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HI,
Prior to Lockdown I was £3,500 in arrears with my mortgage (2 months) I applied to my lender Together (Yes I know a big mistake) for a payment holiday of 3 months (this was extended to 4 months) I agreed that I would pay the arrears off in full which I did, and I have also recommenced repayments on the account in July as agreed. I also paid an extra £100 as I wanted to keep the account in front.
Yesterday I received a letter from Together saying I was £4265.57 in arrears and that possession action would follow. On querying this Together said and I quote
In accordance with government guidelines, Together placed your account into a ‘Payment Deferral’ this essentially capitalised any arrears which accrued during the period of the deferral. Any payments that you made towards your account during the deferral period must go against the payments that were capitalised. The guidance further states that the Payment Deferral period cannot be used to correct or improve an arrears position on the account. Therefore, the arrears that are stated within the letter dated 23 July 2020 are the arrears that accrued before the Payment Deferral period began. Your arrears currently stand at £4,265.57.'
So basically, despite paying off the arrears and restarting repayments I now find myself further in arrears than I was prior to lockdown and the agreed payment holiday. (capitalisation)
Is this correct, and does anyone have a copy of the Government guideline to which they refer?
Thank you.
Prior to Lockdown I was £3,500 in arrears with my mortgage (2 months) I applied to my lender Together (Yes I know a big mistake) for a payment holiday of 3 months (this was extended to 4 months) I agreed that I would pay the arrears off in full which I did, and I have also recommenced repayments on the account in July as agreed. I also paid an extra £100 as I wanted to keep the account in front.
Yesterday I received a letter from Together saying I was £4265.57 in arrears and that possession action would follow. On querying this Together said and I quote
In accordance with government guidelines, Together placed your account into a ‘Payment Deferral’ this essentially capitalised any arrears which accrued during the period of the deferral. Any payments that you made towards your account during the deferral period must go against the payments that were capitalised. The guidance further states that the Payment Deferral period cannot be used to correct or improve an arrears position on the account. Therefore, the arrears that are stated within the letter dated 23 July 2020 are the arrears that accrued before the Payment Deferral period began. Your arrears currently stand at £4,265.57.'
So basically, despite paying off the arrears and restarting repayments I now find myself further in arrears than I was prior to lockdown and the agreed payment holiday. (capitalisation)
Is this correct, and does anyone have a copy of the Government guideline to which they refer?
Thank you.
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