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Bank Of Scotland Mortgage Penalty Charges


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I lost my income in March this year and put my house up for sale. I have a £210000 interest only mortgage.

When I enquired about settlement figure the inevitable ERC was given as £6300. I queried this with Senior Customer Relations Manager on the grounds that I was suffering financial hardship due to being reliant on State Benefits. My request for charges to be waived was declined.

I know there has been many threads on this subject, but as I am unable at 62 to carry the mortgage to a different mortgage product as I have had to face facts of only being able to rent going forward, I see this as a totally different situation to customers who are solvent wanting to just ditch their current mortgage deal and find a better one.

House has not sold in 5 months despite now having 2 Estate Agents acting, whilst also reducing price by £20000.

If mortgage provider loses patience and starts repossession proceedings my belief is that ERC would disappear from equation.

Why therefore should ERC not be waived before it is too late? It is bad enough to lose owning a house and job but giving the mortgage provider an additional £6500 more than borrowed in 2005 when I am only 4 months away from ERC 2 year completion is totally illogical in my situation.

Any solution please??

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If you are only 4 months away from the completion of the ERC then I would be inclined to sit back and wait. The house is not sold and even if a buyer appeared tomorrow the paperwork takes at least 6 weeks.

 

I know it's not easy have you claimed for mortgage interest relief through the DWP? in some circumstances it can kick in straight away in others you have to be on benefits for 39 wks.

9/8 - Discovered Consumer Action Group Site:D

 

RBOS - Personal Account

10/8 - S.A.R - (Subject Access Request) to RBOS

17/5 - Defence lodged by RBS

24/5 - Court date

21/5 - Offer received:rolleyes:

22/5 - Offer rejected

25/5 - New offer received and accepted!!!!!!

 

MBNA Credit Card

10/8 - S.A.R - (Subject Access Request) to MBNA

Feb 07 Received payment in full...Yeh!!!!:-D

 

RBOS Business Account

25/5 - May 07 - Statements received

23/7 - Offered received

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Thanks Vonnie

Yes I have applied for Mortgage Interest relief and have been waiting reply from Pension Credits since July 4 when B of S sent back forms to DWP.

What is worrying to me is that I am now claiming Housing Benefit through Local Council simultaneously having vacated Mortgaged property on June 8 due to sale being cancelled 24 hours before exchange of Contracts. Renting had been committed. It was a major shock as vibes had been so positive

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