*****Need Some Advice ASAP*****

[mrsfoot]

Hi all

 

Helping a friend who has been struggling to pay his mortgage. He has found someone to buy it from him as his repayments shot up from £579 to £779 a month. Now heres the story

 

Took the 3 yr fixed rate deal in October 2005. In March this yr he got a letter stating his repayments would be increased to the above amount. We queried this with the lender who advised him the fixed rate began on the date of the offer and not on the date of signing. The offer was made in April 2005, but due to the previous lender messing around it was not signed till Oct 05.

 

So I wrote to them on his behalf regarding the ERC which is a normal 3 yr tie in, asking them did this also begin the day of the offer, and he got a reply saying no that began on the day of signing!

 

So where does he go now? Its all one way...the rate went up 3 yrs to the day of the offer but the erc is in force till the 3yr anniversary date.

 

Is this unfair? Yes of course it is but legally?? Does anyone have any ideas? This mortgage is with SPML. All ideas welcome!!!

 

Mrsfoot

[Bona]

So if he sells before October he has to pay ERC

[mrsfoot]

Hi Bona...yes he pays ERC if before OCtober. He has a seller but you know how these things ttake time.

 

He has now received an eviction notice from SPML which gives him 1 month to leave the property. Am I right in thinking there should have been another hearing in order to issue the warrant for eviction (it was suspended in September last year) or can they just do this without a hearing?

 

Any help would be brilliant

[Ell-enn]

Hi there, he needs to submit an N244 form to the court asking for a hearing to defend the eviction on the grounds that he has a buyer. I can help you with the defence part of the form.

 

However, has he been making any payments recently, and is he able to make any between now and October? this would help the application.

 

(If the buyer would wait until October then things would work out OK)

 

Kind Regards

 

 

Ell-enn

[gizmo111]

What does his actual contract saying regarding the ERC?

[mrsfoot]

"Early repayment Charges are payable on this mortgage as follows:

Date of repayment Oct 05 - Sept 06 6% £4536.24

Oct 06 - Sept 07 6% £4494.01

Oct 07 - Sept 08 6% £4448.52

 

Thereafter 1 months notice will be required. The maximum charge you could pay is £4731.24. The early repayment charges may vary from cash example if the interest rates change"

 

I am thinking along the lines of if the fixed rate period ran for 3 yrs and was form the date of the offer, why does the ERC not do the same? Yes it is clearly stated in the agreement but surely this is unfair?

[Bona]

The notice he has from SMPL is it from the court giving SMPL possession on a certain day ie 28 days from the order or is it a warrent I suspect it is the Ist I think he may have a case to go to court and see if he can get an order for sale and get the Judge to waive the ERC

[mrsfoot]

Ok update

 

Carl's buyer has pulled out of the deal.

Carl has now completed a N244 and has now a court date before the eviction date to go into court and ask for longer to sell the house. A couple of things I need help with:

 

He now has a house to move in to which will be ready before the eviction. Should he just hand keys over at this point or go to court and get a little longer to find another buyer?

 

The notice was from SPML. They had a suspended order against them. Did this mean SPML could instigate the eviction without going back to court?

 

Is it possible for the Judge to ask SPML to remove the ERC?

 

The form N244 has been completed and a witness statement attached to it. Is he on the right road??

 

Any help as ever is gratefully received x

[mrsfoot]

Bumpety bump!!

[mrsfoot]

Update:

Carl lost his home.

[Ell-enn]

Oh dear, I'm sorry to hear that - I was on holiday when you posted regarding the N244 - I wish I could have done something to help, but maybe it was a lost cause anyway.

 

Ell-enn