Does new mortgage invalidate old repossession order?

[PossessionOrder]

Hi everyone. This is my first post. I am in a complicated situation.

 

I have received a threat to execute a Suspended Repossession Order that was issued against my original mortgage. However, I made a new agreement with my lender after the SPO was made. Is the SPO still valid?

 

It is complicated. Some years ago I fell into arrears when ill, and a Suspended Repossession Order was issued. I am still ill. Interest payments were made by the DWP, but the account remained in arrears. The DWP payments only covered interest on the original sum borrowed, and the interest on the arrears was not covered, so this accrued, and compounded.

 

Eventually my lender suggested a shared mortgage, in which they took 25% of the property, which covered the arrears. I accepted, and a new mortgage agreement was made. For a moment there were then no arrears on the mortgage account.

 

However, when the new mortgage agreement was effected the DWP reduced their payments on the original sum by 25%, as the lender was now a 25% owner. Accordingly new arrears appeared, and accrued interest which compounded. I do not have the income to clear these arrears. Now my lender wants to repossess using the original SPO.

 

Do they need to get a new Repossession Order, or can they use the one that was made on the original mortgage agreement?

[Rorschach]

Which lender are you with? I ask this as the situation you have outlined regarding taking 25% equity is very unusual.

[Lea_HTH]

I'd suggest they need a new possession order. And more importantly I'd suggest you seek legal advice as quickly as possible - your information is brief, but it raises multiple questions, including whether you got independent legal advice when accepting the 25% reduction. See a solicitor - as it involves your home, legal aid may be available (dependent on your income).

[Rorschach]

I'm 95% sure Lea is right. If it was a new mortgage than the possession order is invalid. But the information you have supplied makes me question whether it was a new mortgage or an amendment to terms.

To be honest, this sounds like a complicated case where you might need a solicitor to decide.

However, more prudently you have said you can't afford the arrears. Any legal decision about the possession order won't change the fact you have to pay your mortgage. And if you can't afford it, than you can't afford it.