Stuck on an old interest rate due to arrears

nicnola

I have asked Yorkshire to roll the arrears in to the loan amount and pay off over the term of the mortgage, they have refused this.  Do you think its worth going down the complaints route?  Any advice?

ACG

I think you could get a mortgage if there has been no new arrears for at least 12 months. 
Rate wise will potentially be a little lower than you are paying now but you are not going to get interest only, so repayments will probably be higher. 

As AMN says, you are only about 8 months away. Just stick it out and then you will be able to switch to something better. 

Your post reads like you are blaming the lender, but you are the one who did not stick to the terms, I think every other lender would treat you in the same way. Thats not meant to be a kick whilst you are down, just a bit of confirmation that yorkshire are just doing what any other lender would. 

nicnola

Hi ACG, no I'm not blaming the lender, I can understand that they have set policies. I'm just so frustrated with our situation. I appreciate all the feedback, just trying to find an alternate solution. Thanks.

[Deleted User]

nicnola said:

I have asked Yorkshire to roll the arrears in to the loan amount and pay off over the term of the mortgage, they have refused this.  Do you think its worth going down the complaints route?  Any advice?

I probably would to be fair but thats only because I reckon the Ombudsman might take a different view as the lender could be seen to be overcharging an already vulnerable client.   The lender is probably within their rights to not do anything until arrears are cleared but the Ombudsman can sometimes go the other way.  

It wouldnt help with your current situation as it will take so long to be reviewed by Ombudsman but you might get something back.   Wouldnt cost you anything but a bit of time to try

nicnola

I think I'll give it a try.  It can't hurt right

getmore4less

If they will let you do a product transfer(no checks) once the arrears are paid look at alternative sources for the £3900.

0% purchase credit card and load it with normal spends.

0% by credit card would come with fees but if the mortgage rate drops it will be more than covered.

Thrugelmir

nicnola said:

I have asked Yorkshire to roll the arrears in to the loan amount and pay off over the term of the mortgage, they have refused this.  Do you think its worth going down the complaints route?  Any advice?

You always had the option of downsizing. Lending is risk priced. A commercial decision. 

csgohan4

nicnola said:

I have asked Yorkshire to roll the arrears in to the loan amount and pay off over the term of the mortgage, they have refused this.  Do you think its worth going down the complaints route?  Any advice?

rolling over the arrears into the loan amount is basically increasing the amount your borrowing and a new product effectively. You will fail affordability checks as you have arrears for a new loan with the increased amount, even though it is 'small'.

Banks are now regulated alot more now and they have tick boxes to ensure they don't get sued for mis selling. So in 10 years time you could go after the lender saying you were mis sold as you were in arrears and you shouldn't have been allowed to borrow more.

You will win this likely. Hence why the stricter regulation is in place. To protect the lender and the borrower to an extent