ITL Interest only Mortgage - they want me to sign i will pay it off when term ends?

[toxicdebt]

Hi

 

I took out a interest only mortgage with ITL Mortgages 7 years ago (never missed a payment) which has been sold on 3 times since and Im now with Coventry Building Soc.

 

Today Ive received a letter from ITL mortgages asking me to sign a form which they have sent me stating that I understand that it is entirely my responsibility to provide funds to pay off the loan when it ends in 2032.

They use the words 'must sign'.

It doesnt ask for any details of what I am doing to ensure I can pay the mortgage off at the end of the term, just a signed declaration

. I understand its my responsibility to do so in the future.

 

Its interesting that its not come from the Coventry BS

- My current lender

- but from the original lender I took the mortgage out with 7 years ago.

 

I know that I am responsible, but am I obliged to provide them with a signed declaration saying so?

The covering letter nor the form states what will happen if I fail to return the form.

 

Im thinking this might simply cover their back over some legality / me suing them for mis selling etc, and by signing I might be excluding myself from something that may or may not arise in the future.

 

Do I need to sign and return this form?

[andydd]

I thought this was the norm when taking out an interest only mortagage, not sure of the relevance now though and what would happen if you didnt sign.

[dx100uk]

what penalty charges and insurances did they make you take out?

 

if this has been sold so many times something stinks.

 

dx

[toxicdebt]

Im not sure. How do I find out?

 

I was under the impression that my monthly payments were just the interest. Its a fixed tracker at 1.5 % above base for the life of the mortgage, which is why I assumed they kept selling it on due to the amount I pay dwindling as the BOE base rate continued to fall.

[dx100uk]

es you are prob right?

 

have you ever sent anyone an SAR to get all the statements?

 

or do you have them already?

 

dx

[Klandestine]

My thoughts would be the same as yours - they are trying to cover themselves if you later went on to say you were mis-sold the mortgage.

If the form really does just ask you to sign to confirm that it is your responsibility to pay it off at the end of the term then you already understand this so I don't think that it's excluding yourself from any future (honest) complaints which may arise in the future.

 

Although at the same time I don't think you are obliged to sign it.

 

if this has been sold so many times something stinks.

 

I think you've mis-understood something here dx.

Edited April 8, 2014 by Klandestine

[PaulW922]

I don't think you MUST sign - on the other hand is there any harm? Well, there might be if the mortgage was sold to you on the basis that it would be ok as property price will just go up and up. If you took out the mortgage fully aware of the consequence it probably does not matter.