Early repayment fees

[gipop]

Hi I am in need of some advice I have a mortgage with JP Morgan and am currently £5000 in arrears, they have now said that unless I stick to a repayment plan they will go for a re possession order. I am 2 years 6 months into a 3 year fixed rate deal and want to sell the house howver they are now saying that if a do sell before the end of the fixed rate deal they will hit me with £10000 in early repayment charges. This will mean that we cannot sell as it is unlikley that we would make sufficent profit to cover our cost and pay the early re payment charges. It seems like they are in a win win situation. If they go for a re-possesion order could i use this to say look I have tried to clear the loan value and cannot due to the imposition of early re payment charges. Sorry for rambling on I really need some help on this one.-|

[jansus]

Could you post a few more details of what your current position is.

 

Are you able to pay anything towards the MP ? Are you on repayment or interest only ? what is the cause of the arrears ? Is your position likely to change ? Have you had any court hearings yet ? Do you have any equity or is it likely to be negative equity?

[gipop]

hi sorry for the delay in getting back to you with more details, we currently have gone onto interest only repayments, we are 2 years 2 months into a 3 year fixed rate deal so the mortgage company are getting far higher returns that f we were on a variable rate mortgage. We are managing to make payment intermittently and are currently approx 6 months in arrears which has accrued over the last 12 months. we have not had a court case yet, however I think that is only a matter of time as the repayment plan we have had to agree to does not leave anything spare (it was agree to it or face court) however we are only delaying the inevitable. We are in this situation due to having only one wage coming in my wife is currently on a 2 year university course re training within nursing, and has been unable to take up full time employment as one of our children has been diagnosed with aspergers syndrom and need extensive parental input and supervision. Also just to make things worse cabot finance have just informed us that they are looking to get a charging order on the property to secure a £3500 debt and another debit collector is seeking and bankruptcy order against my wife for a £1000 debit. Currenty if we sold and the full aerlty repayment fees applied and without the charging order we would be in negative equity, without the fees and after estate agent fees etc we possibley may make a small £3000 -5000 profit.