I have a mortgage all up to date paying interest only. My arrangement with Nemo is behind with payments and have completed a budget plan with them and they accepted this seems funny that I applied for a secure loan yesterday with a company that said that they knew nemo well that I get this letter today, to much of a coincidence I think.
If you applied for another loan it will flag up on the credit reference file as a search, so that Nemo will know that you applied for another loan. Their concern will be that if you cannot pay their loan now, you will certainly not be able to pay it if you take on another commitment which is why they are threatening an application for repossession.
If you have ever had a problem with your mortgage, the mortgage lender might want to get rid of the account and would not oppose their application for possession.
It’s unlikely that the court would grant possession if you have come to an arrangement with the lender which is only four months behind although it depends on the situation before you came to the arrangement.
At this stage in time, courts are reluctant to grant possession unless there are at least six months of arrears and no chance that the situation will recover.
If they do instruct solicitors to apply for possession, you will have no option but to defend the action on the basis that you can bring the arrears under control and continue to repay some capital.
Can I clarify anything for you?