Taking house off 76yr old with Dementia, as Interest Only Mortgage has expired

[dementia-elderly]

My mum has had a mortgage for 45 years. It represents 17% of it's value.

They don't want to continue it, once it reached the end of it's term, even after agreeing to continue it in May of this year. We only get to know a repossession court date is due on 30th of this month, 10 days ago. Barclays know she was staying with me over summer and it was only a neighbour checking post, that alerted us.

(Barclays has made it very difficult for me to assist my mum on the issue)

 

They wanted a message from the doctor, which they got, now they changed their mind and want a more formal letter via the post. Before 'possibly' reconsidering.

 

Her rate was/is a minimum of 5% and went higher when rates increased recently. So they are earning well from her. Plus she paid off two loans they sold her, to pay off overdrafts, they kept letting her fill up! Until we asked them to stop. Both stink of miss selling.

 

The impact of this will worry her, cause her to fear leaving her home and disrupt her recuperation with us. An effort that took her from being skin and bones, close to death (even with carers/social workers visiting), to eating and being more healthy.

Edited October 12, 2018 by stu007
Edited

[dx100uk]

sorry we cant carry photos removed

[slick132]

Hi DE and welcome to CAG

 

We need some more info here :-

 

1. Do you have Power of Attorney for YM or at least an "Authority to Act" that the bank recognises.

 

2. If there was a normal repayment mgge, did that not run it's full course.

 

3. Your mum is not likely to have had an interest only mortgage for 45 years so how did the I.O. mgge come about.

 

4. Did you not know the Int Only mgge was expiring.

 

5. Did YM make any arrangement to pay off what was owed on expiry of the Int Only term.

 

[dementia-elderly]

Thank you slick132

 

1. No Power of Attorney but yes "Authority to Act" that the bank recognises

(though each new staff member has me waiting 30 minutes on the phone, whilst they confirm that they can talk to me!)

 

2. Not sure if there was a normal repayment mgge, that did that not run it's full course. 45 years ago.

 

3. Again not sure. But they sold her one that goes up and up, but never goes lower than 5%!

 

4. Took a year to be able to talk to them. Knew in May 2018 that Int Only mgge was expiring.

They agreed to extend it then changed their mind!

 

5. They want 79K, which my mum might not be able to get with Dementia (even with the next Banking con, Equity Release).

I would struggle to provide that in the next 18 days

 

Hopefully Barclays will see sense, if they have a heart/logic

[Ethel Street]

Is your mother's dementia such that she no longer has mental capacity? if so have you considered applying to the Court of Protection to be her Deputy? https://www.gov.uk/become-deputy

 

You say she stayed with you for the summer. Is she likely to continue living in the house on her own or will she be moving elsewhere, whether that's to live with you/another relative. or into sheltered accommodation, or to move in a care home? If so you would presumably sell the house? On your figures the house is worth more than £450,000 so (depending where in the country it is) sounds like there is scope for downsizing and moving into sheltered housing. If that is appropriate (I realise I know nothing about your mother's condition, I'm just speculating). If Barclays knew that was the plan they may be happy to wait for you to sell rather than them seeking repossession.

 

There's no other source of funds your mother could access for the £79k? Loan from a family member etc?

[dementia-elderly]

Thanks Ethel Street, yes becoming a 'deputy' sounds like a good idea.

She has not seen her solicitor in a decade, so will need to get in touch with them (her one may have retired).

 

Her house is the only place she will settle, back with carers and me if needed, as the only remaining relative. So plan to do that once she is out of danger (puts on more weight). She might downsize one day, but would rather Barclays let her decide when to do it and continue her mortgage. As she is happy in her home. 79k isn't available within 18 days and I am likely to struggle to re-finance, as self employed.

 

Hopefully Barclays will see sense, if they have a heart/logic

[Ethel Street]

 

Hopefully Barclays will see sense, if they have a heart/logic

 

 

I doubt they have a heart, although they've identified that their borrower is a vulnerable person and backed off for the moment. But they won't stay backed off for ever unless there is a plan how you are going to repay this. If you are looking at equity release as the only way to raise capital to pay off the mortgage do take professional advice before you commit. And I'd think you would have to be a court appointed Deputy to go down this route on your mother's behalf.

[dementia-elderly]

Not sure whether they have given an inch yet.

Or whether,

agreeing to extend Mortgage in May,

agreeing on a Doctors email

and now demanding a Doctors Letter in the post,

is all a way of 'running down the clock'

 

As they may have no intention of stopping their attack!

[honeybee13]

Hi.

 

The thing is that I assume Barclays informed your Mum that there was still money owing. Given that it was an interest only mortgage there should have been a plan in place to repay the capital.

 

Is it possible you could take one of the options Ethel Street mentioned?

 

HB

[dementia-elderly]

Not seen a letter, warning/giving a settlement figure and I cleared her place on every visit.

As she was being uninitiated with 'winning offers' & dodgy deals (being sent toy tractors / Eddie Stowbart Lorries!)

Neighbour says only the court letter came, since she has been away.

 

Her or I don't have any likely 79k fiance options & no time to sell, before 30th.

Plus any effort will mean her return to London & the end of her recuperation.

She is doing well, but needs longer, before the carers take over again, back in her home.

Edited October 13, 2018 by Mr.P
Rwmove link to mothr's photos.

[dementia-elderly]

Cláusula Suelo

 

Barclays selling 'fixed minimum rate mortgages', as mum appears to have, was found to be 'miss-selling' in Spain

 

theguardian.com/business/2016/apr/08/spanish-consumers-win-victory-over-mortgage-payments-barclays-santander-class-action

Banks including Barclays and Santander face a €5bn (£4bn) bill after a Spanish court ruled that millions of fixed minimum rate mortgages were null and void because of the “lack of transparency” in the way they were sold

[honeybee13]

I don't know if a Spanish case will apply to your Mum, hopefully someone else will.

 

 

This link from the FCA says what lenders should be have been doing about communicating with interest only borrowers. Do you think they did this with your Mum?

 

 

Guidance consultation: Dealing fairly with interest-only mortgage ...

 

 

 

HB

Edited October 13, 2018 by Mr.P
Fix the link (hopefully)

[dementia-elderly]

Yes, the Bankers must have less powerful friends in Spain. Thought it did take them 10 years to get justice.

One would imagine they have covered themselves... even when sending a court doc, to a house they know is empty.

Pretty sure they have done zero with mum and know they did nothing with me, other than agree to everything in May, then do the opposite!

But as with being miss sold my Endowment, I do not trust that they can be brought to task.

(They got away with sinking the world, already!)

[honeybee13]

I can see that you're very angry with Barclays, but might it be better to focus on helping your Mum with her situation at the moment?

 

 

HB

[dementia-elderly]

Thanks honeybee13.

 

Barclays will be her demise,

she will not survive the loss of her beloved home,

which she rarely left within the last 2 decades.

[honeybee13]

Going back to the hearing, what paperwork has there been please?

 

 

HB

[slick132]

I think an SAR to the bank may be an idea so you can find exactly HOW the bank came to lend money to YM by way of and Int Only mgge.

 

She needs to sign the SAR. See the link here - https://www.consumeractiongroup.co.uk/forum/showthread.php?387306-Full-Subject-Access-Request-under-the-new-GDPR-2018-regime&p=4192184&viewfull=1#post4192184

[dementia-elderly]

Thank you.

 

Found a couple of letters in the past. Not found any since they agreed to continue the mortgage in May this year. Not there as they know but not received any communications direct to me. Just the court date docs, were found in mums letter box, by a neighbour looking after the house, 30 days ago.

 

Barclays got the doctors email confirming Dementia which might stop the repossession, then changed their mind and demanded a letter.

 

It should be with them Monday, with days to go before the court date, for their Panel to reconsider.

 

Thank you.

It would be good to understand how they sold her a 'win win for them', Int Only mgge!

(but don't trust they would incriminate themselves, they are a bank, after-all!)

Or at least how many victims there are or whether there is a class action, as in Spain

(EU Courts upheld miss selling, so UK should follow Spain, surely)

[slick132]

The SAR may well disclose info that is useful in several ways.

 

Have you sent it off yet ?

 

[dementia-elderly]

No SAR sent, do appreciate the suggestion...

partly as don't trust the process/banks honesty

and not needed, if they just continue the mortgage for a few years

 

Doctors letter sent today (tracked signed)

Fingers crossed

[slick132]

That's your prerogative, to not send the SAR. However, many cases here over years have been helped significantly by info disclosed by the bank in this way.

 

You may also now need to seek advice from the Court of Protection about getting formal recognition as YM's Representative. Remember that the bank will see the confirmation of Dementia not only as a reason to consider YM's condition but ALSO to make sure you or anyone else has proper authority to act and represent.