Help - mortgage arrears issue

[Besidemyselfwithworry]

Right so I’ll try to keep this brief

we have a house it’s worth £350-380k (valued just before Christmas)
outstanding mortgage is £160k

so loan to value is fairly ok

rewind to Oct 2024 - we had a massive car bill and asked the lender for a mortgage holiday. This was agreed and sorted and we didn’t pay in October 24 and then they didn’t take the money out in Nov and Dec - our understanding was it was a payment holiday for 3 months

Jan 2025 spoke with them the said should have only been one month I said why wasn’t it taken out the bank then we understood 3 months they said WE should have reset up direct debit????

anyway they said right instead of £xxx per month it’s going to be £xxxxx plus £40 to clear these arrears

all ok

then after 6 months they started just taking the lower amount no explanation it went back to lower amount not with the extra £40

they then wrote to us we got the letter last week saying they’re starting legal proceedings for the arrears which are about £3900

looking at the loan to value etc and the circumstances does this sound a bit extreme??

I’ve spoken to the lender they’ve sent an income and expenditure online form to “assess our options”

im absolutely stressed to the hilt and im worried sick - has anyone been in a similar position?

Should add that when I spoke to them they said the extra £40 arrears agreement was only for 6 months and this then expired and I said to them why would they expire something that wasn’t paid off - all very odd

but I’m beside myself worrying we will loose our home

sounds like a shit show. i’d be looking out evidence to back up what i’m saying and write to them recorded delivery. ypu womt lose your house. it’s in their best interests to keep getting money from you.

I would make a formal complaint - having to restart your own direct debit doesn't sound right, nor do they sound professional or competent. Surely there should have been some kind of written confirmation on their part?

@TalulahJP
thankyou
I’ve been so upset - we’ve only got
this house because my nanna died and left us
the deposit money otherwise we would still be renting and the kids are happy and settled I’m just devastated they’ve taken it this far for such small arrears
x

Definitely make a formal complaint

@herbalteabag
trying to get hold of a real person is a nightmare! They open m-f between 9-5 which is hard when you’re at work and can’t have these sort of discussions at work.

but yes I think a formal complaint is the way forward potentially

Submit a formal complaint.
Attach your request for a break.
Submit their approval.
Highlight that their approval didn't mention anythung about reinstating the direct debit and you assumed it was within their control (if this is accurate).
Ask why you had no phone/email or written contact about the written payment in month 2 and 3.
Ask why they changed the direct debit back to the lower amount & when they advised you of this and see a copy of their communication.
Ask for a full breakdown of both their explanation and their interest and arrears calculation.
Ask that they consider the entire request badly handled, poor communicated and not brought to your immediate attention when the issue arose.
Suggest that by way of rectification, that they waive any penalties or arrears interest and suggested a proposed repayment plsn for the arrears with an expressed preference that the 3 months missed are added to the end of your term.
Ask that your credit bureau record is corrected to show no arrears or missed payments as a result of this incident.

Use their offical complaint process to do this. It should be available on their website.

Ps - add the missed payment will increase overall interest paid - only do this if you've no other way of clearing the arrears.

I would look for their online complaints form. You want everything to be in writing.

And then if you're not satisfied there is the financial ombudsman.

@AwfullyGood
thanks so much for this, sound advice