Can Paratus (mortgage company) repossess our buy to let when it is on the market?

[Franvp]

Hi all. My mother and I have a buy to let mortgage with Paratus. It is nearing the end of its mortgage term. Paratus have told us they will not/ cannot extend or remortgage the property. Unfortunately, due to difficult personal circumstances (my mother is recovering from cancer) We have no income to get another mortgage. The property has no equity and loan to value is more or less equal. Paratus say if the property is not sold by the end of the term, even if it's on the market they will repossess the property and will not extend the term. This seems unfair as we have always paid on time and we have exceptional circumstances. Are they allowed to repossess if we are doing everything we can to sell? Any ideas on what we can do please? Thanks.

[Snoopy1948]

Re: Can Paratus (mortgage company) repossess our buy to let when it is on the market?

Tricky one I admit. But I suspect Paratus are probably within their rights no to extend the mortgage contract, which is tantamount to a new mortgage, especially as you cannot demonstrate being able to fund a new mortgage.

I think you should force the issue that a repossession and a forced sale may leave a shortfall on what you owe and it may be in their interests to extend the term for a minimum period while you attempt to sell. Even then, with costs, you may experience a shortfall. I assume that you have been funding the mortgage from tenant rent?

Bottom line here is that you may well have to accept repossession if Paratus will not budge. The problem there is that you lose control of the situation and a shortfall may be inevitable and beyond your control. I am reading that Paratus are an asset management company and not interested in new business and from what others are saying, this company is hell bent on liquidising their assets and ignore any debt chasing guidelines. But remember, they have to get a repossession order from a judge so if you ensure good representation at that, the judge may decide repossession is not the way to go.

[Franvp]

Re: Can Paratus (mortgage company) repossess our buy to let when it is on the market?

Thank you very much for your reply. I'm going to contact them again and try my best to convince them repossession is not the best solution.