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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9605
Experience:  I have been practising for 30 years.
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I have a dispute with barclays regarding the term of my interest

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i have a dispute with barclays regarding the term of my interest only mortgage which has come to an end they do not have a copy of the original offer but are relying on annual mortgage statements they wish me to apply for a further loan which will be much more expensive assuming that i meet the lending criteria as i am newly retired can they enforce a contract that they do not have a copy of and is their anyone out there who thinks they could take this on with a chance of negotiating a settlement with them
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.
How much is the mortgage outstanding and what is the value of the property?How long have you had the mortgage for? Did they give you notice that it was coming to an end?It is a condition of all these mortgages that the borrower arranges a repayment vehicle. Why was this never done?What do you want the lender to do?
Customer: replied 1 year ago.
£250000.00 valuation last week £695000.00 14 years a redemption statement sent last June and annual statements
it was but the investment went wrong
i was informed at the begining that the mortgage was for 20 years and would mature in my seventieth year 2020 i have
contacted them a number of times over the years the last was in feb 15 mortgage they insist ends July 15 i am unable to
contact the solicitor who arranged the mortgage as he has been struck of for fraud and money laundering
i want them to allow me to continue for a period of time when i can either find an alternative repayment vehicle or sell the property at a later date before the maturity in 2020 i dont want equity release or for them to put me on a much higher rate
and due to my age etc i doubt i would meet their lending criteria anyway and to stop implying that they will go down the
eviction route i am not in arrears in fact i overpay by about £400 a month just want them to be reasonable and not so heavy handed insisting its their way or no way they have plenty of security in the equity they have none of the original paperwork
which would settle the matter i have been asking them for copies they have accepted they do not have any.
Expert:  F E Smith replied 1 year ago.
Thanks.The Financial Conduct Authority have not been particularly because they have said that they recognised customers remain responsible for paying the mortgage and it’s a contractual term and that lenders haven’t got to offer options. So the lender does not have to come up with any options. They do not have to allow you to carry on making your current monthly mortgage payments after the term expires.What the lender will probably say is pay the mortgage or get a new one or sell the house. Unsympathetic. However what they have said which is a little less unsympathetic is that it now expects lenders to deal fairly with interest only customers who risk being unable to pay their outstanding loan maturity without selling up.Practically, it does mean that the lenders are going to have to come up with options to improve the situation. There are millions of people in exactly the situation and the last thing they want to do is open the floodgates to a raft of mis-selling claims. Although the lender may threaten repossession, they are unlikely to do so for fear of upsetting the Financial Conduct Authority and the surrounding bad press.You may be able to claim that the mortgage was mis-sold if there was no proof that you were told what would happen when it reached maturity.What most lenders will do if you press them is extend the term and if you are only looking to extend for another 4 years, that is going to be your best option but, I emphasise, there is no onus on the lender to do that.What the lender may be more agreeable to do (and there is a lot of commentary in the financial press about this) is switch you to a repayment capital and interest mortgage now for the next 4 years with you repaying the balance in 4 years time. If you are paying an extra £400 per month, that would more than account for some capital repayment.What also muddies the water for them is your allegation that this loan was meant to go to age 70 and they have no paperwork to dispute that. Therefore, faced with an argument over whether the term has now expired or whether it should go for another 4 years, and bearing in mind that they are often extending mortgages for this period, whilst they may threaten all sorts of proceedings, it seems unlikely they would follow it through.Can I clarify anything for you?Please use the rating service to rate positive.Best wishesFES
Customer: replied 1 year ago.
would it be easier and less stressful for me to have legal representation with Barclays as i find them quite difficult to deal with
and if you believe it would how do i find a professional who has experience in this kind of situation plus if they went for eviction
my understanding is that unlike an arrears situation that it is a contractual dispute which would mean the court has less room
for compromise and judgements
Expert:  F E Smith replied 1 year ago.
You can find all the solicitors in the country on the Law Society website. www.lawsociety.org.ukYou are able to search by the area of law they work in and also the geographical location by postcode or town.If you do a Google search of the subject you may find solicitors advertising for this kind of work.What you are saying about having less room for compromise because this is a contract issue was the case a few years ago but because of the FCA guidance and the fact that lenders allowed people to enter into these contracts, the courts are now having much less sympathy with the lenders.Best wishes
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