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Halifax bank and possession order


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I have a possession order due to be heard in court on 16th July.

 

Halifax bank have agreed to extend my mortgage period from 5 years 4 months to 18 years, reducing my monthly payment.

The balance outstatnding on my mortgage is £29.7k and they want £191 per month for the next 18 years.

 

Shoosmiths (Halifax's solicitors) had said that they will attend court and apply for a suspended possession order (SOP).

 

I spoke to Shoosmiths yesterday and they said that they were applying for the SOP because of the arrears on the account.

 

The Halifax have capitalised the arrears and extended the term on my mortgage.

 

Firstly, is there anything that I can do to avoid a suspended repossession order?

 

Secondly, Shoosmiths will charge me for the court costs and this will get added to my mortgage, they have paid this, I presume. Can I get this fee refunded as I am on benefits.

 

Many thanks.

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I assume you intend to attend the hearing? You should take a statement with you advising that there are no longer any arrears on the account and therefore there is no cause of action. Did you return the defence forms to the court when you received the possession claim?

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OK, you will need to take a statement with you and also a copy of the letter from the halifax detailing that the arrears have been capitalised. I can help you write the statement if you need me to ? Do you have access to a printer ?

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Hi, I will need some background to help me ascertain what to write in the statement:

 

 

1. Is the mortgage in joint names?

2. What was the reason for the arrears?

3. Did you correspond with the Halifax in writing while you were in arrears to advise them of your situation?

4. What date did they capitalise the arrears?

5. Have you made a payment since the arrears were capitalised?

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1 The mortgage is in my name

2 Arrears arose due to unemployment.

3 Didn't really correspond in writing to Halifax whilst in arrears, just paid what I could, when I could (I have this on a spreadsheet).

4 They sent a letter on 4th July stating

 

Following your recent request I can confirm that we are able to extend your mortgage term from 5 years 4 months to 18 years.

 

Following this change your revised details are as follows.

 

Amount outstanding

 

The amount outstanding on your account as at 30th June 2012 is £29707.25

 

Interest Calculation method

 

Your account is conducted under our daily interest calculation method.

 

Monthly Payment

 

Your monthly paymentfrom 1st July is £191.46. This payment is due on 28th July.

 

Monthly mortgage payment £191.46.

 

Where you have asked us to we have rounded up your payment to a more convenient figure.

 

In providing the above payments we have assumed that all payments will be paid when due, any any fees will be paid when due, your preferred payment date remains the same and interest rates do not change.

 

These payments consist only of your monthly mortgage payment and do not include any insurance premiums.

 

Interest rate 01.07.12 3.89% Halifax standard variable rate

 

Your faithfully

 

 

xxxxxxx

 

The above letter doesn't state that the arrears have been capitalised. But the £29707.25 is the total that I owe to Halifax, including any arrears. If I pay according to the above letter I cannot see how I have any arrears.

 

I have paid £270 in July for my mortgage.

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They've extended from 5 years to 18 years !!!!

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How much were the arrears before they capitalised?

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By extending your mortgage term by 12.5 years has your monthly payment actually reduced ?

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Ah OK, I understand now - I presume you were happy to go along with the 18 years?

 

By almost halving your monthly payment Halifax have greatly reduced the risk of you getting into arrears again.

 

You say the arrears were due to unemployment? how long were you unemployed and are you now working again?

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sorry to intrude, as I know you are getting some of the best advise on the CAG : )

 

But...It would be interesting to know if the extended term is fairly apportioned dependent on the OP's age at the end of the 'extended' term to ascertain whether extending the mortgage by so many years is a fair option or not - No good extended the term to include a time when you will be too old to work....?

 

Also, does the Halifax's actions fall in line with FSA principles on Treating the Customer Fairly? The customer's arrears have occurred in the main due to unemployment - not because 'can pay - won't pay' - the OP will/should be in receipt of some form of mortgage assistance.....? The Halifax will have presumably been taking those payments - and in doing so, accepted that they are not looking to the OP for any more than that.

 

This was a mortgage with just 5 years left to run on it..... If the mortgage was 'repayment' - this means that the OP's payments should have been coming off loan capital - thus reducing the outstanding loan in leaps and bounds - arrear charges are not supposed to be added to a mortgage debt, because they did not form part of the original loan...as I understand things, a SPO will be to pay the mortgage plus something off the arrears - when you are unemployed a Judge Should/will take into account what the DWP are paying and any extra you can truly afford to offer to cover arrears.

 

Further - by extending the term by so many years... A Judge must be asked to consider in the circumstances whether the Halifax's solution is in the best interest of the OP's long term financial stability with the right to redeem in 5 yrs - being increased by a further 13 yrs - is this FAIR?

 

I say this because a friend of mine was in a similar position, he was in receipt of Benefits due to un-employment as well, the above knowledge helped him.

 

It seems to me the most important thing to avoid here is the extension of the mortgage term...

 

Hope this helps?

 

Apple

[COLOR="red"][B][CENTER]"Errors do not cease to be errors simply because they’re ratified into law.” [/CENTER][/B][/COLOR][B][CENTER] E.A. Bucchianeri[/CENTER][/B]

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I was getting around to that lol I'm at work at the moment so having to ask questions in stages.

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Hi,

 

I am self employed and get sporadic work, I am in receipt of working tax credit, due to my low income. I was unemployed for 1 year.

 

I am 47 years old and am quite happy to extend my mortgage for a further 18 years. (the reduction from £363 to £191 a month would mean that if I get a good run of work then, I could pay more than the £191 a month. Thereby reducing the term).

 

I did get mortgage interest assistance when I was on job seekers allowance (after 13 weeks) this was for approx 1 year. The Halifax have aways been on my case for extra money even whilst I was get mortgage interest assistance.

 

I then went self employed and now receive no help towards my mortgage.

 

The Halifax kept telling me to pay my arrears of about £7.5k which I didn't have, only option seemed to be to go onto interest only for 1 year or to extend the term..

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OK, I'll start to draft a statement for you to take to court. It will probably be this evening or tomorrow as I am at work at the moment and don't have a lot of spare time.

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No problem, catch you later :)Can you make photocopies on your printer? you will need to make 3 copies of the letter from the Halifax re extending your mortgage

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Please consider making a donation, however small, if you have benefited from advice on the forums

 

 

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If via the court, Halifax can be persuaded to put you on an interest only mortgage right now... You would only be paying £96.30 over the next 5 years - further, if you can also put in place a savings plan that will mature to pay the outstanding capital balance at the end of 5 years - this would go some way to showing the court that given you are self-employed and presumably would prefer to remain so.....that you have taken into account the interests of the Lender during a time when both interests are of importance...

 

Both the lender and you would be free of each other within 5 years! sounds like bliss....why try to secure a deal that would simply put more money in the lenders coffers if it can be avoided.....

 

I'm hopeful Ell-enn will agree, If you can secure this type of deal... as based on your circumstances.... you can also offer a more realistic sustainable amount off the arrears more comfortably...Don't fall into the trap of committing to any more than you can truly afford....or into any period longer than you can predict the SVR for....recession is here and now... in 10 years time, we could be back into the heady days of higher interest rates... be careful....

 

I concede of course, that if the court and the Lender are not willing to let you do this, then the 18 year option might be best used as a contingency....

 

Funnily enough, If they were willing to convert your mortgage to interest only for 18 years the amount payable would remain the same.....at £96.30 - this in turn would give you 18 years in which to find the capital instead of 5 years...

 

Here are the figures:

 

Outstanding loan amount including arrears: £29, 707.00

Remaining Period of Loan : 5 yrs

SVR% : 3.89

 

Repayment terms would cost you : £554.36 each month

Interest only terms would cost you : £96.30

 

********************

Outstanding loan amount including arrears: £29, 707.00

Remaining Period of Loan : 18 yrs

SVR% : 3.89

 

Repayment terms would cost you : £193.81 each month

Interest only terms would cost you : £96.30

 

If you allow Halifax to put in place a SVR over 18 years - whilst I understand your motives for liking this deal at this time, the risk is that interest rates can go up as well as down.... e.g if your SVR changed to 12% you would pay £686.75 on a repayment mortgage and £297.07 on interest only over a 5 year period.

 

and..... £341.47 repayment or £297.07 over the 18 year term....

 

Outstanding capital of £29,707 would mean finding an extra £114.25 per week for 5 years - which you simply put into a savings account or plan.... or £31.74 per week if the 18 year term is put in place.....

 

Again, I understand your reasoning but it makes sense to consider the figures and the implications whilst you actually have the chance to do so ; )

 

Crikey, my posts are always long - apologies - succinct just doesn't work for me for some reason - LOL : )

 

Apple

[COLOR="red"][B][CENTER]"Errors do not cease to be errors simply because they’re ratified into law.” [/CENTER][/B][/COLOR][B][CENTER] E.A. Bucchianeri[/CENTER][/B]

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I was getting around to that lol I'm at work at the moment so having to ask questions in stages.

 

Thanks Ell-enn, I understand... hope you don't mind my further input - I don't want to confuse any solution you may arrive at for the OP, hopefully all remains well...

 

Apple ; )

[COLOR="red"][B][CENTER]"Errors do not cease to be errors simply because they’re ratified into law.” [/CENTER][/B][/COLOR][B][CENTER] E.A. Bucchianeri[/CENTER][/B]

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Obviously the decision is the OP's and given the hearing is on Monday - he's not likely to be able to negotiate another deal before then. However, once the hearing is out of the way, perhaps he could put a different proposal to them.

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I hear you, yes, time is short.

 

Having said that if the statement you are preparing is carefully constructed, the best time to introduce the proposal is when he goes to court on Monday. Reason being, if he gets a Suspended Possession Order on the Halifax's 'one-sided' (IMO) terms - then fixing it at a later date will be harder, and the opportunity to end his mortgage in 5 years and all options that it secures - such as the important one of being mortgage free in 5 years will be lost altogether.

 

Much better to push and get the 5 year option, so that if he fails for any reason, he can seek extension of the mortgage term from there - he will be young enough to do so....

 

Interest only 5 years on the Treating Customer Fairly principal - as this is supposed to provide the best 'outcome' for the customer NOT the Lender is the way I would go....

 

Just my opinion of course - Like you say, it's up to the OP and of course the negotiations in court at the end of the day - but, if you don't ask for this option to be considered - it will definitely be lost - that is not the best 'outcome' for the customer - he loses the essential right to work to be mortgage free in 5 years time - this was no doubt the enviable position that the OP bargained for and was the original agreement - the Lender along with the court should work to keep the OP in the same position - there is a solution - they would have to advise on what grounds he should not be allowed to retain it.... given TCF..

 

Apple

[COLOR="red"][B][CENTER]"Errors do not cease to be errors simply because they’re ratified into law.” [/CENTER][/B][/COLOR][B][CENTER] E.A. Bucchianeri[/CENTER][/B]

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