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On 31 Oct 1996, we borrowed £65 000 over 25 years from Direct Line Mortgages (DL) on a repayment basis. When our mortgage lender became aware that we already had an existing endownment (£21 600 with Scottish Widows), DL suggested that £21 600, was being "paid twice", and so upon their advice, set it up so £21 600 was an interest only element with as far as I was concerned a 25 yr term. A few months later I do recall them contacting me about having the wrong date for the maturing of the endownment, but do not remember signing any paperwork (more about this event later).
A few years later DL sent us a letter explaining that life cover was no longer mandatory only advisory for all mortgages, and it was at about this time that I started having problems with the endownment being predicted to have a shortfall and could get no help from the seller, however, that's a seperate matter possibly for another day. We were now also on benefits due to my wife's long-term ill health and I was no longer working, we were, and still are getting mortgage interest payments from the DWP.
Coming forward to last summer (08), I contacted DL to inform them that the endownment was likely to be short by about £6-7000. DL appeared to be okay with this, informing me that if I wished I could make up the shortfall from savings or carry on paying as normal (interest-only) for whatever was the shortfall amount. The endownment maturity date passed and DL completed their annual review, 30 Sept 2008, without any reference made to it. In mid-november, months after maturity of endownment, I still had heard nothing from either Scottish Widows or DL, so I phoned DL to be informed that my endownment had not finished yet! Having put DL straight they finally received the endownment proceeds on 24 Dec 2008.
Jan 09 a claim for the shortfall was made by DL upon which payment our deeds would be released! When I phoned to say that we had a repayment mortgage (approx £38 000) which still had another 12+ yrs to run they admitted it was a mistake, but did agree that as we had no savings, we were to carry on paying as normal, which we have done to date.
A short while later we received a phonecall from DL insisting that part of our mortgage, approx £6 500, is out-of-term and the situation needs rectifying. We have repeatedly questioned this fact, by phone and in writing, believing that all the mortgage was over 25 years (2021), and keep being told that we signed (end of 1996) a document for this change, but they are unable, 'at present', to send us a copy of this paperwork, with still no reason why.
An underlying problem to this situation is the DWP stance, who have informed me that they will look at any paperwork we sign before making a final decision, but are most likely to consider it a new mortgage and would stop paying us any mortgage interest at all immediately.
This situation has appeared to have moved on, in june 08, a phone call from DL threatened to pass us to their legal services department, unless we pay this amount or sign new terms for it, and 11 Aug 08 we were given 14 days in writing before they pass it on.
I am about to respond to DL to remind them that we are still waiting to see this paperwork, we are still paying and have never missed a payment to them and to remind them that my wife is long-term ill and is also having to receive councelling to deal with mental issues, which their pressure tactics are not helping.
Thank you for your time in reading this, and can anybody help us achieve a resolution to this matter please?
A few years later DL sent us a letter explaining that life cover was no longer mandatory only advisory for all mortgages, and it was at about this time that I started having problems with the endownment being predicted to have a shortfall and could get no help from the seller, however, that's a seperate matter possibly for another day. We were now also on benefits due to my wife's long-term ill health and I was no longer working, we were, and still are getting mortgage interest payments from the DWP.
Coming forward to last summer (08), I contacted DL to inform them that the endownment was likely to be short by about £6-7000. DL appeared to be okay with this, informing me that if I wished I could make up the shortfall from savings or carry on paying as normal (interest-only) for whatever was the shortfall amount. The endownment maturity date passed and DL completed their annual review, 30 Sept 2008, without any reference made to it. In mid-november, months after maturity of endownment, I still had heard nothing from either Scottish Widows or DL, so I phoned DL to be informed that my endownment had not finished yet! Having put DL straight they finally received the endownment proceeds on 24 Dec 2008.
Jan 09 a claim for the shortfall was made by DL upon which payment our deeds would be released! When I phoned to say that we had a repayment mortgage (approx £38 000) which still had another 12+ yrs to run they admitted it was a mistake, but did agree that as we had no savings, we were to carry on paying as normal, which we have done to date.
A short while later we received a phonecall from DL insisting that part of our mortgage, approx £6 500, is out-of-term and the situation needs rectifying. We have repeatedly questioned this fact, by phone and in writing, believing that all the mortgage was over 25 years (2021), and keep being told that we signed (end of 1996) a document for this change, but they are unable, 'at present', to send us a copy of this paperwork, with still no reason why.
An underlying problem to this situation is the DWP stance, who have informed me that they will look at any paperwork we sign before making a final decision, but are most likely to consider it a new mortgage and would stop paying us any mortgage interest at all immediately.
This situation has appeared to have moved on, in june 08, a phone call from DL threatened to pass us to their legal services department, unless we pay this amount or sign new terms for it, and 11 Aug 08 we were given 14 days in writing before they pass it on.
I am about to respond to DL to remind them that we are still waiting to see this paperwork, we are still paying and have never missed a payment to them and to remind them that my wife is long-term ill and is also having to receive councelling to deal with mental issues, which their pressure tactics are not helping.
Thank you for your time in reading this, and can anybody help us achieve a resolution to this matter please?
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