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Original poster

Urghh stuck and nobody offering any advice

81 replies

workiskillingme · 07/11/2022 19:26

So when we got our mortgage in 2006 we needed to borrow a bit more with another loan from the same building society. Some how this loan got separated from the main part of the mortgage payment and we were paying x amount for that loan and x amount for the mortgage. Every few months they then said we need to pay more etc and we needed to do an income and expenditure then they would tell us what to pay. Fine. Fast forward to now they didn't alter our mortgage payment like they said they were going to and send us a default notice saying it's gone unpaid despite them saying the amount would be added to our existing mortgage payment .
The dilemma is we need desperately another bedroom for our son. If we can't borrow money to either move or get an extension we are screwed. I spoke to a financial adviser who was usually and gave no advice at all
What would people advise in this situation?
Thanks in advance

OP posts:
LittleBearPad · 07/11/2022 21:41

I assume it was a tracker mortgage?

Have you evidence of everything that happened - letters etc, bank statements. If so then I would make an appointment with your bank to explain and try to unravel it.

But you won’t be able to borrow more until you’ve sorted this out.

parietal · 07/11/2022 21:45

post a floor plan of the house in the 'property' board and you'll get lots of suggestions for how you can re-arrange rooms or split things up so the two kids are not on top of each other.

get full details of everything about the loans from the bank & sort things out.

bigfamilygrowingupfast · 07/11/2022 21:59

Find a really good mortgage broker for example and write to them with a great letter (there may even be templates online). We had a default on our account (something similarly ridiculous and I can't even remember what it was now!!) but we sent numerous emails and finally found a template and filled it in and they deleted it from their history immediately and admitted their mistake

Original poster
workiskillingme · 07/11/2022 22:05

I think when we had a debt management plan we added the unsecured loan to that. But for some reason it came off it and I've no idea why

OP posts:
Original poster
workiskillingme · 07/11/2022 22:06

Because one is 16 and one is 7!

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tenbob · 07/11/2022 22:09

Why did you have a debt management plan?
was this for something other than the mortgage and loan?

In the nicest possible way, your finances have been quite messy for quite a long time - not paying attention to your loan since 2006 is pretty chaotic

the last thing you need to be doing is looking at a way of borrowing more money when you are struggling to deal with what you have already taken out

Original poster
workiskillingme · 07/11/2022 22:13

I want to consolidate our debt with a remortgage is annoying to have so much equity but be unable to do anything with it that could improve things for us

OP posts:
Original poster
workiskillingme · 07/11/2022 22:15

tenbob · 07/11/2022 22:09

Why did you have a debt management plan?
was this for something other than the mortgage and loan?

In the nicest possible way, your finances have been quite messy for quite a long time - not paying attention to your loan since 2006 is pretty chaotic

the last thing you need to be doing is looking at a way of borrowing more money when you are struggling to deal with what you have already taken out

That's the thing we've never missed a payment on our mortgage. Just this together loan payment as they ballsed it up when separating it and saying we would be paying this new amount with our main mortgage payment - they told us it would be one payment

OP posts:
titchy · 07/11/2022 22:16

workiskillingme · 07/11/2022 22:06

Because one is 16 and one is 7!

If they're the same sex they can still share. I assume they're sharing now? If different sex then you'll have to sleep in the living room.

But your finances sound chaotic. Getting them in order is you priority, not taking out extra borrowing to get an extra bedroom you will probably end up defaulting on.

tenbob · 07/11/2022 22:17

But the equity isn’t a pot of free money to dip into!

You are relatively close of paying off your mortgage after what sounds like 15+ years of a pretty bad financial situation

When that is done, you’ll have a level of stability and security but you also need to get a massive handle on your finances so you don’t lose your house at some point.

You are being very blasé about the situation but probably need to see this as a wake up call to not live beyond your means, and that includes being realistic about the size of house you can afford

You cannot take on extra borrowing when you are struggling with the amount of debt you already have

titchy · 07/11/2022 22:17

they ballsed it up when separating it and saying we would be paying this new amount with our main mortgage payment - they told us it would be one payment

Did you get that in writing? Did you check your annual statements? Did the repayments seem as if both mortgage and loan were being repaid?

Original poster
workiskillingme · 07/11/2022 22:29

Yes- it only defaulted in March

OP posts:
Original poster
workiskillingme · 07/11/2022 22:32

They set it at a certain amount yet appear to have been taking 100 less a month

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titchy · 07/11/2022 22:40

workiskillingme · 07/11/2022 22:32

They set it at a certain amount yet appear to have been taking 100 less a month

And you never queried this? Never checked the balances were decreasing?

Original poster
workiskillingme · 07/11/2022 22:41

Not really no

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Nutmeg321 · 07/11/2022 22:49

Geez, talk about burying head in the sand…

titchy · 07/11/2022 22:53

Well you can't afford an extra bedroom so you'll have to start paying back the defaulted loan. And your kids stay sharing (really not that big an issue) or you sleep in the living room.

TomTraubertsBlues · 07/11/2022 22:55

I appreciate the teen wants their own room, but in the real world we don't always get what we want. I shared a room until I left home, I survived.

Do not even consider selling your family home over this.

I'd arrange a call with the mortgage company - find out exactly what you owe on this second loan and what you'd need to pay to clear the default. They will have records of you paying over the years surely, so won't want to do anything drastic.

TomTraubertsBlues · 07/11/2022 22:57

workiskillingme · 07/11/2022 22:13

I want to consolidate our debt with a remortgage is annoying to have so much equity but be unable to do anything with it that could improve things for us

That's not really how equity works... anything you borrow against it will need to be paid back with interest.

Honestly, don't do it.

Two same sex siblings can share, it's fine. They may not like it, but that's life. It's not worth extra debt.

Original poster
workiskillingme · 07/11/2022 22:59

TomTraubertsBlues · 07/11/2022 22:55

I appreciate the teen wants their own room, but in the real world we don't always get what we want. I shared a room until I left home, I survived.

Do not even consider selling your family home over this.

I'd arrange a call with the mortgage company - find out exactly what you owe on this second loan and what you'd need to pay to clear the default. They will have records of you paying over the years surely, so won't want to do anything drastic.

They are literally a shit show. They wrote to us recently and said they'd been charging us too much interest on that part so refunded us 3k off the balance. They don't seem to have a fucking clue what's happening

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OutDamnedSpot · 07/11/2022 23:04

Surely that 3k overpayment is what should have gone on the loan? Who have you actually spoken to about all of this? You need to get all of your paperwork together and work out exactly what happened, then follow the company’s (bank? Debt consolidation service? Who messed up?) complaints procedure to the letter.

Forget about the bedroom situation for now. The 16yo has managed this long. They’ll be fine for a bit longer. Get the money sorted then decide what to do about rooms.

BloaterW1 · 08/11/2022 06:19

Something isn't correct, extra money was borrowed but the bank hasn't noticed until now that it hasn't been paid back at the right amount for 16 years.

TumbleFryer · 08/11/2022 06:24

You probably have no choice but to give the kids the two bedrooms and move yourself into the living room on a sofa bed until you can afford something better.

You really need to go and speak to the building society in person.

Original poster
workiskillingme · 08/11/2022 07:35

BloaterW1 · 08/11/2022 06:19

Something isn't correct, extra money was borrowed but the bank hasn't noticed until now that it hasn't been paid back at the right amount for 16 years.

No no it's only recently defaulted somehow- the default was applied in March

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BloaterW1 · 08/11/2022 07:49

I think you need to start from when you got the mortgage and loan and work on from that. I had understood you were paying £100 a month less than it should have been how long has this being going on for ?