4m x 3m Omlet pen, cube, new auto door still boxed and coop light

[Clur]

The credit crunch is biting and we are trying to change our existing mortgage to interest only for a maximum of one year (when we're not paying childcare for our youngest), and we can tie in the repayment of the capital with our pension.

 

This should be simple but our bloomin' bank is messing us around like no ones business - saying they want payslips, bank statements and a re-valuation of the house (and saying if the value of the house has dropped they probably won't do anything anyway). We aren't looking to remortgage or extend the term of the borrowing and have been advised by an independant FA that this should be a simple process of changing our existing repayment mortgage to an interest only one for a year.

 

We've been messed about by our branch so we wrote to the mortgage service centre, who have written to us to say they've referred this back to the branch, and I have now been on hold for 20 minutes to the service centre.

 

If the bank won't let us do this, we can't afford our mortgage and will be getting into trouble. Our credit rating isn't fab which has prevented us remortgaging with another lender, so really, our current bank are pushing us down a route where we will incur more debt through potential mortgage arrears.

 

Has anyone got any advice on how we can actually get the bank to listen and do something? We are trying to be responsible and raise this BEFORE we get into trouble and I feel like I'm hitting my head against a brick wall

[BeckyBoo]

I haven't got any advice but I'm with you on that one my luvvy and wanted to send you a vitrual hug and cup of tea, we're in a pretty similar position, it's just AWFUL. Hoping you get a good result

 

Mrs B

[Clur]

Been on hold for 35 mins now and desperate to get this sorted. Feel like crying - we've been trying to get this sorted for 4 weeks now.

[Leicester_H]

Hi

Can you make an appointment to talk to someone in person ??

H

[Mrs Webmuppet]

Go to the branch and demand an appointment and don't be fobbed off.

[New Girl]

Some banks allow you to take a payment holiday, would they allow you to do this? Then you could use the money you've saved to top up the payments for the year until you don't have to pay for child care?

 

Good luck, I think a lot of us know exactly how you feel.

[Guest]

I was going to say the same, get a face to face appt with one of their mortgage advisors.

[Clur]

Feel like crying. Have been on hold for an hour and a half and have just hung up. The problem is that we've seen the branch and they were beyond useless. They won't see we don't want to remortgage and when I explained this, the woman told me they wouldn't help as it "wasn't in our best interest". They also don't do payment holidays. Up until last week they weren't even cutting interest rates!

 

Am writing a letter to fax to the service centre and our local MP - just wish someone would help! We're trying to be responsible, we run cheap cars (659cc so lowest tax, insurance, petrol), have cut our food bills by half, don't have expensive gadgets etc to run, and have all but cancelled Christmas, the mortgage is the only sticking point and that's only for the next year until DD starts school and we can get rid of the childcare costs.

 

Am so frustrated by all of this.

[chickenanne]

You're doing the right thing.

 

In the past, it was easy to get self-certified interest-only mortgages, e.g. for self employed people telling the bank how much they earned, etc, and it was massively open to abuse. Banks also loaned money where people didn't have much chance of being able to repay. Lots of people defaulted, banks had huge bad-debt write offs, and stopped lending to each other, and here we are now.

The payslips etc are to show that you really do earn what you say you do, and that you can afford repayments on the remortgaged house: it's a safegaurd for the bank and also to their customers -strangely this would count as a new loan (even though really it's only changing the terms of your current loan!).

The valuation is becuase many people borrowed with no deposit or with 110% mortgages gambling that house prices would continue to rise. They didn't, and now people have a bigger mortgage than the house its secured on, leaving them unable to move and the bank with no security over the debt.

Banks have to avoid this as with a recession more people struggle to pay.

Banks also hate interest-only mortgages now, as they are higher risk.

 

It sounds like in your situation the bank has little reason to refuse the "new" loan. You're doing the sensible thing, you've considered your finances, you have a proper long-term plan. If you've been in the house for more than a couple of years, and/or you're mortgage wasn't for more than 90% of it's value, or you've improved the house, then the revaluation shouldn't be an issue. Try not to panic, I'm sure it'll all work out.

[Mrs Webmuppet]

You could also consider copying the Banking Ombudsman into the fax. I had major problems with a bank years ago and CC'ing the Banking Ombudsman into letters seemed to get the required response from the bank. Failing that, they hate negative publicity.......

 

Link thingy:http://www.obo.org.uk/consumer/complaints.htm

[Tina C]

Its hard to give advice without knowing your exact circumstances, which bank it is etc but the Guardian (and other newspapers) might take up your case - look online under the finance section.

 

Citizens Advice may be able to help too.

 

Can the IFA you spoke to help you, that is their job after all.

 

Try not to worry too much. Whatever you think of the government they are trying to put measures in place to force the banks to help out.

 

The payslips thing is absolutely normal and although the valuation may seem unnecessary its a sign of the times. But I would be annoyed too.

[New Girl]

Interest rates have just been reduced by 1%, would this help? Our mortgage has halved in recent months.

[Clur]

Unfortunately we don't benefit from the interest cut as we're on fixed rate. I've already supplied payslips, P60 and my hubbies pay is put into the same bank as we hold the mortgage with (he's lost two of his recent payslips).

 

We're meeting the payments at the moment, it's just next year we'll be facing problems (the mortgage actually goes up slightly from Jan). DH is trying to get some evening work and we've cut our cloth accordingly. I can understand the reasons the banks are nervous about lending, but even if they revalue the house and it's worth a lot less, they can't take away our existing mortgage - so why aren't they willing to help us to cut our monthly costs for a year so we can keep it and pay off the mortgage over the term?! They'd not be out of pocket compared to if we gave up and handed the keys back. Our IFA is equally bemused and has also written to the bank for us.

 

I've just tried to call the service centre again and finally got through. I've refused to go back to 'our' branch as they've confirmed the advisor there isn't qualified to make any decisions, so we've just got another apt at a different branch in two weeks time.

 

Just upsetting that this is taking so much time to sort out and that no one at the bank appears to give a monkey's uncle!!! They'd rightly be onto us if we hid our heads in the sand and got into arrears, but trying to solve things before there's an issue seems to be ridiculously difficult.

[freddie]

shame on the bank. Name them. I have business and private accounts with nat west and recently they've been beyond awful. I've gone grey with their "help" and they've had to pay out several times for gross negligence/ inefficiency. Dont be nice. they take 2 1/2 times off you in return for lending to you, so make them do the work for it. They sit on the loo every day, same as us all. Little gods..

Good luck

[Clur]

Just opened the post to a very nice letter from our MP. He's 'having a word' with the bank's chief exec, so we'll see what happens then. Would be lovely to see in the end of the year knowing what's going on.

[Shirl]

I really hope you can get the solution you need. Banks just don't seem to want to help do they?

[miffy]

dont know what to suggest except whats already been said, except keep copies of all letters, e-mails faxes sent & recieved and log all calls made or recieved with names dates etc, so you have all evidence if needed. CAB should be helpful to you. Good luck

[redhotchick]

Good luck getting this sorted.

It's very frustrating, and you are trying to be responsible.

Hope it gets resolved soon x

[Old Speckled Hen]

dont know what to suggest except whats already been said, except keep copies of all letters, e-mails faxes sent & recieved and log all calls made or recieved with names dates etc, so you have all evidence if needed. CAB should be helpful to you. Good luck

 

Yes, this is important.

You should be able to get a caller reference number every time you speak, just ask for one. Then they can't say they never spoke to you as they will have to record the conversation

 

Got me out of trouble with the VAT man

 

Best of luck