Ive missed a mortgage payment today

michellefromessex

We knew we had to do it as our van (used for OH self employed business) broke down a couple of weeks ago costing us a couple of hundred pounds, we had just about enough money to live on plus our extra outgoings that we knew we had extra after christmas such as van MOT, van tax, Accountant bill along with Tax Bill to be paid, I contacted my mortgage company and asked them if we could have a payment break they said no that our product does not allow one, I told them I was going to have problem making the payment on 31st and they said they would freeze it for a couple of days, today however they still tried to take it from the bank putting me overdrawn and now I daresay a nice £38 charge from my bank tomorrow.

I am worried sick as we already had £150 arrears on the mortgage when we changed from repayment to interest only last feb as our interest rate was spiralling (we are currently paying 9.25%) tied in until next jan, although now we have missed this payment are worried that we wont be able to remortgage and get away from this company next year now.

So as off today we are £1,100.00 in arrears, I just dont know what to do, obviously phoning them isnt going to help as they already said they were not prepared to help us this month, can they take action over this missed payment?

dmg24

Are you able to pay anything?

You do need to call them. Even if they won't say what you want to hear, you need to try to come to some sort of agreement.

Dan_Collins_2

Dont worry or panic, call them and be up front and honest. Even if you can only pay them £20 do it. Your not going to lose your house over 1 month so make an arrangement with them to clear the loan and dont over promise, they would rather you actually pay it over more months than keep messing them about.

Good luck and dont worry.

cells

my advice would be


firstly, you cant afford the house. Sell it!
its not a negative thing, the house was too pricy for you and you need to downgrade or rent.

declare bankrupt and save yourself from paying the 1k+




alternatively.
use someone else with good credit to get your 9.25% interest mortgage down to 5.2%.

for example. you could sell the property to your father for the exact same as the remaining mortgage.

assuming your father has a good credit score he would get a cheap mortgage, you can then pay him "rent" so to speak.

but in reality all that is happening is, its your home and your using this trick to pay less.

at the end of the 25 years he would had it over to you for free





but dont fook up, or else they will reposses your father & his other assets!!

michellefromessex

cells wrote: »

my advice would be


firstly, you cant afford the house. Sell it!
its not a negative thing, the house was too pricy for you and you need to downgrade or rent.

declare bankrupt and save yourself from paying the 1k+




alternatively.
use someone else with good credit to get your 9.25% interest mortgage down to 5.2%.

for example. you could sell the property to your father for the exact same as the remaining mortgage.

assuming your father has a good credit score he would get a cheap mortgage, you can then pay him "rent" so to speak.

but in reality all that is happening is, its your home and your using this trick to pay less.

at the end of the 25 years he would had it over to you for free





but dont fook up, or else they will reposses your father & his other assets!!

Firstly I have lived in this house for nearly 17 years and this is the first payment I have missed even when a single mum I still managed the payments unfortunately my partner being self employed has a lull in work after christmas and although we had savings for our bills, we didnt forsee the van breaking down (causing a loss of 2 days earnings as well as the repair bill). My mortgage was wrongly advised 2 years ago when we took it out, we were told not to go for a fixed as the interest rate wouldnt rise, so was told to go for a low start on first year (remortgage) our repayments went up by nearly £400 a month.

Secondly my parents are 60+ have just retired to a park home with they have no mortgage on and tbh I would never ever go to my dad and ask him to remortgage my home.

I can offer them a payment of £170 at the weekend and we are putting our car up for sale after MOT on 11th feb, and down sizing and grading the car so hopefully there will be money spare to pay them then, just a matter of how quick we can sell it.

cells

michellefromessex wrote: »

Firstly I have lived in this house for nearly 17 years and this is the first payment I have missed even when a single mum I still managed the payments unfortunately my partner being self employed has a lull in work after christmas and although we had savings for our bills, we didnt forsee the van breaking down (causing a loss of 2 days earnings as well as the repair bill). My mortgage was wrongly advised 2 years ago when we took it out, we were told not to go for a fixed as the interest rate wouldnt rise, so was told to go for a low start on first year (remortgage) our repayments went up by nearly £400 a month.

Secondly my parents are 60+ have just retired to a park home with they have no mortgage on and tbh I would never ever go to my dad and ask him to remortgage my home.

I can offer them a payment of £170 at the weekend and we are putting our car up for sale after MOT on 11th feb, and down sizing and grading the car so hopefully there will be money spare to pay them then, just a matter of how quick we can sell it.

if you have owned that home for 17 years you are living beyond your means even if you miss 1 payment! your mortgage should be a fraction of the equity in your home and you should be getting good mortgage offers.


and for not asking your father/mother/son/best friend or who ever, all your doing is giving the bank more than fair price.

9.25% interest is CRAZY

silvercar

my advice would be


firstly, you cant afford the house. Sell it!
its not a negative thing, the house was too pricy for you and you need to downgrade or rent.

I would call it a cashflow problem.

declare bankrupt and save yourself from paying the 1k+

The arrears are secured on the house so would come from the equity and wouldn't disappear in bankruptcy. I doubt anyone would say go bankrupt for £1k!

use someone else with good credit to get your 9.25% interest mortgage down to 5.2%.

Not really fair on whoseever credit rating you are risking.

for example. you could sell the property to your father for the exact same as the remaining mortgage.

Not very sensible to pass up generations as inheritance will be the sting in the tail.

assuming your father has a good credit score he would get a cheap mortgage, you can then pay him "rent" so to speak.

A BTL mortgage that allows you to let to relatives? hard to come by, particularly at low interest rates.

at the end of the 25 years he would had it over to you for free

and face a massive CGT bill himself!

Paying what you can ASAP and downgrading the car seems a good idea.

chappers

cells wrote: »

if you have owned that home for 17 years you are living beyond your means even if you miss 1 payment! your mortgage should be a fraction of the equity in your home and you should be getting good mortgage offers.


and for not asking your father/mother/son/best friend or who ever, all your doing is giving the bank more than fair price.

9.25% interest is CRAZY

cells we can't all be perfect like you, sometimes our circumstances change for whatever reasons. I'm glad I didn't just throw in the towel when i was struggling to pay my mortgage otherwise now my fortunes are a lot better I would be starting all over again.

Ihope you won't be looking for any sympathy or advice if you happen to fall on hard times.

With regards to the OP I would phone them again pay what you can now and offer to clear the arrears over a realistic period(no point making wild offers that you are unable to repay). If your mortgage company really wont listen to you try speaking to one of the debt agencies and get them to negotiate on your behalf.
make sure you keep up with your regular payments to stop your arrears increasing and next time make your accountants wait.

Mikeyorks

Possibly too late (31st Jan - due date, today) but you would have been better deferring your SA tax! HMRC only charge 7.5% ... which probably adds relatively little for a 2 month deferment. But you need to strike a payment plan with them .. to avoid the 5% surcharge that otherwise kicks in 28th Feb.

But if too late for that - you do need to talk to the Mtge provider .. your "obviously phoning them won't help" .. simply won't help! Follow the advice in posts #2 / #3 / #7.

Dan_Collins_2

cells wrote: »

my advice would be


firstly, you cant afford the house. Sell it!
its not a negative thing, the house was too pricy for you and you need to downgrade or rent.

declare bankrupt and save yourself from paying the 1k+




alternatively.
use someone else with good credit to get your 9.25% interest mortgage down to 5.2%.

for example. you could sell the property to your father for the exact same as the remaining mortgage.

assuming your father has a good credit score he would get a cheap mortgage, you can then pay him "rent" so to speak.

but in reality all that is happening is, its your home and your using this trick to pay less.

at the end of the 25 years he would had it over to you for free





but dont fook up, or else they will reposses your father & his other assets!!

Not sure about all that Cells very harsh words!

Your rate is high though, once you get back up to date see if they can offer you a better rate!

michellefromessex

Thank you for all your more "sensible" advice and replies.

Re the Accountant & Tax Bill, these were all paid literally just a day before the van broke (sods law eh?) otherwise we would have used this cash, we have always paid the mortgage over everything else, but what were we to do this time? van broke over £250 in repair bills as well as two days loss of earnings its knocked us right behind. I have checked bank this morning and have incurred £38 charge now too like expected. Will speak to mortgage company later today.

Our mortgage is a Libor rate mortgage and has roughly increased every 3 months since we took it out, we tied in till next jan with a penalty of 7K to leave them.