Mortgage provider threats

[vez]

Hi I have a mortgage with Woolwich (now Barclays) and as I have been on Income support since 2005 I had accrued arrears of about £6000. Over the last 18 months I have tried to find a way to compromise with them. I have asked to add it on to the end of the mortgage, and increase the mortgage term, I have asked to be transferred to a mortgage with lower interest rates as mine is high, but everything I suggest they refused. When my children started school last september I managed to find a part time job, enabling me to come off benefits and I am now on working tax benefit. Unfortunately due to loss of council tax benefit and other related benefits I am really not much better off, but I had a visit from an independant financial/debt advisor. He suggested to them everything `i had already suggested and they again refused. They asked for more than I can afford a month. He advised me to pay an extra £100 a month until they reconsidered my offer. This was before christmas and I had heard nothing until recently. They have come back to me and said that unless I pay and extra £350 a month they will take me to court. This is an impossibility and I am beside myself with worry that the house will be repossessed and my 3 children and myself will be homeless. Since I have been working part time I have religiously paid my payment every month and an extra £100. They will not even consider any help, and there is no reasoning, they just say we will take you to court if you don't pay. Please can anyone help me as I don't know what to do next. Thank you.

[leclerc]

Re: Mortgage provider threats

Ask them to look into your case under section 9 of The Lending Code with relates to financial hardship.

http://www.lendingstandardsboard.org...endingcode.pdf
Page 28. It does not appear as though they are not budging. Realistically you need to work out how much extra you can financially afford to pay and put that to them.

[vez]

Re: Mortgage provider threats

Thanks for the reply. I cannot realistically afford more than the £100 that I am paying them extra per month at the moment but they said that is not enough. They have also taken loads from me in charges.

[leclerc]

Re: Mortgage provider threats

Thanks for the reply. I cannot realistically afford more than the £100 that I am paying them extra per month at the moment but they said that is not enough. They have also taken loads from me in charges.

Charges can come under financial hardship so put something in writing stating everything and tell them that you need help. That covers part of your obligations under the lending code section 9. Ask them to treat you as a customer in financial hardship because if they insist on £350.00 a month then that means that you would have insufficient funds to be able to feed and clothe your children and pay your bills. You need to keep a copy of any letter you write to ensure that if needs be you can take this further.

I would add that you need to look at all your finances and cut out anything that is not absolutely essential for your well being.