Interest Only mortgages - double recovery?

[iconoclash]

Hi - starting point for me is finding out which charges were made and when and for what reason and then tallying those against 'other columns' to identify this process of theirs - also seem to recall that making arrears charges were banned in certain circumstances, back in 2009. All charges have attracted interest, some once, some twice of course.....

 

 

"* The FSA last week included a ban on arrears charges when a borrower is already repaying, and ensuring firms do not profit from people in arrears among its reforms of the mortgage market." taken from The Guardian, 29 Oct 2009.

[iconoclash]

Hi - I can't find an answer on this question so thought I'd post it up here - hope to shed some light on this. If a sub-prime lender keeps applying for eviction where they have a suspended repossession order, and they do this immediately the monthly payment is missed or late - doesn't that mean that they are applying ahead of the default period of one month, since all mortgage payments are made in advance.? I thought you couldn't take anyone to court for future charges and the mortgage payment can't be listed as missed until the end of the month has elapsed. Secondly, if a lender/servicer changes it charging/accounting period to mid-month from end of month, isn't that then a change to a core term that is not allowed? I'm thinking that if this is allowed to go through, then the lender/servicer is then using that to go back into court sooner and avoids the protocols etc. Hope this isn't too confusing but I cant figure out how these lenders keep getting into court within the same month that a payment is due (in advance). Any ideas/thoughts welcome, thanks.

[colin11]

I don't have the answer to your question, but my mortgage is with Santander, and my Mortgage is paid in arrears

 

From what i was led to believe, mortgages from banks are paid in arrears, and mortgages from building societies are paid in advance

 

so i would have thought it would depend who your mortgage is with

[applecart]

I like this question ; )

 

If it is a persons main dwelling - then there is every reason to consider whether it is a "regulated mortgage".

 

A regulated mortgage is a 'specified kind of activity' for FCA regulated purposes.

 

In a nut shell - only firms who are "Authorised" by the FCA can carry on the "administration of a regulated mortgage contract"

 

Firms who are not "Authorised" may carry on certain activities in relation to a regulated mortgage contract - but those activities are generally limited ones.

 

Limited activities in relation to such firms does not normally mean they can actually "administer a regulated mortgage contract".

 

Administering a mortgage is such things like:

 

sending you letters - 'on behalf of' the lender

sending you notices of interest changes etc - on behalf of the lender

taking steps to collect payments or taking steps to enforce collection/debt/payments - 'on behalf of' the lender.

 

Best to contact the Financial Conduct Authority if you think that something is not quite right with the admin of your mortgage for a definitive answer -

 

There is the FCA register here: https://www.fsa.gov.uk/register/firmSearchForm.do

 

input the name of the firm you are concerned about. Check everything out about the firm concerned.

 

If there is anything you are unsure of - email the FCA and ask them what is going on - they will assist you with an - unbiased - transparent - clear explanation

 

If you find a firm is acting outside its permissions then you MUST ALWAYS report them to the FCA.

 

Hope this helps?

 

Apple

[applecart]

BTW - if a firm is administering a regulated mortgage without FCA permission/Authority - then it constitutes a breach of the Financial Services and Markets Act 2000 section 19 - the general prohibition.

 

The general prohibition applies to Law Firms too when and if the mortgage is 'regulated'.

 

Hope this helps?

 

Apple