Likely Home Repossession - Nationwide

[tezzaa61]

Hi Folks,

 

Looking for some advice.

 

I've been unemployed for 15 months. I have had an arrangement in place with Nationwide to just

pay the interest on my mortgage, for about 8 months or so. Normally every 3 months they extend the arrangement for another 3 months after getting me to go through my income/expenditure.

 

Last time they only extended it for 2 months as I was unfortunate to speak to a stroppy adviser

on the mortgage team. She said it can't be extended indefinitely and I would need to call again in August.

 

I've a couple of weeks temp work coming up and the two questions I have are:

 

Could I not just switch my mortgage to Interest-Only, I'm currently on a standard variable rate of 2.54 %. I briefly spoke to someone on the desk at my Nationwide local branch, and he said to do that I would need to take out an endowment policy as I do not have 150K equity in the house.

My significant other, who has her own house, went Interest-Only about a year and a half ago, and she was not required to take out an Endowment Policy at her Mortgage Provider. Is that requirement set-in stone somewhere, or does it vary from bank to bank Is it worth me talking to a mortgage adviser at the Nationwide. I'm not in a position to afford a policy.

 

My second question is with regard to Mortgage Interest Relief (MIR) that the DWP pay.

If I work for 2-3 weeks, when the temp work is over, I was told I could do a Rapid Re-claim for

JSA and that my claim for MIR would also be linked to the re-claim and I would continue to get

it. Is that the case?

 

Any advice would be most appreciated.

 

Cheers

 

Tez

[citizenB]

I will flag this for site team for you.

 

The ST members who would be able to advise on this have day jobs so wont be around until later this evening.

 

So dont think you are being ignored

[gaznolan]

Nationwide require a repayment vehicle for interest only mortgages, as does every other lender now. They will accept the following as -

will accept the following repayment vehicles:

 

• stocks and shares ISA including one previously known as a PEP
  
• endowment policy
  
• pension plan
  
• sale of second property- Must have 120% equity of your loan in a second property, you need to be on the deeds for this
  
• sale of main residence- Again you need a huge amount of equity
  
• UK FTSE listed securities
  
• unit and investment trusts
  
• capital from Trust funds
  
• Premium Bonds
  
• sale of foreign holiday home - From what I can gather they have never asked for any evidence of this.
  

what is your home realistically worth and how much do you owe on the current mortgage ? Unfortunately this is the time when an MPPI or a PPI plan would be useful to you . I would suggest going to the local branch and asking if there is anything they can do to help you

[tezzaa61]

I will flag this for site team for you.

 

The ST members who would be able to advise on this have day jobs so wont be around until later this evening.

 

So dont think you are being ignored

 

OK, thanks for that

 

Nationwide require a repayment vehicle for interest only mortgages, as does every other lender now. They will accept the following as -

will accept the following repayment vehicles:

 

 

• stocks and shares ISA including one previously known as a PEP
  
• endowment policy
  
• pension plan
  
• sale of second property- Must have 120% equity of your loan in a second property, you need to be on the deeds for this
  
• sale of main residence- Again you need a huge amount of equity
  
• UK FTSE listed securities
  
• unit and investment trusts
  
• capital from Trust funds
  
• Premium Bonds
  
• sale of foreign holiday home - From what I can gather they have never asked for any evidence of this.
  

what is your home realistically worth and how much do you owe on the current mortgage ? Unfortunately this is the time when an MPPI or a PPI plan would be useful to you . I would suggest going to the local branch and asking if there is anything they can do to help you

 

Thanks for your reply

 

I've only about 19K equity in the property and none of the repayment vehicles above. I'll arrange an appointment with a mortgage adviser at the local branch to discuss my circumstances.

 

I've just about managed so far, but if they will not extend the payment arrangement again, I'll be in serious difficulty.

 

Cheers

 

T

[antone]

I'll have to leave the mortgage questions for others, but regarding your MIR with your benefit then yes, if you do a rapid reclaim following a short period of employment then your new claim will be linked to the old one. In effect, it will be treated as not really a new claim at all. So if you were entitled to MIR before then that will continue.

 

If you need to speak to the DWP about MIR, you should ask for a callback from a member of the Mortgages team - it's a specialist area within the department and most staff aren't trained to answer queries on the subject.

[tezzaa61]

I'll have to leave the mortgage questions for others, but regarding your MIR with your benefit then yes, if you do a rapid reclaim following a short period of employment then your new claim will be linked to the old one. In effect, it will be treated as not really a new claim at all. So if you were entitled to MIR before then that will continue.

 

If you need to speak to the DWP about MIR, you should ask for a callback from a member of the Mortgages team - it's a specialist area within the department and most staff aren't trained to answer queries on the subject.

 

Thanks for your reply. That's all very helpful to know.

 

One more thing; what is the cut off point for a rapid reclaim?

 

Regards

 

Tez

[Ell-enn]

Usually lenders suggest you have a repayment vehicle in place if you take out an interest only mortgage - but I've not heard of them insisting on it. However they are usually satisfied if you tell them you intend to sell the house at the end of the term to repay the mortgage.

[antone]

Thanks for your reply. That's all very helpful to know.

 

One more thing; what is the cut off point for a rapid reclaim?

 

Regards

 

Tez

 

Any claim within 26 weeks of the end of your last claim will be an RR, provided your circumstances have not changed. But even if you're not able to make an RR, the new claim would still be treated as "linked" to the old claim for, I think, 52 weeks. As such, your entitlement to MIR would be on the same terms as before.

[tezzaa61]

Any claim within 26 weeks of the end of your last claim will be an RR, provided your circumstances have not changed. But even if you're not able to make an RR, the new claim would still be treated as "linked" to the old claim for, I think, 52 weeks. As such, your entitlement to MIR would be on the same terms as before.

 

OK, that's great to hear.

 

Thank you so much for your help

 

Tez

[tezzaa61]

Hi Folks,

 

Looking for some advice.

 

I've been unemployed for 15 months. I have had an arrangement in place with Nationwide to just

pay the interest on my mortgage, for about 8 months or so. Normally every 3 months they extend the arrangement for another 3 months after getting me to go through my income/expenditure.

 

Last time they only extended it for 2 months as I was unfortunate to speak to a stroppy adviser

on the mortgage team. She said it can't be extended indefinitely and I would need to call again in August.

 

Cheers

 

Tez

 

Hi,

 

Update:

 

August was the last month the Nationwide agreed to me paying the interest only.

 

I have two questions:

 

When my payments go back to paying off the interest and the principle they would normally

go back to £254 per month and increase of £154 per month.

 

Will that amount now increase due to the fact that I have been paying £154 less every month for 18 months?

 

Also, would it be worth me asking them to re-capitalise the arrears. I've been two and

a half months in arrears for the period the payment plan has been in place. If they agree

to re-capitalise the arrears it may buy me 3 more months to try and get myself sorted.

 

Any advice would be gratefully received.

[tezzaa61]

Hi,

 

I am having to sell my house as the Nationwide have taken me to court due to arrears.

 

I have had an offer on my house (which is ridiculously low) and the estate agent keeps asking me

if I have informed my mortgage lender about the offer.

 

Am I obliged to inform the Nationwide that an offer has been made on my property?

 

Thanks in advance.

[Ell-enn]

Can you give a bit more detail please i.e. are you in a position to pay a bit towards the arrears each month?

 

Would the offer you have clear the mortgage ?

[northernbloke]

Could the estate agent just be asking this to help you? Hopefully Nationwide would stop repo proceedings if you have a firm offer?

[tezzaa61]

Can you give a bit more detail please i.e. are you in a position to pay a bit towards the arrears each month?

 

Would the offer you have clear the mortgage ?

 

Hi,

 

I can't pay anything towards the arrears each month.

 

Yes, the offer I have would clear the mortgage

[tezzaa61]

Could the estate agent just be asking this to help you? Hopefully Nationwide would stop repo proceedings if you have a firm offer?

 

Hi, that could be why they are asking.

 

What I'm not sure about is whether or not I'm obliged to tell the mortgage company I have an offer, as basically it's far below what I think my property is worth and I'm holding out for a better offer.

 

Am I obliged to tell the mortgage company I have an offer?

[caro]

Do you know if the prospective buyer wants your property as a home or to rent out.

[Ell-enn]

I think you should write to the lender telling them you have put the house on the market - include a copy of the estate agent contract, that way if you have to defend court action you can show you are in the process of trying to clear the mortgage.

 

If you need help with a letter let me know.

 

What date is the court hearing for possession ?

[tezzaa61]

Do you know if the prospective buyer wants your property as a home or to rent out.

 

I think he wants to rent it out.

[tezzaa61]

I think you should write to the lender telling them you have put the house on the market - include a copy of the estate agent contract, that way if you have to defend court action you can show you are in the process of trying to clear the mortgage.

 

If you need help with a letter let me know.

 

What date is the court hearing for possession ?

 

Thanks for the reply

 

The hearing is on 7 September.

 

The lender is aware the house is on the market.

 

I have been to court twice already and had it adjourned twice to give me time to either get it sold or there is a very small chance I may have my benefits increased pending appeals for ESA and PIP, but that is in no way guaranteed.

 

When I was last in court the judge said it wouldn't be adjourned again and he would be looking to grant re-possession to the lender. I had a 6 week adjournment this time because I stated that I should know the result of my appeals in 4 weeks and it was a mistake for me to say 4 weeks as its taking longer.

 

What no one has clarified for me is do I have to tell the lender an offer is on the table? The estate agent keeps asking me if I have told the lender, which I haven't - do I an obligation to tell the lender?

[caro]

Thanks for the reply

 

The hearing is on 7 September.

 

The lender is aware the house is on the market.

 

I have been to court twice already and had it adjourned twice to give me time to either get it sold or there is a very small chance I may have my benefits increased pending appeals for ESA and PIP, but that is in no way guaranteed.

 

When I was last in court the judge said it wouldn't be adjourned again and he would be looking to grant re-possession to the lender. I had a 6 week adjournment this time because I stated that I should know the result of my appeals in 4 weeks and it was a mistake for me to say 4 weeks as its taking longer.

 

What no one has clarified for me is do I have to tell the lender an offer is on the table? The estate agent keeps asking me if I have told the lender, which I haven't - do I an obligation to tell the lender?

 

I wonder why the agent has told you this. I don't know the answer but unless you have something from the court or lender which confirms this I wonder about the agents reason for this. I have heard of unscrupulous agents who work with developers and property investors giving them the heads up when properties are likely to go cheap due to repossession or quick sales being required. I suspect if you tell NW they will want you to accept the offer. I would ask the agent to advise why they think you need to tell them. Seems to me you should be trying to negotiate a better offer. The agent works for the seller not the buyer so should want to get the best price for you.

 

Are there any similar properties on the market or recently sold that you can find to compare prices?

[tezzaa61]

I wonder why the agent has told you this. I don't know the answer but unless you have something from the court or lender which confirms this I wonder about the agents reason for this. I have heard of unscrupulous agents who work with developers and property investors giving them the heads up when properties are likely to go cheap due to repossession or quick sales being required. I suspect if you tell NW they will want you to accept the offer. I would ask the agent to advise why they think you need to tell them. Seems to me you should be trying to negotiate a better offer. The agent works for the seller not the buyer so should want to get the best price for you.

 

Are there any similar properties on the market or recently sold that you can find to compare prices?

 

Sorry for late reply, didn't get a notification like I normally do!

 

The agent seems to be more on the side of the potential buyer. I have decided to terminate my Sole Agency Agreement with the current agent. I am now putting my house up for auction as I think I will get at least a price nearer to what I want, even though I know it will be far less than market value.

 

Last time I spoke to the agent to say I wanted to terminate my Sole Agency Agreement, he said I would have to pay him the £99 + VAT for the EPC they did for me before they will take it off the market.

 

Their Terms and Conditions state I have to give 28 Days Notice in writing to terminate the Agreement. I have to get that to them today to get it in the Auction in a months time, or I'll be liable to pay them a fee if it's sold.

 

Are they right when they say they will not take it off the market till I have paid for the EPC? Even if I give them 28 Days Notice today.

[f16]

I 'm with caro on this.

Your "Estate Agent" has a "client" in mind.

Read the "Terms and conditions" on the contract you signed with regards to the EPC.

 

You may be better off marketing it with another agent or agents rather that going to auction. ...

 

Your going too have to move fast though.

Good Luck.

[tezzaa61]

I decided to reluctantly accept the offer for my property and I attended court on Monday 7th Sept.

The judge granted repossession of my property to the lender after 56 days.

 

Since the court appearance I've had an estate agent value my property to see what I could rent it out for. She says she could get me a tenant and the rental income would more than cover the mortgage.

 

Is it worth asking the lender to consider this option at this late stage or are they likely to just point blank refuse?

[tezzaa61]

Hi,

 

The bailiffs are coming to re-possess my home next Tuesday.

 

I owe £58,000 on the mortgage and the house is worth roughly at least £74,000.

 

Someone that offered to buy it awhile back may be interested in buying it from me but only for £64,000.

 

If I just let the bank re-possess it, are they allowed to sell it for less than £64,000? I did read somewhere that they have to sell it for a reasonable price around about the market price.

 

I also have someone that would rent it, but apparently, as I owe arrears, I couldn't rent it out until the arrears are paid.

Is that a legal requirement?

 

I'm just not sure of the best course of action.

 

Any advice will be really appreciated.

 

Thanks

 

Terry

[citizenB]

Sadly we do see repossessed properties sold way below the market price.

 

 

I will alert site team for you, but you might not receive a response until later in the day - do please keep an eye on your thread for responses.