsize, is equity release not an option?

This would seem to be the better option as designed for this type of scenario longer term(lifetime) borrowing into retirement.

Looks like it will be at <10% LTV to sort out the mess

Probably should have been looked at much sooner rather than trying to bulldozer natwest into submission which looks like it has cost a fair bit anyway.



One for a specialist   that can get this situation into a much more stable state.

sooner it is done sooner that £2k per month stops and a longer term sustainable plan can be put in place. 

There are products that allow interest to be paid so the debt does not grow.

Some that allow capital to be paid as well, seen up to 40% a year ERC free.
They seem to be called Voluntary repayment plans

As. an example of what might be out there( a specialist can consider all the options) 

A quick look would suggest a flexible lifetime would  be around 3%(fixed)

On £100k around £250pm interest, with a 10% annual ERC free, on original amount, overpayment that's a 10y plan at £1kpm
 

dimbo61

If your brother is repaying £2,000+ a month his lender will not want to start repossession.
Each month the outstanding debt is reduced and hopefully your brother will be able to throw more money into overpayments over the coming months.

MWT

getmore4less said:

MWT said:

HUMBUG said:

My brothers house is worth £1m but it seems that is irrelevant because the terms and conditions request payment within the mortgage period (ie. end of this year).  Maybe he will strike lucky with finding a broker to facilitate a loan to pay off the arrears and offer him several years to pay it off (unlike Nat West). 

... and if he doesn't want to downsize, is equity release not an option?

This would seem to be the better option as designed for this type of scenario longer term(lifetime) borrowing into retirement.

Looks like it will be at <10% LTV to sort out the mess

Probably should have been looked at much sooner rather than trying to bulldozer natwest into submission which looks like it has cost a fair bit anyway.



One for a specialist   that can get this situation into a much more stable state.

Agreed, and there are options to get the necessary advice without fees if that is required (StepChange Financial Solutions, or some of the High St. lenders...)

Thrugelmir

HUMBUG said:

csgohan4 said:

They will have difficulty getting another  mortgage as their credit file will be tarnished by all those missed payments and arrears. No right minded lender would will likely touch them given their history

They have been given more than a  year to sort this out, this is a contractual loan, your not lending from Johnny down the pub who can give you some extra time. 

This is regulated lending, Your home is at risk if you don't keep up repayments which is the case. The lender has been reasonable in allowing this for  1 year. 

They have not mitigated their costs, they could have sold their home and downsized. Going through a Repo will incur significant costs through their own choice I'd afraid. Your clutching at straws 

https://england.shelter.org.uk/housing_advice/repossession/repossession_rules_mortgage_lenders_must_follow

Yes, his credit rating is very low now and Nat West seem determined to push through with repossession and haven't responded in writing to confirm rejection of his proposal/request  to pay off the debt over an extended term (its been 18 months to and fro with lots of contradictory replies agreeing with the proposal first and then rejecting it - all via telephone conversations).  He has requested a transcript of all telephone conversations with Nat West for the period of arrears.

There is some sort of protocol that must be followed before the case goes through to the courts but hopefully Nat West will negotiate a payment plan. 

My brothers house is worth £1m but it seems that is irrelevant because the terms and conditions request payment within the mortgage period (ie. end of this year).  Maybe he will strike lucky with finding a broker to facilitate a loan to pay off the arrears and offer him several years to pay it off (unlike Nat West). 

The FCA guidance does say the following:
Your lender should not repossess your home unless all reasonable attempts to resolve the situation have failed.

Alternatives to repossession

With your agreement the lender should consider whether to:

• delay interest payments

• extend your mortgage term

• change the type of mortgage you have

• add the arrears onto your total mortgage debt

They should allow you time to sell your home if you can't come to a repayment arrangement.

They must keep records of their contact with you including phone calls where arrears or charges are discussed.

----------------

It all depends on the lender but it seems Nat West are not interested is considering the alternatives above so they can do whatever they want and ignore the FCA guidelines.

Appears that this has already beem granted. The months pass and no action has been taken. 

csgohan4

HUMBUG said:

csgohan4 said:

They will have difficulty getting another  mortgage as their credit file will be tarnished by all those missed payments and arrears. No right minded lender would will likely touch them given their history

They have been given more than a  year to sort this out, this is a contractual loan, your not lending from Johnny down the pub who can give you some extra time. 

This is regulated lending, Your home is at risk if you don't keep up repayments which is the case. The lender has been reasonable in allowing this for  1 year. 

They have not mitigated their costs, they could have sold their home and downsized. Going through a Repo will incur significant costs through their own choice I'd afraid. Your clutching at straws 

https://england.shelter.org.uk/housing_advice/repossession/repossession_rules_mortgage_lenders_must_follow

Yes, his credit rating is very low now and Nat West seem determined to push through with repossession and haven't responded in writing to confirm rejection of his proposal/request  to pay off the debt over an extended term (its been 18 months to and fro with lots of contradictory replies agreeing with the proposal first and then rejecting it - all via telephone conversations).  He has requested a transcript of all telephone conversations with Nat West for the period of arrears.

There is some sort of protocol that must be followed before the case goes through to the courts but hopefully Nat West will negotiate a payment plan. 

My brothers house is worth £1m but it seems that is irrelevant because the terms and conditions request payment within the mortgage period (ie. end of this year).  Maybe he will strike lucky with finding a broker to facilitate a loan to pay off the arrears and offer him several years to pay it off (unlike Nat West). 

The FCA guidance does say the following:
Your lender should not repossess your home unless all reasonable attempts to resolve the situation have failed.

Alternatives to repossession

With your agreement the lender should consider whether to:

• delay interest payments

• extend your mortgage term

• change the type of mortgage you have

• add the arrears onto your total mortgage debt

They should allow you time to sell your home if you can't come to a repayment arrangement.

They must keep records of their contact with you including phone calls where arrears or charges are discussed.

----------------

It all depends on the lender but it seems Nat West are not interested is considering the alternatives above so they can do whatever they want and ignore the FCA guidelines.

Consider is not the same as Will.

if 1 year is not enough time, what would you consider reasonable? 

The lender is not the one who is breaking the contract, bare that mind. 

HUMBUG

Many thanks for all your comments . 

The situation seems to have gone full circle again . 

The last time my brother spoke to their solicitors they understood there was a problem because no-one from Nat West had formally responded to my brothers payment plan in writing . That payment plan would pay off what is owed if they agreed to extend the mortgage period by about 2-3 years (my brother is still paying the £2k per month without fail).  The solicitors actually contacted Nat West and raised a formal complaint on behalf of my brother .  

He then received a response saying they had failed him and requested he draft up again some form detailing his incomings and outgoings (he's already done this several times over the last 18 months).

Again,  they didn't reply back to his payment plan offer (with an extension)  in writing to decline his offer (or provide any reasons) and just informed him he didn't have the funds available to pay off the mortgage within the contractual term .  They have just referred his case back to their solicitors. 

His case seems to be going around in circles which is why he raised the issue with their CEO on 3 separate occasions.

This is all very strange and wondering whether he should now make a formal complaint to the Financial Ombudsman (as he's not getting anywhere with Nat West ). Just need Nat West to reply back in writing stating why they will not offer an extension (which would be an act of last resort).