Capstone/SPML

[Andrew66]

Had a letter from Capstone's solicitors on Friday stating that they would be going for repossession unless I paid £4900 arrears. About £2900 of this is Capstone's fees, about £2000 is actual arrears. My discounted rate finished in July, and as my credit history shows arrears I can't find another mortgage. The monthly payment went from £638 to £885. My house is up for sale with about 40K of equity in it, but no-one is buying at the moment. Any advice from anyone would be gratefully received.The letter stated at the end that repossession is alast resort. Really? Seems like SPML use it as a first resort!

[Ell-enn]

Hi there, sorry to hear you find yourself in this position. Are you able to make even a small payment towards the arrears each month?

Kind Regards

Ell-enn

[Andrew66]

.Hi there and thanks for the quick response. Quite difficult now its gone up to £885.

[Ell-enn]

Hi there, I would advise you to ask Capstone for a statement of your mortgage from inception to date - this will show the true arrears.

As your arrears are around £2k even making an extra payment of £25.00 per month would clear the arrears in 6.6 years. If Capstone are determined to take it to court, there is case law we can use in your defence that allows the court to spread the arrears over the lifetime of the mortgage if necessary (although usually 5 -6 years is more likely, unless the arrears are vast).

You then need to write to them enclosing an income and expenditure sheet showing that you can only afford a little extra each month. you can download a budget sheet here: National Debtline England & Wales | Personal Budget Sheet.

If they do proceed with court action, then you can at least prove you have tried to come to an arrangement with them.

Send your letter by recorded delivery and keep the receipt together with a copy of your letter and budget sheet. You may need to prove that they received it!

Kind Regards

Ell-enn

[Andrew66]

Spoke to Capstone, have arranged to pay an extra £150 per month. They said it would probably still go to court but they wouldn't go for repossession. So I've got some breathing space.

[Ell-enn]

Can you afford to pay £150 per month? You shouldn't agree to more than you can afford. If it went to court the judge may decide given your income and expenditure that £150 is too much.

Capstone however, will try to get you to agree to anything that makes it better for them

If they do take it to court we'll deal with it



Kind Regards

Ell-enn

[Andrew66]

Thankyou, your support and help is most welcome.

[Ell-enn]

No problem Andrew, just don't want to see you pressurised into paying more than you can manage. If you're going to struggle to pay that let us know and we'll help with a letter.

Ell-enn

[Andrew66]

I might struggle with that, so would appreciate a letter to help. To be honest considering the way they deal with people the lady I spoke to was surprisingly sympathetic. Not like some at that place I've spoken to before.

[Ell-enn]

Hi there, I'll draft something up for you and let you have it tomorrow - is that OK?

Ell-enn

[Andrew66]

Yes, that's fine. Thanks.

[Ell-enn]

Hi Andrew,

Draft letter below - you just need to fill in the gaps/make adjustments where necessary.


Date:

Name & Address of Mortgage Company
(Ring them up to get the right address & Department)



Dear Sirs,

Re: Mortgage Account No.

I am writing regarding my recent telephone call to your customer services department regarding the arrears on the above account.

In order to make payment towards these arrears I offered the sum of £150.00 per month in addition to my normal monthly payment. However, on reflection, I feel this commitment was made when I felt under pressure to make an offer which would avoid further action.

Having completed an income and expenditure exercise (see affixed budget sheet), it is obvious that I cannot afford £150.00 per month. I am therefore offering £XXX per month, which I feel will be more manageable and will be able to commence payments on (date).

I am sure you are aware of the Civil Justice Council Consultation Paper - Mortgage Arrears Protocol where lenders are required to assist, in any way possible, customers who are experiencing financial difficulty and to consider alternative payment proposals which would alleviate the difficulties. Therefore I trust you will take this into account when considering my offer of payment.


Yours faithfully,



XXXXX

download the budget sheet from here: National Debtline England & Wales | Personal Budget Sheet print one out to practice on first to make sure you arrive at the right sum left over to pay arrears. Then complete a final copy and affix to the letter.

Send by recorded delivery (preferably special delivery) and make sure you keep a copy of the letter, budget sheet and the receipt for posting.

Any questions, just shout

Kind Regards


Ell-enn

[Andrew66]

I'm playing around at the mo with the budget sheet, should everything balance accordingly or should I falsify anything to make it balance?

[Andrew66]

My wife gets monry from her parents each month, should I include this?

[Ell-enn]

Hi Andrew, when filling in he budget sheet you should make sure that the amount left over (after everything has been taken into account) is the amount you can afford to pay towards the arrears. Utility bills are going to be higher as winter approaches and you need to make allowance for that.

As the money your wife gets from her parents is not what is known as a guaranteed income - I would leave it out.

If this does go to court the judge would base the amount you have to pay on the budget sheet so it's best to make sure you offer what you can afford and not what you think Capstone want to hear.

Kind Regards

Ell-enn

[Andrew66]

OK I'll have a play with it.

[Andrew66]

Is it right that SPML are/were owned by Lehman Brothers? I guess someone else will take over SPML then.