HSBC endowment mortgage - Extending term? endowments haven't paid enough

[animox]

Hi Susan

I am in a very similar situation with HSBC, how did you get on in the end?

Grateful for any advice.

[theoldrouge]

Hi Susan

I am in a very similar situation with HSBC, how did you get on in the end?

Grateful for any advice.

 

Best to start a new thread of your own, as every situation is slightly different

[DesperateSusan]

Hi Susan

I am in a very similar situation with HSBC, how did you get on in the end?

Grateful for any advice.

 

It doesn't look like you started your own thread, so I'll answer here. It will hopefully be useful to others who find themselves in a similar situation.

 

Three years on, despite HSBC declining to extend the term, they have done nothing to try to force the issue. My understanding is that the loan goes into "forbearance". I have continued to pay the monthly amount, plus an amout that would clear the loan at the same time as the other loan (ie I'm doing what I wanted to do in the first place). I get a letter from them once a month to say the loan is overdue and I need to take steps to pay in full. I ignore those letters. I get a call from HSBC mortgage department, but I don't take them.

 

When this first started I was quite panicky - but now, I'm more relaxed about it.

 

I think the key is that I am paying it off.

 

Of course there may be subtle differences in my situation. Your experience may be different.

 

Good luck,

 

Sue

[DesperateSusan]

I've just looked back at my posts - post #10 ... I was angry wasn't I lol

[citizenB]

Susan, you had every right to be angry. How long do you think it will take you to clear the shortfall ? I am pretty certain that if they were to be foolish enough to take any action that they would be seen to be unreasonable.

[DesperateSusan]

How long do you think it will take you to clear the shortfall ?

 

I think there was 9 years left on the other mortgage, now about 6 years. I'm planning for both to be paid off at the same time.

 

Interestingly - there are no negative markers on my credit file about the mortgage not being paid in time.

 

I am pretty certain that if they were to be foolish enough to take any action that they would be seen to be unreasonable.

 

I tend to agree, CB. Easier to think that 3 years down the line, though.

 

Thanks,

 

Sue

[citizenB]

I was in a similar position in 5 years ago.

 

On receipt of the Endowment warning from the Insurers we immediately contacted HSBC at that point they were ok, just maintain interest payments and if you can afford a bit more then do that as well. Which we did.

 

It was after the Endowment had paid out and came up short that the bank showed it's true colours. We had 2 x home owner loans as well which were maintained correctly - in fact these were being overpaid as we had maintained the original payments when interest rates were falling.

 

We received a letter calling in both the Home owner loans and a nasty letter regarding the shortfall. Even though we had been in discussion with the bank, they were quite adamant - they were going to start repossession proceedings.

 

We continued to make the interest payments and paid an extra £300.00 per month to cover the shortfall (made the last payment in July of this year). For at least 6 months we were bombarded with unpleasant letters and on 2 occasions we had the bank manager literally screaming down the phone that they were going to bankrupt us !! (Fortunately these calls were recorded).

 

I already had a complaint in with the FOS about the way they had mis-sold PPI and a Managed Loan to Hubby and their continued refusal to treat him fairly. I pointed out to the bank that we would defend any claim more than vigorously and would bring in these issues if they tried to repossess.

 

A subject access request revealed interesting points regarding the Managed Loan and the way in which they had manipulated the I & E figures to ensure that the loan could be provided to hubby, so I just kept chipping away at them - if they wanted to take my home, then they were going to have a damn good fight on their hands and the information they had so foolishly allowed me to see by way of the SAR would surely give them a serious headache.

 

Eventually, after the FOS agreed with us about the shabby way in which we had been treated, HSBC gave up.

 

So IMHO, you just need to be very strong and keep batting them away.

 

Like you, we noticed they never recorded the shortfall on our credit files.