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Mortgage arrears-court possession proceedings... Help!


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Hi there all


I am in arrears with my mortgage after a drop in income.


I'm trying to look into ways of coming to some sort of agreement with the lender in order to make my payments affordable and to prevent them from taking me to court.


Is there a way of ending a fixed interest rate term early. My mortgage is fixed for three years (with 20 months left on the fixed term) at a stupidly high interest rate. When the fixed term (the product) ends the interest rate will go down to the base rate... which would be make my mortgage easily affordable if interest rates stay similar to what they are now.


When I took the mortgage out rates were really high... I pay £600 per month in interest alone. I am struggling to keep this up now that my income has reduced.... So... is there a way out of this horrid fixed high rate???


Anybody have any suggestions???


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Probably not. There will be a penalty for early repayment during this period

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Have you thought about taking you mortgage over a longer perios of time. Ask toy Mortgage company what their age criteria is but please remember it may be a fix for short term to reduce your outgoing but you will be paying interest on the amount for longer


Have you thought about interest only for a short time. Some banks will allow this however please remember again that at the end of your term you will still owe the original amount unless you have a repayment vehicle in place.

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Hi there


I am due to appear in court on Friday for a re-determination.


Below is my original thread explaining the circumstances and progress, but in short... Natwest (via Incasso) began court proceedings against me for a loan I am having difficulty making the payments on. But after I requested a CCA they sent a letter of discontinuance because they had not got a copy of my credit agreement and therefore going to court was pointless.


Somehow, in the cross over of time... an automatic judgement was made against me in favour of Natwest... and so Fridays court date is to re-determine the judgment.


I am concerned that I am a bit out of my depth and am not sure what will be expected of me. I shall take with me the letters of discontinuance I have received, and will file a costs claim for the days pay I shall miss by attending court... However... is this all I need and has anyone else ever experienced the is is able to give me some advice please.


Many thanks

Maxine :-)




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Yes Maxine, just read your other post - what a nightmare for you.


I have attended a redetermination hearing as the Claimant refused my offer of payment - I cant see why you are having a redetermination hearing though as the court has already ordered you pay £20 per month.


Anyway it is only you and judge. He will only ask you a couple of questions but take everything with you - even an income and expenditure form (make a copy for the judge) to give to him.


Make sure you have your Notice of Discontinuance (which I assume came from the court) to show the Judge. There has obviously been some crossing with the judgment and the Judge's directions for a redetermination.



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Hi HH...


It is all a bit baffling... I assume the re-determination is because the judgement was automatically made when the time limit was up... before the discontinuation was sent to the court bulk centre... sort of crossed in post kind of thing.


I shall take everything ready in a slim folder... *shudder* scary!!


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Right then folks... court date is tomorrow.


I sent this to incasso yesterday via the post and fax:


Court Claim number: XXXXXXX


Dear Sirs


With reference to the impending court date for a re-determination, due to take place at 11am on Friday 18th September 2009, I enclose a copy of my wasted costs regarding this matter.


I have also sent a copy to XXXXX court.


Your Faithfully




Costs For Re-Determination Case No XXXXXX

XXXXXXX Court 18th September 2009 at XX:00pm


Rate Claimed Litigant in Person rate of £9.25 / hour


1) Time spent identifying and understanding relevant legislation.

Time spent identifying and understanding relevant law.

Time spent seeking advice.


18 hours £166.50


2) Time spent communicating with Claimant (inc 5 letters).


2 hours £ 18.50


3) Loss of day’s wages for attending court on 18th September: £ 80.00


Total £265.00




Before undertaking this myself I approached a solicitor to handle this. I was given an estimate of 3 to 6 hours at £170/hour to prepare the Application (£510-£1020) plus extra for attending the court.


I respectfully request that the court give consideration to awarding these costs on the indemnity basis or, in the alternative, on the standard basis as I believe, in any case, that they have been proportionately and reasonably incurred and/or are of a proportionate and reasonable amount.


and made up a little court bundle of stuff listed below:


Court Bundle


1. Letter from Natwest, regarding defendants request for a Consumer Credit Agreement, stating a current CCA can not found


2. Letter from Incasso LLP, referring to Notice of Discontinuance of claimants court claim


3. Copy of the Notice of Discontinuance in the Northampton County Court


4. Copy of defendants letter to Incasso informing them of Withdrawal of admission


5. Copy of Judgment for Claimant


6. Defendants wasted costs claim



Hopefully this is all I need. I was going to include income and expenditure information, but as this case is a re-determination in relation their own withdrawal of the claim, I thought the subject of payment is irrelevant.


Fingers crossed the court decides to reverse the judgement and also agree to my costs, as I have had to take a day off... and I have spent ages trying to fathom it all out so my costs are legitimate.


M :-)


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Have read of the link below as it goes some way to explaining what happens in court.




I would also advise getting another 2 copies of the documentation you are taking to court.......it's strange how things go missing in Courts :rolleyes:


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  • 10 months later...

Hi there


I am looking for some help and advice with regards to the pending possession proceedings I've got going on with my mortgage lender at the moment.. hearing date 6th September.


I have a large amount of arrears (£6,615.25)... which build up towards the end of last year when my husband roofing contractors started laying him off due to lack of work. During this time I was a stay at home mom and so didn't have an income, we had to rely on laid off days/half time wages. I got a job January and went back to work as a teacher in order to prevent us from going under... since then we have been paying the usual mortgage amount with just an extra £20 towards the arrears... this was fine until we missed June and July's payments completely after hubbys job completely died a death and he is now the house husband with no work. So... we relay completly on my salary which we can just about survive on with a few tax credits to help.


My dilema is that my mortgage lender... Birmingham Midshires have bought in the legal services of Shoosmiths and are now taking me to court to try and secure a payment agreement to clear the arrears... at the moment clearing the arrears in near impossible with just one wage coming in. Shoosmiths have asked me to fill out an income and expenditure form to show what we can afford to pay.... but I am worried that if it looks like we are too skint and cannot pay back any arrears yet... then the possessions proceedings will continue and we will loose our home.


Can anyone advise please??? Do I fill out the income and expenditure sheet and show just how skint we are... or do I play my cards close to my chest and make it look like I can afford to pay a bit more... therefore having to sacrifice days out for the kids and chop a bit off the food budget.


we are a family of 6... me, hubby... 14 year old... 5 year old, 4 year old and a 2 year old....


I earn £24,000 a year and we owe about £125,000 on the mortgage. We have no option to down size as we are already over cramped in the house we live in...


Another thing that I wonder about... is the high interest rate I am paying on my mortgage... my mortgage is currently set at 6.05% until November next year... Is there any likely hood that a judge may request that the lender reduces the interest (when they see we can not afford to pay off the arrears)... being as rates have come down so much in the last few years??? About £600 a month I pay is purely interest... I pay £770 a month... so hardly anything actually gets paid off the loan... and they keep adding on arrears fees and £35 a throw which have mounted up, so much so (including the arrears) that although we are paying the mortgage... we actually owe more now then what we borrowed.


Sorry to go on... I am in a bit of a panic if I am honest. I am not sure which approach to take in preparation for the court hearing on the 6th September.


Any help/links/advice is greatly appreciated... many thanks, Maxine :-)


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Hi there, have you asked your lender to change your mortgage to interest only? as part of the pre-action protocols they are supposed to explore all options. If they did this it would give you some breathing space for your hubby to get another job.


Also, do the £6615 of arrears include the charges they have been adding?


Try not to get too stressed, lets see what can be done :)

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Hi Ell-enn


Thanks for your post...


I did ask the lender once before if we could pay interest only... back last year before I went back to work... they sent an assessor round to see us who looked at the house and discussed our income and expenditure with us. Because I had proof that I had applied for jobs and had interviews coming up, they allowed us three months at a reduced amount of £300 (which was lower than interest only)... the shortfall between that and the usual payments, the interest and the charges were all added onto the arrears with an understanding that would have to be paid back when we were financially better off. My job began in January and we were better off for about 6 months until hubbys job ended.


Arrears fees are listed below:

27 Apr 2009 £35

18 Jun 2009 £35

07 Jul 2009 £35

02 Nov 2009 £85 (I think was a higher amount because of the fee for the assessor coming round)

19 Jan 2010 £35

05 Jun 2010 £35

14 Jun 2010 £35

05 Jul 2010 £125 (again, I think this fee is high because of the court proceedings).


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  • 2 weeks later...

Hi there

I too have had similar problems with Birmingham Midshires. They transferred us to interest only last year for a period of 12 months after my hubby was working on very little hours and as I had 3 children under the age of 2 (2 being twins!) it wasn't going to pay us any extra for me to go out to work and have a childminder in. However we missed one months payment in May and they put us straight back on repayment! We simply cannot afford repayment and our arrears are at £4,000. They are only at the stage nowof threatening that they are starting court proceedings but what I have been doing is continuing to pay the interest only amount. I was advised that if you keep doing that, a judge will look favourably on the fact you are trying to pay something within your affordability range. They are supposed to explore all options with you and to be honest, I don't think Birmingham are very good at that. I wrote and asked them to continue the interest only for another 12 months as we are very confident my husband's business will have well picked up by then but they said no on the basis that they look at your 'investment potential' which basically means if you get to the end of your mortgage term then you need to have something to pay off the mortgage with if you've (worst case scenario) been paying interest onlu for the full 25 years. Considerng my husband built our house, our mortgage is £160,000 and the last valuation 18 months ago was £420,000!!! And that's during an economic downturn so I think they're missing something!! I've also just recently written to them asking them to transfer the arrears to the end of our mortgage term but I doubt they'll agree to it.

Try not to worry, hav you tried contacting any independent debt counsellors/advisors in your area?

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Thanks for posting....


I have had a bad week really and haven't done anything about it. I keep hiding my head in the sand. I was supposed to send in an income and expenditure info to the solicitors, but I just can't seem to bring myself to do it. In the day time I am distracted by noisy kids... and then on the evening I try not to think or worry about it all and so a vicious circle is beginning. I really should get it done... but I am worried they will see we can't afford the mortgage and just reposes the house.


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