No payments to Halifax since 2011

[tonym2019]

Hi.

I took out a 25 year mortgage with the Halifax in 1986.

This still has a balance of around £10,000 and I have made no payments to them or any dealings since 2011.

While I understand the capital sum is not statutory barred for 12 years, being a mortgage, is my understanding correct that the interest is, as this becomes barred after 6?

They have resumed contact for the first time in many years recently and as I have not replied, they are now threatening action.

I got into debt in 2008 and am still struggling and I fell behind with the Halifax when I took out a sub-prime loan against the property.

Any ideas on how I should deal with Halifax? I do not want to do anything to lose the statutory barred portion of the mortgage.

 

Thanks,

 

Tony

[dx100uk]

is the charge on your home still there?

if so you've a weird interpretation of SB rules...

[tonym2019]

I haven't checked with the Land Registry but assume the charge is still there.

 

I have no knowledge of SB rulings but read:

 

For most types of debt in England, Wales and Northern Ireland, the limitation period is six years. This applies to most common debt types such as credit or store cards, personal loans, gas or electric arrears, council tax arrears, benefit overpayments, payday loans, rent arrears, catalogues or overdrafts.

There are some exceptions though:

• Mortgage shortfalls have a longer limitation period of twelve years for the money you borrowed (the ‘capital’), while the interest charged on this has a limitation period of six years

[BankFodder]

Please can you provide a link to your source for this.

[tonym2019]

 

Under Step Change website Bank Fodder, see here:

 

https://www.stepchange.org/debt-info/can-i-write-off-debt/statute-barred-debt.aspx

 

How does a debt become statute-barred or extinguished?

The laws set out the period in which a creditor has to begin court action. The length of time varies depending on the type of debt and is known as the ‘limitation period’.

In England, Wales and Northern Ireland:

For most types of debt in England, Wales and Northern Ireland, the limitation period is six years. This applies to most common debt types such as credit or store cards, personal loans, gas or electric arrears, council tax arrears, benefit overpayments, payday loans, rent arrears, catalogues or overdrafts.

There are some exceptions though:

• Mortgage shortfalls have a longer limitation period of twelve years for the money you borrowed (the ‘capital’), while the interest charged on this has a limitation period of six years

 

 

Edited September 16, 2019 by tonym2019
add info

[AndyOrch]

20 Time limit for actions to recover money secured by a mortgage or charge or to recover proceeds of the sale of land.

(1)No action shall be brought to recover—

(a)any principal sum of money secured by a mortgage or other charge on property (whether real or personal); or

(b)proceeds of the sale of land;

after the expiration of twelve years from the date on which the right to receive the money accrued.

 

(2)No foreclosure action in respect of mortgaged personal property shall be brought after the expiration of twelve years from the date on which the right to foreclose accrued.

But if the mortgagee was in possession of the mortgaged property after that date, the right to foreclose on the property which was in his possession shall not be treated as having accrued for the purposes of this subsection until the date on which his possession discontinued.

 

(3)The right to receive any principal sum of money secured by a mortgage or other charge and the right to foreclose on the property subject to the mortgage or charge shall not be treated as accruing so long as that property comprises any future interest or any life insurance policy which has not matured or been determined.

 

(4)Nothing in this section shall apply to a foreclosure action in respect of mortgaged land, but the provisions of this Act relating to actions to recover land shall apply to such an action.

 

(5)Subject to subsections (6) and (7) below, no action to recover arrears of interest payable in respect of any sum of money secured by a mortgage or other charge or payable in respect of proceeds of the sale of land, or to recover damages in respect of such arrears shall be brought after the expiration of six years from the date on which the interest became due.

 

http://www.legislation.gov.uk/ukpga/1980/58

[tonym2019]

Thank you for the information Andy, 

 

In stating section 5 below, when I attempt to sort out the repayment of balance, should I state to Halifax that I am aware that the interest portion is not enforceable and only offer to clear the capital sum, or am I being a complete idiot and totally misinterpreting what I am reading?

 

(5)Subject to subsections (6) and (7) below, no action to recover arrears of interest payable in respect of any sum of money secured by a mortgage or other charge or payable in respect of proceeds of the sale of land, or to recover damages in respect of such arrears shall be brought after the expiration of six years from the date on which the interest became due.

[AndyOrch]

Is this Halifax direct that are writing or a DCA ?

[tonym2019]

Directly from Halifax

[AndyOrch]

Well They still have a further 4 years with regards to the Capital content and without specifics of the interest  content which I assume must be considerable hence your initial post and wishing to avoid it you are still liable for the capital and at risk of litigation or possible repossession (I assume you still reside in the property mortgaged ?

[tonym2019]

I am more than happy to pay the capital amount and would have agreed the interest as well, had that not become unenforceable.

 

I just needed clarification on whether I was correct and advice on how to approach this, as once I contact them the SB bar is reset.

 

Should I email them requesting they recalculate the debt owing as I believe that no payments have been made since 2011?

 

 

[AndyOrch]

You have not answered my points above to determine the best course of action.....

 

How much is the interest content ?

Do you still reside in the property in connection to this mortgage ?

 

Also have you been receiving annual statements for this debt ?

And Notice of Sums in Arrears ?

[tonym2019]

 

Sorry Andy, I thought I had mentioned that I do live there in my last post.

 

I do still get annual statements from them, but not with me at the moment. I cannot remember getting a sum of arrears notice in several years. 

 

Not sure on the interest portion but £500 added in last 6 months.

 

March 2019 letter (no specific date) has balance £10,004.53

18 July 2019 letter £10,422.30

20 August 2019 letter £10,464.43

10 Sept 2019 letter £10,510.40

 

[AndyOrch]

Thanks.....a few more questions,,,,,trying to get an angle on this.

 

Do you have a current mortgage on the property with another lender and this one to Halifax was that a second mortgage ?

[tonym2019]

Main mortgage is with Halifax and second one with Together.

[tonym2019]

Andy, do you need me to get the Mortgage Statement for any info or did you just want to check they were being received each year?

[AndyOrch]

Wow how bizarre.....25 year mortgage with  Halifax...due to mature in 2011...no payments made since 2011....creditor has never started repossession process  and still sending out statements.

 

Capital amount will become statute barred in 4 years 2023...interest being added to a matured presumably ended agreement.

 

DId they contact you towards the end of the term of this agreement for your proposals of payment ?

[tonym2019]

 

Wow how bizarre.....25 year mortgage with  Halifax...due to mature in 2011...no payments made since 2011....creditor has never started repossession process  and still sending out statements. The only form of contact for many years has just been an annual statement

 

Capital amount will become statute barred in 4 years 2023...interest being added to a matured presumably ended agreement.They are threatening action if the balance is not paid or we contact them by tomorrow

 

DId they contact you towards the end of the term of this agreement for your proposals of payment? We are talking about 8 and a half years ago, officially mortgage ended March 2011 but I can trace payments up to September 2011. At that point they were still looking at it as a mortgage in arrears and can't recall any discussions about proposals of repayment other than carry on paying until repaid.

[AndyOrch]

I would contact them and try to agree a payment plan...I would forget the interest and SB argument ...it negligible to the amount involved here,,,but if you want to negotiate it  as a F&FS so be it but you can't argue that they have not been reasonable here ....most would have had you out of the property by 2012.  

[tonym2019]

At the end of the day, I tend to agree that they have been more than reasonable.

[AndyOrch]

So time to negotiate...