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In 2015 NRAM sold a portfolio of mortgages to Pepper UK/Engage Credit. I have an interest only mortgage and have never been in arrears. However, I had a £20k loan secured against my property running alongside the mortgage. This loan was due to be paid of in full in April 2014. I Wrote to NRAM explaining I didn't have the funds and we were looking at other options, meanwhile my mortgage then transferred to Pepper UK. Engage Credit constantly hounded me for the repayment of the loan and my blood pressure went through the roof. I thankfully managed to draw down £12k from my private pension and my son kindly lent me £7k so I paid off a large proportion of the loan with a view to my house being sold in the summer to my son. This has not been the case as he is difficult to pin down due to his job in the RAF and is often out of the Country. Mortage offer is now going through and we are awaiting the offer to come back for. His appointed building society. (Sorry if I am going on too much but just to paint you a picture). Last Friday I received another call from Engage Credit chasing me for the final £5.6k and her tone was less than pleasant. I explained that house is going through sale process and she requested proof of this. My problem is my F.A. cannot provide proof right now as only a verbal agreement until we exchange - hopefully this month. She also said that Engage will commence litigation on 18 Nov and I am messing myself as I am worried they can repossess my home! Can someone please reassure me. I am also off work for last 10wks with a prolapsed disc so I would struggle to go to court anyway and this is really panicking me. Any useful constructive advice would be very much appreciated. Thank you.
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Re: Breach of contract re secured loan
Can you clarify whether this was a Northern Rock Together Mortgage (it sounds like it was).
When NRAM sold it to Pepper/Engage I presume they sold both both the secured element (the mortgage due to expire in 2014) and the unsecured loan which ran alongside it because what's not clear is whether you've been paying down the unsecured loan or the mortgage so can you explain that.
It's not your fault I can't understand the facts
Di -
Re: Breach of contract re secured loan
Hello Diana, yes it's Northern Rock as you mentioned above, yes, both products were sold to Engage Credit (bullies). The secured loan was actually due for repayment in April 2015 not 2014 my mistake. However, I did initially inform NRAM that I was not able to meet the full amount within the time. They were very reasonable actually but then Engage got involved and it's been a nightmare! I paid interest only on the loan throughout the 10years - I am single so you can imagine it's difficult to manage a repayment mortgage and utilities these days! But I never failed to pay! Forgot to mention, mortgage does not expire for another 7years and is currently proceeding through sale to my son. MichelleComment
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Re: Breach of contract re secured loan
Ah, so the loan was a standalone secured loan for a shorter term than the mortgage. That's the loan which has expired (not the mortgage).
Do you want to sell your home to your son if it's got seven years left to run on the mortgage or do you feel under pressure from the lender to clear the secured loan?
I would be surprised if Engage carry out their threats of repossession at this stage, but it may make sense to make a formal complaint in writing about the way you've not been treated fairly while this issue is clearly in the process of being resolved. If they don't back off then refer them to the Financial Ombudsman Service.
DiComment
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Re: Breach of contract re secured loan
Yes, I want to sell house to my son as I am looking to retire May 2017 and it makes sense to clear the whole mortgage and loan. I shall remain living here as he is based in London and is due to be posted abroad for 6 months next March so need to sort this year and have some peace of mind. Thank you for all your assistance Diana... It is very much appreciated. Incidentally, Engage didn't threaten repossession just litigation but wasn't sure whether this would mean they would go for possession of my home for such a small amount. MichelleOriginally posted by Diana M View PostComment
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Re: Breach of contract re secured loan
From what you say you seem to have arranged a perfect plan with your son to suit both your futures (Inheritance Tax issues sorted possibly unless you remain living in the property) so don't let Engage derail that vision with their telephone nastiness.
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