Just wanted to share my story and gather any opinions or similar stories.
So I have a dreaded "Together Mortgage" (interest only) which I took in Feb 2007. Like many other people I went through some financial hardship in 2008/9 when the GFC bit. I couldn't afford my monthly payments and so Northern Rock offered me a "mortgage concession agreement" for 12 months where as I was only required to pay a certain percentage of my interest only payments.
I don't remember the exact amounts but let's say my payments went down from around £550 per month to around £250 per month. The agreement was that the £300 that I wasn't paying would accumulate in arrears until the arrangement ended (I extended it after 12 months for another year) at which point the arrears would be capitalised/put back into my mortgage for me to pay off over the remainder of my mortgage term.
Great. This was a big help at the time.
However...... When the 2 year period was up NRAM decided that as they no longer offer that same agreement I had to pay back all of the arrears (over £6k) immediately.!!!
I argued this and they basically told me that as I had no proof of the agreement then they would take me to court and repossess the house unless I come to an arrangement with them to pay back the money ASAP. The agreement they came up with would increase my monthly mortgage payments from £400 to over £1000 per month...!
I now live overseas and so don't have any paperwork to help argue my case, the judge wouldn't postpone the hearing so that I could be present and ruled in NRAMs favour. They won a suspended repossession order that would only be enforceable if i don't meet my new payments. (I managed to get them don't to £850 per month).
I laid all of the money back early but the order still stands for a few years.
I recently asked the for consent to let the property out while I'm away. The max rent I will get is £450, my payments are £670 and they want £750 to give me permission.
They also told me that The £750 fee will be added to my mortgage balance... How can they do that if the no longer borrow money? This really annoyed me as they wouldn't/couldn't add my arrears to the mortgage as per their agreement...!
Well lately I've been reading about the CCA issues with loans over £25k and I'm wondering if I may have a case for them to answer.
Like I say, I don't have all my paperwork with me at the moment but I'm in the process of having it sent to me and I'm also going to apply for SAR.
I'd be really interested to hear from anyone who has a similar story or even from anyone who could offer any advice.