Stressful situation with BTL mortgage

blueandgreenpoppy

We've been messed around by our BTL mortgage company. The interest only mortgage term ends at the end of this month and we are probably going to sell the property, with the (nightmare) tenant finally moving out this week after us serving 6 months notice.
Despite promising us for months that it shouldn't be a problem to extend the term for 6 months without a revaluation (but saying we couldn't ask for this formally until 1st March), the mortgage company is now going back on that and have sent a redemption letter. We won't be in a position to pay the outstanding loan by the end of the month, our money is tied up in ISAs and pensions.
Does anyone know what happens then? If we hadn't been led to believe the mortgage company would extend the term, we could have remortgaged with someone else 6 months ago.
We have raised a formal complaint with them and will take it to the ombudsman if necessary as they have not been fair and reasonable.
In the meantime, thanks in advance for any advice about what might happen next/what we can do  - it's a very stressful situation to be in.

MWT

blueandgreenpoppy said:

Despite promising us for months that it shouldn't be a problem to extend the term for 6 months without a revaluation (but saying we couldn't ask for this formally until 1st March), the mortgage company is now going back on that and have sent a redemption letter.

What form did the 'promises' take? ... can you share the exact wording?

You need make a final choice on the 'probably going to sell' as it is unlikely any lender is going to try to repossess if you are already making vigorous efforts to sell, but if you just drift past the redemption date without a plan that would be their next step.

Your complaint may buy you some more time, but use that to execute the plan not delay the decision...

blueandgreenpoppy

Thanks. The promises were in phone calls which we didn't record, but they were unequivocal that it wouldn't be a problem. We record everything now! We've since realised the mortgage company call handlers seem to make stuff up as they go along... their Trustpilot reviews reflect how dreadful they are. 
I would think the mortgage company will have recordings of our conversations.
Yes, of course we need to decide about whether to sell or not, but the tenant has been refusing access to the property but once she vacates and we get in there this week and have some valuations, we can make a proper decision about selling. I've sent the mortgage company redacted copies of messages between us and the tenant where we keep asking for an inspection and she refuses. We haven't had access for over a year.

K_S

@blueandgreenpoppy You have one of two choices. Put the property up for sale or remortgage with a new term.

As long as you take one of these steps asap and can evidence it, your current lender isn't likely to take any aggressive steps to repossess as it wouldn't make commercial sense.

But you do have to take a decision on whether to keep or sell.

blueandgreenpoppy

@K_S thanks, that's some reassurance.
Yes, of course we know we need to make a decision asap and will do so. As soon as we can actually go into the house registered in our names. 😧

MWT

blueandgreenpoppy said:

Thanks. The promises were in phone calls which we didn't record, but they were unequivocal that it wouldn't be a problem.

You can make a Subject Access Request (SAR) to obtain copies of any recordings they may have.

Before wasting too much time on that though I'd think carefully about the wording they used as there is a wide gulf between 'yes that shouldn't be a problem' and 'yes you will definitely get an extension'... the first of those is not 'a promise' you can rely on...

blueandgreenpoppy

Thanks. Looking at MSE's advice about mortgage complaints, they are obliged to treat customers fairly, and that's certainly not the case here, we were left in no doubt it wouldn't be an issue. The worst part now is the conflicting messages they are giving us and slowness in responding. You can't actually talk to the department making the decision, just call handlers who seem to have very limited comprehension skills and tell us something different each time. 
My other half is going through his own phone records now as he may have recorded it, but if not the subject access request might be an option.
We will have made a decision by this time next week - my real concern was what the consequence would be if we didn't pay off the amount owing by the end of March.