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JGM
JGM, Solicitor
Category: Property Law
Satisfied Customers: 11553
Experience:  30 years experience in property law.
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We have an interest only mortgage. My husband turned 70 so

Resolved Question:

We have an interest only mortgage. My husband turned 70 so the mortgage was due. Due to the fact his investments went bust we were unable to pay off the loan, but have made the payments, we are not in arrears and can well afford the payment. The mortgage company agreed to extend the loan for one year. We have put our home on the market. It appraised at £320K we have reduced down to offers over £275 and still hoping it will sell. It has been on for 6 months. We explained to them at the time due to a mould problem and repairs we were not living in the property and could not move back in until April then it had to be redecorated. We stayed true to our words. It is on the market. I e-mailed RBS to update them because when I last spoke to them they said, "let us know if you need more time" Now, they are wanting to do a mortgage review. The extension expired, yet they have been accepting our monthly payments so does this not imply the contract with them is still valid?
Submitted: 2 years ago.
Category: Property Law
Expert:  JGM replied 2 years ago.
The mortgage contract will provide that RBS can reach an accommodation with you (which they have done) but that that doesn't prejudice their rights to rely on the contract itself. So RBS are not bound by any variation they may agree from time to time.
In practice a mortgage review is likely, in the circumstances you describe, to result in further time being given to you to sell the house.
An alternative that you might want to consider is to go to another lender, Santander is one, for an interest only mortgage for life on the basis that the house will be sold on death.
You might want a cat with a financial adviser to see if there is product that might suit your circumstances.
Customer: replied 2 years ago.

One further question if the bank decided not to continue our mortgage even though our payments are up to date and have never been late plus as agreed with them we put our home on the market What are our rights as far as foreclosure and /or how long would it take them to put this in place? I see this as age discrimination. My husband my be 70, but he is not retired he the Chairman of a company and we have plenty of assists plus I work! I think a Judge would feel they were being unreasonable under the circumstances. It is hardly our problem that the real estate market in Scotland is slow this time of year. Our mortgage is in England and the property is in Scotland does that make a difference. ?

Expert:  JGM replied 2 years ago.
Where the property is doesn't matter.
As you haven't paid the mortgage off as agreed the lender could apply to the court to sell the house. Your argument would not be one of the discrimination. It would be that the property is already on the market for sale.
The lender would have to serve a calling up notice. That is two months. The lender would then have to go to court. That is another six months at least. Presumably you will have the house sold by then if necessary.
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