Mortgage Arrears/ Reposession Help

Hi, i am a resident in scotland and i am currently at the end of my mortgage. I still need to pay a substantial lump sum at the end of my agreement. Due to my health and age the bank have been referring my case for 6 months at a time as i continue to make a monthly payment.

I have been approached by the banks legal department today saying i have 30 days to come up with a solution or they will take my house to auction. I am 70 and unable to get mortgages/loans etc.

My question is can they evict me in 30 days? What are the rules around this? Can i offer them a payment plan over the next few years to pay the remaining balance?

the bank havent given me any places to go to for advice so if anyone has any help for me that would be fantastic.

thanks
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  • sammyjammy
    sammyjammy Posts: 7,921 Forumite
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    What was the original plan to repay this sum thats left?  Is it because you were in arrrears at some stage or interest only?  Do the numbers add up for a potential remortgage?  How much do you owe?
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  • The plan was to pay the lump sum at the end but unfortunately due to business failures thats not the case. Its around 100k. As im 70 they wont remortgage
  • chanz4
    chanz4 Posts: 11,057 Forumite
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    down size an option?
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
  • Hoenir
    Hoenir Posts: 7,073 Forumite
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    Dm2111 said:
    Can i offer them a payment plan over the next few years to pay the remaining balance?


    A £100k is a lot to find over a few years. The bank is going to require some convincing that this just a stalling tactic. 

    Forced repossesion of the property will be at your expense. The bank will charge you their costs. Though will take some months to achieve. You need to think what alternative options you have. As above is downsizing an option?  
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,039 Ambassador
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    I would not want to go down the forced repossession route so if you don’t have a plan to repay through a pension/investment I think you may have to downsize. Was it interest only? 
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  • fatbelly
    fatbelly Posts: 22,762 Forumite
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    Dm2111 said:


    My question is can they evict me in 30 days? What are the rules around this? Can i offer them a payment plan over the next few years to pay the remaining balance?

    the bank havent given me any places to go to for advice so if anyone has any help for me that would be fantastic.

    thanks
    They would have to start a possession claim and there would be a hearing.

    The judge's options in these cases are limited as there is no remaining term, so possession in 28/56 days is the norm.

    After this period expires, a warrant is issued which gives 2-3 weeks before the eviction.

    My experience is with English courts so it is possible there are differences in Scotland

    https://england.shelter.org.uk/professional_resources/news_and_updates/homeowners_rights_at_the_end_of_their_mortgage_term

    Is equity release an option for you?
  • MWT
    MWT Posts: 10,049 Forumite
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    Dm2111 said:
    Can i offer them a payment plan over the next few years to pay the remaining balance?

    That is really a question for you to answer, can you offer a credible plan to get the £100k paid off?
    From the sound of things you are paying the monthly interest payments at what is probably a high interest rate and you'd have to keep doing that at the same time as making additional large payments to clear the £100k you still owe... ... is that actually possible?
    How much do you think the house is worth at the moment?
    ... if it is at least £270k or so, and you only owe £100k you may have other options like Equity Release, but if not then downsizing, with you in control of the sale of the property, really is the best way to get the most capital you can out of the property.



  • silvercar
    silvercar Posts: 49,362 Ambassador
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    Do you have income? Some lenders will lend to an older age than 70. Equity release is also an option. See a broker.

    Pragmatically, it may be worth moving to a different lender if you can. This one’s patience seems to be expiring. A 5? Year mortgage elsewhere would start the clock ticking again in 5 years time. Do you have children that could help with a plan?
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • ACG
    ACG Posts: 24,464 Forumite
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    I cant say for definite, but if it is has not even gone to court yet, you wont be evicted in 30 days. 
    Chances are you will have maybe 6 months plus. 

    But in fairness to the bank, if they have given you 6-12 months plus to figure something out and you have not, what difference will another 6 months make? There comes a time where they need to just draw a line in the sand. You would be better trying to sell the property on your own terms rather than auction as you will get more for it. 

    You can try stepchange. 

    Another thought, how much is your home valued at? If £250k+ you might be able to look at equity release. Its not really my thing so not sure if they lend in scotland, but it could be an option. 
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • user1977
    user1977 Posts: 17,528 Forumite
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    Did they literally say that you "have 30 days to come up with a solution or they will take [your] house to auction"? As others have pointed out, that's a rather misleading and alarmist version of the processes which are actually involved.
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