Barclays taking house off 76yr old with Dementia, as Interest Only Mortgage has expired

enthusiasticsaver · 13 October 2018 at 12:47PM

As the mortgage is being charged at 5% and your mum has no plans to repay it and is not liv8ng there I would sell it. Going to court for repossession will mean you incur costs so this is better dealt with in a way where you have control. Your mum is obviously pretty ill but there is still no telling when she will die and if she is staying with you is this long term? If it is then why keep the house anyway?

AnotherJoe · 13 October 2018 at 12:56PM

enthusiasticsaver wrote: »

As the mortgage is being charged at 5% and your mum has no plans to repay it and is not liv8ng there I would sell it. Going to court for repossession will mean you incur costs so this is better dealt with in a way where you have control. Your mum is obviously pretty ill but there is still no telling when she will die and if she is staying with you is this long term? If it is then why keep the house anyway?

I'd be sure its because there is no POA, so the OP cant sell it, and mum isn't going to sell her house voluntarily because thats what old people tend to hang onto however illogical (and thats without dementia destroying their judgement).

Unfortunately OP failed to get POA before mum needed it, and maybe mum being stubborn wouldnt give it anyway, just like she didnt create a way to finish up the IO mortgage (and there's a 2025 mortgage as well that might be similar?)

So OP is stuck between a rock and a hard place due to "younger mums" actions, and is blaming Barclays instead.

Thrugelmir · 13 October 2018 at 1:21PM

dementia_barclays wrote: »

Hopefully Barclays will see sense

Your mother agreed to repay the debt on xx date. That's the nature of signing a legallly binding contract. No game is being played.

dementia_barclays · 13 October 2018 at 3:59PM

Barclays are not a charity, but 5.5% is good for them & repos stats must count against them & their decision making (it should).
She got house during a split (single since) and was never savvy (hence accepting 5% minimum), two thirds of the current mortgage went to pay off a bank loan of a few thousand when she opened a shop 30 years ago, after it ballooned to tens of thousands.

She might have had an endowment, not sure, but it is well gone.
Mortgage will be paid off when she dies, which even though young at 76, it looks to be pretty soon. Especially if she gets wind of this problem (it will worry her to death)
She won't settle anywhere else, so her home, with me may be necessary.

Better than forcing her elsewhere, if not needed.
Of Interest Only clients, many will not have Dementia.
I hope all ones with it get a stay of execution, when they have no 'decent' finance options and were victims to the endowment miss selling.
(I feel shame, having worked in an Estate Agent, personally receiving & hearing, the promises of guaranteed payouts - but then I was never cut out for finance)

Barclays were awkward by not suggesting a 'letter of authority' for many many months, then accepting it one moment but not the next. Lacking mental capacity or not, apart, it is so easy for them to continue the status quo.
Anything else will damage her health.
Even if just with a short time limit & especially after agreeing to in May.
30 days notice, since changing their mind, is nothing.

On miss selling... they allowed her to run up a 1,200 overdraft.
Once she could not afford to pay it off, they gave her a personal 'expensive' loan. Then they gave her another 1,200 overdraft.
Once that had been used up and she could not repay it, they sold her another loan. Again, giving her another 1,200 overdraft.
We asked them to stop providing further loans/overdrafts.
Once it was all paid off, they closed her account.
Surely, Loan Sharks, are the only ones that add expensive lending to a vulnerable person in debt?
(it was common knowledge and a joke between cashiers, that she kept losing her cards and was 'dotty')?

Cl!usula Suelo

Barclays selling 'fixed minimum rate mortgages', as mum appears to have, was found to be 'miss-selling' in Spain

theguardian.com/business/2016/apr/08/spanish-consumers-win-victory-over-mortgage-payments-barclays-santander-class-action
Banks including Barclays and Santander face a €5bn (£4bn) bill after a Spanish court ruled that millions of fixed minimum rate mortgages were null and void because of the “lack of transparency” in the way they were sold

26 April - European Court of Justice in Strasbourg, has ruled that the banks must return everything charged for, under the 'fixed minimum rate' clause.

dunstonh · 13 October 2018 at 6:14PM

Barclays are not a charity, but 5.5% is good for them & repos stats must count against them & their decision making (it should).

it may be good for them but the mortgage has ended. So, it would need a new mortgage and she doesnt appear to meet current mortgage criteria. this isnt like an overdraft than can be casually extended. This requires a new mortgage agreement.

On miss selling... they allowed her to run up a 1,200 overdraft.

An overdraft has nothing to do with a mortgage. It is also unsecured debt and not a very big amount. So, that is a red herring and can be ignored.

Once she could not afford to pay it off, they gave her a personal 'expensive' loan. Then they gave her another 1,200 overdraft.

Personal loans are cheaper than overdraft.

you are not given an overdraft. The person has to spend the money to get into a position of overdraft. The bank didnt spend her money. She did.

Surely, Loan Sharks, are the only ones that add expensive lending to a vulnerable person in debt?

Since when is 5% expensive?

Thrugelmir · 13 October 2018 at 6:23PM

dementia_barclays wrote: »

Barclays are not a charity, but 5.5% is good for them & repos stats must count against them & their decision making (it should).

How much is the debt owed? The potential profit that you are alluding to needs to be put into perspective. Micro managing delinquent customer accounts doesn't come cheap.

dementia_barclays · 13 October 2018 at 6:36PM

79K mortgage. Sure... but communicating, especially co-operating with relatives when a client has Dementia, could reduce many issues. Privacy apart. Even a text message that a DD has failed or been cancelled, would help.

Let alone, after being accepted on the account, an email or call to say... we are stealing your property in 30 days!

antrobus · 13 October 2018 at 6:37PM

dementia_barclays wrote: »

...

...
Barclays selling 'fixed minimum rate mortgages', as mum appears to have, was found to be 'miss-selling' in Spain

theguardian.com/business/2016/apr/08/spanish-consumers-win-victory-over-mortgage-payments-barclays-santander-class-action
Banks including Barclays and Santander face a €5bn (£4bn) bill after a Spanish court ruled that millions of fixed minimum rate mortgages were null and void because of the “lack of transparency” in the way they were sold

26 April - European Court of Justice in Strasbourg, has ruled that the banks must return everything charged for, under the 'fixed minimum rate' clause.

Mmm. Yes, well. Unless your mother was sold a mortgage with a fixed minimum monthly payment in Spain, then that is utterly irrelevant.(A fixed rate is not a fixed minimum monthly payment on a variable rate.)

I'd echo what other posters have suggested. Sell the house and repay the mortgage. She has dementia. She needs care. Use the proceeds to pay for the care she needs.

dementia_barclays · 13 October 2018 at 6:43PM

Hers goes up (not fixed), gone up approx half a percent this month
But only goes down to 5% (minimum rate)
Sounds like a 'fixed minimum rate mortgage'

Won't have time to sell house, if they take it from her in 17 days

badmemory · 13 October 2018 at 7:04PM

The biggest problem with this is that they will take it & sell it at auction & they will only need to reach 17% of its actual value. That is all they need to make to clear the debt. They do tend to make sure that there is nothing left after they have taken their cut.

So someone is going to get a bargain & all her neighbours houses will be devalued.

Barclays taking house off 76yr old with Dementia, as Interest Only Mortgage has expired

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