Problems with finding a way out

[liznewman]

Hi don't know if anyone can give me any advice. I am a pension and my husband is 62 at the moment. He has worked all his life unfortunately in March 2010 he became ill and was unable to work. We are now on Pension Credit. We have got into difficulty now having used all our saving over the last 12 months. I have contacted the Halifax to day to see if it would be possible to revert to Interest only for a few months, we only have 3 years left to pay and have lots of equity. They said no, because we have 2 personal loans. They said I should contact the loan people first. If they had let us do interest only for a time (we have the property up for sale) we would be able to pay the loans as well as the interest on the Mortgage.

 

It appears because we have paid all our payments up till now, and not defaulted on anything they won't help. Whereas it appears if we had defaulted they would have done. I wonder if anyone can offer any advice. I have done a remedy place on one debt website, but am a bit lost now.

 

Thankyou.

[citizenB]

Trying to find some help for you.

[liznewman]

Thank you so much

[ErikaPNP]

As you are on Pension Credit, have you looked into Support for mortgage interest? It doesn't pay the capital on your mortgage but may help ease the burden a little. SMI isn't something that I know a lot about but once you have been in receipt of pension credit for at least 13 weeks, you can apply for it.

 

You can contact the pension service on 08456 060 265 Monday to Friday between 8am and 8pm to ask them for more information about this.

[liznewman]

Thank you. Yes we allready get that. Which is only about £15 per month because we are at the end of the term nearly.

 

Thats why I thought they would let us go interest only for a time. It seems the only way out is for me to default on my 2 personal loans, really didn't want to do it as its just going to get me in more debt and make what I owe on the loans more. The two come to about £7,000, I dread to think what that amount will end up being.

 

But thank you for your reply

[phoenix11]

I thought it was no longer allowed to try and force clients into further debt when not making every effort to try and help them in any way possible?

 

If this doesn't get any more replies here, post this on the Halifax forum where other knowledgeable helpers hang out.

[liznewman]

I don't know Phonex. But as we have never defaulted on a mortgage payment I was shocked when they said no. Espeically when it seems to be because I have these 2 loans, which I have never defaulted on either and we are on pension Credit. It seems stupid to me for them to say we should default on the loans where if we went on interest only there would be no need to. Especially when you consider we have about £300,000 in equity!

[phoenix11]

Need to keep this bumped up then because I'm sure they cannot tell you to default on loan payments when they haven't even begun to try and help you sort things out by offering short term alternative arrangements.

[citizenB]

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingDebt/DebtsAndArrears/DG_10013261

 

http://www.moneysavingexpert.com/mortgages/mortgage-arrears-help#interest

 

2 links that might be of help.

[liznewman]

I didn't know that Phoenix, I think I might ring them again and ask if they will reconsider, perhaps put in a complaint. This is making me feel really ill. Thank you for your help everyone

[citizenB]

It might be best to write to them, that way you have everything documented.

 

How long do you have left on your mortgage, you seem to have a good deal of equity, ask them if they can extend the term of the mortgage for a period of time.

[liznewman]

Hi Everyone. Just an update. I have still got nowhere with the Halifax. However, I contacted CCS and did a form online. I wrote a letter to my 4 creditors and sent a payment by cheque of £5 to each.

 

The MBNA have been brilliant, they have frozen the interest and charges and accepted my payment. Such a relief.

 

However, one personal loan company has cashed the cheque but I haven't heard anything from them, and the other two haven't cashed the cheques.

 

It appears according to CCS that the companies have to accept these payments. So I have to write to them again today to ask why they haven't cashed them, but I have been told to keep the payments up.

 

I suppose I am now getting on the right track but am still annoyed at the Halifax. I am just hoping now that these other 3 compaines, one is a card with not much owing on it, and the 2 personal loan companies are as good as the MBNA. The total debt is about £9,000 so hopefull if we manage to sell our property we will be able to clear it all off.

 

I hate being in this position I have never gone overdrawn with my bank in 25 years! and never defaulted on a payment, I suppose I am better off than many. Oh to get old and ill as they say.

 

I would like to thank everyone for their kind words and help!

[Tingy]

Hi don't know if anyone can give me any advice. I am a pension and my husband is 62 at the moment. He has worked all his life unfortunately in March 2010 he became ill and was unable to work. We are now on Pension Credit. We have got into difficulty now having used all our saving over the last 12 months. I have contacted the Halifax to day to see if it would be possible to revert to Interest only for a few months, we only have 3 years left to pay and have lots of equity. They said no, because we have 2 personal loans. They said I should contact the loan people first. If they had let us do interest only for a time (we have the property up for sale) we would be able to pay the loans as well as the interest on the Mortgage.

 

It appears because we have paid all our payments up till now, and not defaulted on anything they won't help. Whereas it appears if we had defaulted they would have done. I wonder if anyone can offer any advice. I have done a remedy place on one debt website, but am a bit lost now.

 

Thankyou.

 

Are the personal loans secured on your property? Halifax are notoriously difficult. I've just written a letter for someone on the site who was having problems with them and they got substantial compensation. What has been said above is correct. The way they are treating you goes totally against many pieces of legislation, not least The Lending Code and the OFT Debt Collection Guidance as well as lots of others.

 

I called them to account on these to pieces of legislation by pointing out they'd subscribed to the code and as such were supposedly responsible lenders. I then unpicked every little mistake they'd made and ended each paragraph along the lines of, Bearing in mind the above mentioned legislation, please could you justify this?

 

I asked them at the start to respond to each point in turn and of course they couldn't.

 

They are slippery as eels, but you can defeat them!

[liznewman]

Hi Everyone.

 

Another update.

 

Still had no luck with the Halifax.

 

I did the budget plan with CCS and printed off the letters, sent them to my 4 creditors.

 

MBNA, brillant, accepted my payment and froze interest and charges.

 

AA Finance, not heard nothing from them as yet.

 

Masterloan, not heard anything from them as yet.

 

Santander, refused the plan and said they wanted a bank statement. This card is in my partners name and he doesn't have a bank account. The bills are paid out of my account. I have contacted CCS and asked their advice they have said just to send the original letter and budget plan again. Santander cannot force me to send one of my statements.

 

They have ALL cashed the cheques I enclosed with the budget plan and letters. I have now set up Standing Orders for all 4.

[matt5983]

Tingy, can we draft up a letter to the halifax ref this, im sure you could make them see sense !

[Tingy]

A Tingy letter? I guess I could knock one up. I wish I'd saved my last one that defeated the Halifax - I'll pm the person I did it for and try to get a copy back.

 

OP - apologies for being lazy, but could you pm me all the main points of this as bullet points (if possible in chronological order) and what you asked, what they responded etc.... A summary of the entire farce in bullet points. I'll willingly turn them into a letter for you.

[liznewman]

Thank you very much Tingy. I will have a go.

[Tingy]

No problem - that's what the site is about. Thank you. As I say, it may well be Monday before you get it, but you will get it I promise!