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  • FIRST POST
    • whits end lass
    • By whits end lass 9th May 18, 4:04 PM
    • 10Posts
    • 1Thanks
    whits end lass
    Smi/interest only mortgage
    • #1
    • 9th May 18, 4:04 PM
    Smi/interest only mortgage 9th May 18 at 4:04 PM
    20 years ago, when times were good, and both myself and my husband were working full time, we decided to buy a do upper 2 bedroom bungalow to live in . We had a regular repayment mortgage at the time. However a few years later, we took out a remortgage to carry our serious repairs that needed doing in the property. The broker at the time said that we should do an Interest only Mortgage and carry out an ISA alongside for when the term of the mortgage ended. As fate would have it, my husband fell ill with a Parkinson's related disease, and had to stop work as a result. I still worked full time whilst looking after him, to maintain the mortgage payments and bills. However his illness got worse, and a s a result I had to stop working to and become his carer.
    The recent changes in the DWP house/mortgage payments, as a Loan, is fundamentally a major ticking time bomb
    We have four years to run on our mortgage with no assistance from the Mortgage company who insist we cant 'remortgage', just to extend the timescale, because we are on benefits, and we wouldn't be able to have another interest only mortgage anyway.
    Contact the DWP, and they have stated that its down to Serco, contact Serco and they say we should speak to the DWP, contact the original Mortgage firm , and they state that they cant advise, and contact shelter or Citizens advice.
    Both of these state that as there is no Equity in the property that they would be unable to really help with a way forward. Even the ombudsman have no complaints process to bring this to any sort of end. Apart from handing over my keys to whomever gets my house first , I am at a loss. Any ideas anyone?????
Page 2
    • whits end lass
    • By whits end lass 14th May 18, 10:08 PM
    • 10 Posts
    • 1 Thanks
    whits end lass
    Thank you Antrobus. Actual advice. !!!!!!.
    • Pixie5740
    • By Pixie5740 15th May 18, 6:47 AM
    • 12,401 Posts
    • 17,623 Thanks
    Pixie5740
    Mr ginge- 20k, not that this has anything to do with the initial query??
    Originally posted by whits end lass
    It is very relevant. According to your OP you were advised to take an interest only mortgage and set up a repayment vehicle (ISA) for the capital. You now want to make a complaint to the ombudsman. About what exactly? You weren't mis-sold, you received advice and you didn't follow it. As has already been explained to you a repayment mortgage would have been no use to you because the repayments would have been broadly similar to the interest only mortgage payments plus however much you were supposed to be saving in the ISA. If you couldn't keep up the repayments on a repayment mortgage the lender would have eventually repossessed or might have consented to switching you to an interest only mortgage so you're no worse off now that you could have been with a repayment mortgage. If anything you could well be better off.

    There isn't a magical solution for your situation. You either thrown yourself to the mortgage lender's mercy and hope that they extend the mortgage of your term indefinitely or you accept that sooner or later the place will need to be sold/repossessed.

    I too find it incredible that after 20 years there's no equity in your home whatsoever.
    • antrobus
    • By antrobus 15th May 18, 7:47 AM
    • 15,757 Posts
    • 22,420 Thanks
    antrobus
    My reading of the OP is that the poster wants to complain to the FOS about their current dilemma and not what happened twenty years ago.

    Whether there is equity in their property I do not know. Depends on where it is.
    • Pixie5740
    • By Pixie5740 15th May 18, 9:13 AM
    • 12,401 Posts
    • 17,623 Thanks
    Pixie5740
    My reading of the OP is that the poster wants to complain to the FOS about their current dilemma and not what happened twenty years ago.

    Whether there is equity in their property I do not know. Depends on where it is.
    Originally posted by antrobus
    Who would the OP be raising a complaint against regarding her current situation?

    Is the OP stuck between a rock and a hard place? Yes. Is complaining to FOS going to get the OP anywhere? Unlikely. It's time for the OP to explore other avenues which includes eventually selling the property.
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