Thread: Capstone advice please

Hi ,we got into difficulty with our mortgage last year , Capstone agreed to re-mortgage to lower the monthly payment but with an extended term.
After about one month i recieved a letter saying that i still had arrears on the original mortgage which were not included in the re-mortgage and was required to pay this off.
This i could not do as it ammounted to around £3000 , this then went to court and the outcome was to pay the normal monthly payment + £50.00 off of the arrears.
This i am managing OK with no missed payments since then.

On my last quarterly statement i noticed that i now owe more on my mortgage than originally borowed even though i have made a full years payments , this is a capital & interest mortgage.

I think this is due to the litigation + other charges that Capstone have put on the account and also a letter i recieved said they had miscalculated the interest on something which added another £700 or more to the account.
Is this fair and should the mortgage be going up ???

Please help

Rgds

Nicurro

OK,theyare also adding £50 / month as a management charge .Is it posible to claim charges back from Capstone??

LET THE SCUM KNOW THAT WE ARE NOT TAKING THIS ANYMORE

http://www.consumeractiongroup.co.uk...ages-call.html

Get ya bum into gear and make a complaint to the fos.

I can't quiet understand what you mean about the re-mortgage. It should have taken into account all the arrears and if not then how could they take you to court as surely these would now be unsecured if excluded from the re-mortgage?

The interest you refer to is Interest on Arrears Reversal which they have fluffed up on and refer to as a 'complex error' and something they don't want you to question or that they think you'll understand. They also make it look like an isolated incident when it was in fact their system error from day one and affects everyone who has arrears.

The £50 charges are unfair and Capstone should have taken this into consideration before accepting payment off the arrears of £50. They agreed to the court order knowing that your position could not be improved merely sticking to it as the charges + interest would leave you owing more than what you started with.

The OFT have informed me of their usual we can't investigate individual complaints etc but in a highly personalised response they said they ARE interested in any evidence I can provide of collective consumer detriment in respect of the consumer credit acts 1974 and 2006. I will start a thread for this very purpose. Please post here in the meantime!

Can you post a bit more info. please Nicurro.

You had mortgage A with arrears.
You then took out mortgage B on new terms.
Mortgage A would then have been settled and no longer exists.
You then find out you still have £3000 owing.
The arrears are not included in mortgage B.
They then take you to court for what I suspect is a suspended repossession order, for those previous arrears which are not included in mortgage B.

Have I got that right so far?

Ditto the response from Crapstone please Nicurro.

1. If they remortgaged your old account to a lower payment over a longer term there are 2 implications. 1, you will pay more interest in the long term, 2, they should have remortgaged the whole debt when you signed the new mortgage contract.

If they didn't when they applied the funds to redeem the old mortgage, they have to be applied to the arrears balance first, then cost/interest then capital, so at worst you would have a capital balance left.

If they didn't do this and subsequently took you to court then they did so without legal justification, I'd need to see the docs and understand the circumstances.

Can you add more info please.
ta

Meph

HI Memphistopheles & Crapstone , when i spoke to them after i recieved the court letters they pointed out that in one paragraph on the remortgage doc it did say that this didnt take into account the arrears , when i asked for the mortgage i was led to believe that due to my arrears on the mortgage they would agree to extend its term etc with the arrears included , i thought that it was to get the arrears sorted at the same time but this was not so.
What info do you require from me?

Originally Posted by nicurro

HI Memphistopheles & Crapstone , when i spoke to them after i recieved the court letters they pointed out that in one paragraph on the remortgage doc it did say that this didnt take into account the arrears , when i asked for the mortgage i was led to believe that due to my arrears on the mortgage they would agree to extend its term etc with the arrears included , i thought that it was to get the arrears sorted at the same time but this was not so.
What info do you require from me?

Hmm, I think you've definitely got an argument here against them, specifically with regards to allocation of payments. I would suggest a faxed letter to them explaining where in your documentation it points out that capital will be cleared in favour of arrears, then I suggest logging an appeal with the court to have the order set aside on the grounds that when the remortgage happened, the company didn't clear the full balance o/s and should have allocated the monies in a different way.

When they did the remortgage, whay documents did you sign, I assume a new mortgage offer letter, but did you sign a new mortgage deed?

If so then technically your old mortgage may actually be unsecured if they replaced the first legal charge with a fresh one and I'm certainly sure they didn't have the right to chase for the arrears as you cleared them with the remortgage.

Can you post a copy of the new mortgage offer doc please and the legal charge if there was one and the T&C's.

Ta
Meph

You need to get a Breakdown of the arrears. There may be charges but even so these should have been added to the mortgage and any cross-over ones wouldn't be £3000.

It seems your whole point in re-mortgaging was to capitalise the arrears, not just extend the term, otherwise what's the point as the interest will swallow anything you could be putting towards it.

I'd start from scratch and send them an SAR. Look through all your records and get them in order pronto.

When and how did you re-mortgage? And do you have a suspended repossession order?

Hi Crapstone, yes i have a suspended order in place . I remortgaged when we started to struggle as they were unwilling to accept my monthly offer for repayment of arrears.
When we went to court the remortgage had just taken place and even their solicitor was unaware that a remortgage had taken place and all payments had changed.
I will post the remortgage papers and any others i can find but it will take a bit of time to do this.

Nicurro

It sounds like you have good grounds to contest this. Are you sure it was a remortgage or were the arrears supposed to be capitalised?

Don't worry too much as a few of us know just what a cowboy company Capstone is. I'd certainly suggest the fos for getting the charges refunded even if you aren't sure what the total is.

All the things you need to look at can seem overwhelming and there may be things you don't understand. Don't be afraid to ask here if you aren't sure.

HI Mephistopheles , i have attached the original letter i sent to them for help , also the new mortgage agreement & the statement of account since 2007.
The mortgage offer stated that the arrears was £2700+ but now the arrears balance is £3800 ish , i see now that it is still the same motgage account number which i thought the Breakdown would be seperate as i have changed the T & C of the mortgage.

Please advise what to do , also what is the legal charge doc you asked for ??

thanks in advance.

Nicurro

Hi , yes i was aware of the buildings insurance..

Originally Posted by nicurro

HI Mephistopheles , i have attached the original letter i sent to them for help , also the new mortgage agreement & the statement of account since 2007.
The mortgage offer stated that the arrears was £2700+ but now the arrears balance is £3800 ish , i see now that it is still the same motgage account number which i thought the Breakdown would be seperate as i have changed the T & C of the mortgage.

Please advise what to do , also what is the legal charge doc you asked for ??

thanks in advance.

Nicurro

Hi Nicurro,

sorry for not been able to reply sooner.

Ignore my request for the legal charge the info you have given makes it irrelevant. So you are aware, the legal charge is the document you sign that binds the mortgage to the property, also called the mortgage deed. Its likely though not certain you will have signed with your solicitor.

Looking at the docs i've got 2 comments.

1) Whoever told you you where remortgaging told you complete crap

2) I'm not 100% sure that what they've done is in accordance with FSA guidelines.


Here's why.

One of the items you have posted is the KFI (Key Facts illustration) this is the document required by regulation that has to be sent when they are selling you a new mortgage.

Interestingly enough though, that isn't what they've done, look at the section where it says 'What you have requested'?

You will see from this you have requested the loan term be extended from its current position to over 30 years.

What does this mean? Well it will drop your payments, definitely as you are paying the same amount back over a longer period, but it also means they will earn more interest from you as it takes longer to repay, but the killer point from what you have said earlier, is 'YOU HAVE NOT REMORTGAGED'.

They have simply changed the terms of your existing mortgage over a longer period.

That's why you have then been taken to court as you are still in breach of the original agreement, all this agreement did was vary the terms of the previous.

That makes my previous posts moot, you still have the same mortgage, just over a longer period and what they have done is legally correct, though you may have a misselling case to take to the Ombudsman if they have propostioned it as a remortgage, it definitely isn't.

What can you do, ok brass tacks time.

Can you afford the payment in the figures in these documents?

Can you afford the payments plus an amount towards the arrears?

You have said they have taken you to court over the arrears and agreed a suspended order on them, what where the grounds?

This is what you must pay to ensure they take no further action.

As to whether what they have done is correct or not, well here's the bit you may not like.

They have told you via 'KFI' what they where doing with your mortgage, it is understood that you understand this document or have taken advice on it if not, before you sign any other documentation.
As such, they have told you in writing what they intended to do, it may have been represented differently and you may find some traction if you approach them on this, but ultimately it comes down to the documentation.

You have agreed to extend the term, they have told you thats what they where doing and then have done it, while you could claim misselling, in my opinion I don't think the ombudsman would listen, though you could try.

So you are in a position of this is your new mortgage and payment. Maintain this payment and the extra agree under the suspended order and they can do no more.

Don't maintain it and I guarantee they will take further action, read bailiffs and eviction.
You need to be very honest with yourself, can you maintain those payments and i'm not talking from time to time, I'm talking every month?

Mail me back or post with your thoughts.

Meph