Hi Folks,
Around 2000 I took out a self-cert interest-only mortgage with TMB (a division of Halifax).
I increased the mortgage around 2005 to pay for an extension.
Around 2008 my finances improved so I asked TMB to convert to paying the mortgage as a repayment mortgage - they just said yes and upped my monthly payment accordingly. This was all done over the phone and I never signed anything, or got a new contract.
The year before last, I was made redundant, and got in touch with TMB to reduce my payment. They agreed over the phone, and I started making interest only payments again.
Coming up to the one year anniversary of this reduction they advised that they wanted me to swap back to interest plus repayments. My financial situation is such that I could not afford to do so.
In the first twelve months they counted the interest only payments
as my FCP - but now they are counting the FCP as the interest + repayment amount - and thus showing arrears on the mortgage.
To try to keep them happy I have increased my payment to £150 above the interest only value, but they are still pressing me to revert to full interest and repayment payments even though:
- The mortgage was originally interest only
- The property is valued at 240,000 and the mortgage is only 120,000.
Is this usual? Can TMB force me to make the repayment amount payments even though the original mortgage agreement was interest-only?
Around 2000 I took out a self-cert interest-only mortgage with TMB (a division of Halifax).
I increased the mortgage around 2005 to pay for an extension.
Around 2008 my finances improved so I asked TMB to convert to paying the mortgage as a repayment mortgage - they just said yes and upped my monthly payment accordingly. This was all done over the phone and I never signed anything, or got a new contract.
The year before last, I was made redundant, and got in touch with TMB to reduce my payment. They agreed over the phone, and I started making interest only payments again.
Coming up to the one year anniversary of this reduction they advised that they wanted me to swap back to interest plus repayments. My financial situation is such that I could not afford to do so.
In the first twelve months they counted the interest only payments
as my FCP - but now they are counting the FCP as the interest + repayment amount - and thus showing arrears on the mortgage.
To try to keep them happy I have increased my payment to £150 above the interest only value, but they are still pressing me to revert to full interest and repayment payments even though:
- The mortgage was originally interest only
- The property is valued at 240,000 and the mortgage is only 120,000.
Is this usual? Can TMB force me to make the repayment amount payments even though the original mortgage agreement was interest-only?