Repossession

steveinlondon

I’m behind on my mortgage & I’ve built up a dept of £5,000 
I contacted my lender to try & come to some sort of arraignment with them, As I only have 5 years remaining on my term, I requested to to extend my term to 8 years to bring down the payments, they refused.

Today I received a letter stating they are taking legal action to repossess my property because of previous failed arraignment with me?
this has me confused because at no time have they ever offered any kind of help or arraignment, absolutely nothing at all
it has literally gone from, A letter last month asking how do you propose to pay the arrears, to a letter today stating they are taking legal action to repossess!

My mortgage payments are £762 a month, I’ve offered £800 a month & they still refused!!!!!

  

ACG

Just pay the £800 if you can afford it.
You will find if it does go to court, you are overpaying to bring the arrears down (although at £40 a month it is going to take a long time). It would look more favourable if you do end up in court.

Thrugelmir

steveinlondon said:

My mortgage payments are £762 a month, I’ve offered £800 a month & they still refused!!!!!

  

You say you contacted your lender. Have you previously ignored all previous contact from them. Lenders simply don't allow arrears to build. Repossession is very much a final step when other avenues have failed. The court will expect to see evidence to support this. As won't rubber stamp the application from the lender. 

The offer of £38 pm extra isn't going to make a serious inroad into the arrears. 

Have you provided your lender with details of your income and expenditure? 

Has the issue as to why the arrears accumulated been resolved (asked rhetorically) ?  As will have a bearing on your lenders actions. 

MWT

Have you looked at unsecured loans?

£5,000 is not a large sum of money, but I appreciate that any additional expense is unwelcome, but it feels like an extra £38 isn't really going to cut it as that will not get you caught up by the end of the term...

steveinlondon

Unfortunately I lost a well paid job & I was unemployed for 6 months, I’m back in work but earning 50% less then what I’m used to.
I’ve completed an expenditure form & they state I can afford my current mortgage rate, which is fair enough but I can’t afford anything extra at the moment & no I’ve never ignored letters from them.
I also explained I’m due some inheritance in 6 months or so because my mother died of covid last week!!

MalMonroe

I'm really sorry to hear about your mum. On top of everything else, that's really awful. Do you think you could contact Citizens Advice because they can give you advice. For example click on this link  https://www.citizensadvice.org.uk/resources-and-tools/search-navigation-tools/Search/?q=mortgage+arrears&c=SERP-PUBLIC

It just seems like you could do with someone in the know to talk through all your options with you and Citizens Advice can do that, without charging anything.

You've done well though, you have a job now - even though it's poorly paid compared to your last one, it's better than nothing.

Hopefully, as you will be inheriting soon, you will be able to negotiate with your lender until that happens. I do hope so. I was always led to believe that lenders hate to repossess properties and try to help borrowers as much as they can. They seem to be very unreasonable. I'd also want to see proof of the arrangement they say you failed to keep. (I'm assuming you mean arrangement and not arraignment.) They should have some kind of official paperwork, ask to see it.

steveinlondon

Yes that’s the problem, they say I never kept to the arrangement, I’d love to know what this arrangement was because they’ve categorically never me offered one!
they’ve offered me absolutely nothing at all
just seems so unfair they want to repossess my property for the sake of £5000
it’s valued at around £320,000 & I only have £45k remaining

MWT

You might consider talking to ‘Step Change’ or ‘Shelter’ as well, they may be able to help you navigate the next few months. 

Sotts

Let it go to court.  Repossession is a very last resort.  As you have an inheritance coming, the court may put a suspended possession order in place.  This will have terms that you must stick to otherwise they will repossess.
Alternatively sell the property. You'll get equity back and keep your credit record cleaner than having a repossession.   Ask your lender about assisted voluntary sale.  They look after everything.   Then with the equity you have, buy a smaller property you can afford 

Iwillbedebtfree

You need some legal advice ASAP. Depending on your income you may qualify for free advice under legal aid. You would benefit from having a specialist adviser who knows the process intervene in your behalf, which can sometimes be more effective. You can use this link to find an organisation offering housing advice and representation under the legal aid scheme.

https://checklegalaid.service.gov.uk/find-a-legal-adviser?category=housing

If you haven’t already then request copies of all previous correspondence they *think* they have sent you on this matter, so you know what evidence they are relying on.  Hopefully you can avoid this going to court. 

As a last resort if it does go to court - there should be free representation available there which is independent and non- means tested under the housing possession court duty scheme. 

They can advise you before and after the hearing and advocate for you during the hearing.
Good luck.