Mortgage company are trying to get possession of my home by the court.

[Fielder]

I have a problem with my mortgage company.

I have been through all my statements and all the charges

and missed interest payments (interest only mortgage) have been added to initial mortgage and charged interest on.

Mortgage company are trying to get possession of my home by the court.

I have calculated the amount I owe them for missed mortgage payments,

the rest they want to take from me is for charges (mostly illegal)

 

I have some questions;

Firstly, I read somewhere on this site that I cannot be repossessed for charges. I can't find it now, but, is this true?

 

I cannot find stated in my t&c's that arrears will be effectively capitalised along with the charges (for arrears) and charged at the full interest, can they do this lawfully?

 

I can just about manage to clear the arrears by the end of June, but the charges and interest are enormous.

 

 

The amount increases my mortgage by £11,000 and I am being charged interest on this.

I really need some reassurance as the date is very close.

Please can anyone help with some answers?????

[BRIGADIER2JCS]

It is true that an account should not be defaulted if the default sum consists of charges without which the account would not have been defaulted.

This applies to any regulated account.

As to capitalising it ts a commonly used process, but I am unsure of the validity in your case, this is not in my field of expertise, so I will alert the experts on the site team for you.

 

Please allow time for a reply as it's Sunday.

[maroondevo52]

Thread moved to Mortgages-and-Secured-Loans Forum, please continue to post here regarding this issue.

[Fielder]

Thanks Brigadier, so if I pay the actual mortgage arrears, and not the whole sum they're asking for, which includes charges, they cannot repossess?

[Fielder]

Also, when I asked them in the past to capitalise the arrears, they refused!

Someone said on here it's because they can keep charging excessive fees if the account is in arrears.

[Peterbard]

It is true that an account should not be defaulted if the default sum consists of charges without which the account would not have been defaulted.

This applies to any regulated account.

 

I find this interesting, is there authority ?

[ims21]

I think we need to step back a minute and get some more information.

 

You said this

 

I really need some reassurance as the date is very close.

Have you had a notice of eviction and if so what is the date?

 

Which company is your mortgage with?

 

Have you done a spreadsheet to work out what the unlawful charges are and the interest on them?

 

As they are unlawful penalties they can be reclaimed and certainly they should not be taken into account when presenting a figure of mortgage arrears.

 

Just to add.....if you have received an eviction notice then you are in the wrong forum and we will need to get you moved again.

[Fielder]

Thanks ims21,

I haven't received a date yet.

[BRIGADIER2JCS]

I find this interesting, is there authority ?

 

Yes there is.

[Fielder]

Hi Brig,

Is the authority the (I can't remember the name!) over seeing body?

[citizenB]

MCOBS, is that what you are looking for ?

[citizenB]

If you believe your account has had excessive charges levied then you might be able to reclaim them back.

 

You would need a list of the charges - do you have these by way of statements ? If not, then you should send a Subject Access Request to the mortgage company - this is a request for ALL data they have in respect of your financial relationship with them. It will cost you £10.00 and there is a draft letter in the CAG library.

 

Once you have all the statements then you should complete one of the CAG spread sheets and send the attached letter asking for the charges back.

 

[ATTACH=CONFIG]44668[/ATTACH]

[BRIGADIER2JCS]

Information Commissioners Office Technical Guidance on Defaults.

[Peterbard]

No#i don't think it will be in there, BCOB generally deal with banking practice, but if someone could indicate the section, I would certainly be interested in seeing it, as I presume would the OP.

 

If the charges are unfair that is a different mater of course

[Fielder]

I will do that, thanks citizenB.

 

 

I do have the statements and have listed the charges on a spreadsheet and will send the letter you linked me to.

 

But at the moment I would really like to sort out the fact that they have added the arrears to the initial mortgage amount

and so charged interest and increased the monthly payment.

 

Any advice?

[Peterbard]

Information Commissioners Office Technical Guidance on Defaults.

 

Yes Brig that would be in connection with registering a default on the credit file, not commencing enforcement for arrears on an agreement.

[Peterbard]

Interst only mortgages are a nightmare was this GE money by any chance, and can I ask when it was taken out.

[Fielder]

No it's not GE Money, but another sub-prime lender. I don't want to mention them at the moment as I am worried that they may be watching!!

The mortgage is six years old.

[Peterbard]

No it's not GE Money, but another sub-prime lender. I don't want to mention them at the moment as I am worried that they may be watching!!

The mortgage is six years old.

Probaly wise.

 

Has the mortgage still got time to run before the principle repayment is due under the agreement ?

[Fielder]

Yes, about fifteen years

[ims21]

Ok

 

I'll move you to the home repo forum in a minute.

 

If/when an eviction notice turns up you will need to apply to the court for a hearing to suspend the eviction.

 

You might like to read this guide by Ell-enn which will give you a lot of information and the forms you will need.

 

When the lender presents the arrears figures to the court on which they base their case for repossession, they should not include the charges. If they do then you should bring that to the attention of the judge.

 

You will also need to provide evidence to the judge that you can pay the normal monthly mortgage amount plus something towards the arrears. I note that you say you could clear the arrears by the end of June. Is that still the case? If you can clear the arrears then there will be nothing on which they can argue a case for repossession.

 

As has been said, you should start the process of reclaiming the charges and associated interest on the account.

 

EDIT...Here'the guide I mentioned http://www.consumeractiongroup.co.uk/forum/showthread.php?325527-CAG-guide-Are-you-facing-eviction-or-repossession

[ims21]

Thread moved to the home repo forum.

[Fielder]

Thanks ims,

I did think that I could repay at the end of June, but I miscalculated the amount and it's probably more than I can afford.

I can catch up with the recent missed payments, but not all the arrears. Unfortunately!

 

Forgot to say, what about the increased monthly payment due to adding the arrears and charges to the initial mortgage?

[ims21]

You will need to be able to show that moving forward you will be able to pay each normal monthly instalment plus some towards the arrears on top of that.

 

The guide I linked you to should mention the Norgen case whereby arrears can be settled/paid off over the remaining life of the mortgage (although most people would probably want to get the arrears brought up to date sooner).

 

Have a read of that guide.

 

On the subject of the charges, lenders will always add the charges, solicitors costs etc to the account and charge interest on them. As has been said though, they are not part of the arrears on the account and if they have been included in the arrears figure presented to the court then that is not right.

 

I'm going to send an SOS to Ell-en to look in on this thread for you.

[Peterbard]

I think you need to get someone to look at the contract. Adding default fees to the principle ? This would have to be mentioned in the T and Cs I would have thought as would charging contractual interest on them.