End of mortgage term last year (August 2024) but bank didn't contact me before now - can't pay total

saajan_12

tifo said:

I know the mortgage term ended in August 2024 and as I was unable to remortgage due to arrears (I didn't try as the bank has been destroying my credit score by reporting 6+ months missed payments even tough i've been in a payment arrangement, having taken it to the Ombudsman the bank said they report the arrears not the payments). As the bank didn't contact me and payments carried on as normal, I assumed they'd extended the mortgage term. I've been on follow on / SVR rate for many years. The only letters i've received from the bank for many years are an arrears statement every month and interest rate changes when they fall or rise.

Mortgage is around £60,000, arrears are near £10,000 and house value is approx £280,000.

Advice welcome.

Thanks

Not that its their responsibility, but what would have changed if they had contacted you that the mortgage term was ending and not being extended? Sounds like you weren't in a position to remortgage anyway. 

You'd still have to find the money somehow, or be in arrears for the full £70k (£60k borrowed plus 10k missed payments). They will get the money somehow since its secured on a more valuable asset, so you may as well sell and hence get back the lions share of hte equity. Continuing to play this game will likely lead to a repossession with significant costs charged back to you.  

enthusiasticsaver

What was the outcome of the court case in February 2020? Was it a repossession hearing and did you come to an arrangement re paying the arrears?

Are you currently covering the interest and have you broken a court order re the arrears? 

There should be no separate dealings re arrears and capital.  I can only assume that an order was made for arrears repayments which you have now breached? In the meantime the term has also expired.  So my question is do you have a suspended repossession order on your house? 

tifo

MWT said:

tifo said:

I know the mortgage term ended in August 2024 and as I was unable to remortgage due to arrears (I didn't try as the bank has been destroying my credit score by reporting 6+ months missed payments even tough i've been in a payment arrangement, having taken it to the Ombudsman the bank said they report the arrears not the payments). As the bank didn't contact me and payments carried on as normal, I assumed they'd extended the mortgage term. I've been on follow on / SVR rate for many years. The only letters i've received from the bank for many years are an arrears statement every month and interest rate changes when they fall or rise.

I would suggest you call StepChange and see what help they can offer you

I will contact them.

tifo

I posted this thread in 'Mortgages and Endowments' and don't know how it's gone to 'Debt free wannabe'.

Can a mod move it please. Thanks

sourcrates

tifo said:

I posted this thread in 'Mortgages and Endowments' and don't know how it's gone to 'Debt free wannabe'.

Can a mod move it please. Thanks

I believe it was moved here because your issue was not been able to afford to pay the mortgage, not an actual issue with the mortgage.

If I move it, it will only be moved back again.

tifo

sourcrates said:

tifo said:

I posted this thread in 'Mortgages and Endowments' and don't know how it's gone to 'Debt free wannabe'.

Can a mod move it please. Thanks

I believe it was moved here because your issue was not been able to afford to pay the mortgage, not an actual issue with the mortgage.

If I move it, it will only be moved back again.

OK, i see, but my issue is about asking for help with my mortgage and (coming) action not to be a 'debt free wannabe' as i'm not asking about my other debts (which are managed).

I'm thinking that if it's in the mortgages category it'll get more views and possible advice. Many people will not look at the 'debt free wannabe' threads as they can't help.

sourcrates

I will move it there gladly for you.

fatbelly

Tifo - do we know your age?

Because equity release might be an option, depending on this

Have a look at this

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

And this

https://debtcamel.co.uk/interest-only-mortgage/

MWT

fatbelly said:

Tifo - do we know your age?

Because equity release might be an option, depending on this

As far as I can see, depending on age of the OP and suitability of property, this may be the only option that avoids having to sell the property, hence my suggestion of this possibility earlier in the thread and the suggestion to talk to StepChange as they do provide fee-free equity release advice..

fatbelly

Op- how did you get on with stepchange?