Key Post Has anyone lost their tracker through renting out their home?

jonathan222

Registered User
Messages
3
Hello all,

A bit of a doozy here and looking for any previous similar experiences or advice.

My wife has a house, in her name, bought after we were married where her mother is named on the mortgage also. Wife pays the mortgage with no involvment from her mother.We lived in house for approx 3 years, as our PPR, and then due to family circumstances, we bought elsewhere and now rent out the house to a married couple. She was on an interest only(tracker) for a number of years and recently the bank have approched her to say that it's time to start paying the capital and Int back. We can't afford to do that (i.e. the full amount) at the moment so have started the standard financial statement (SFS) process. She has never missed a payment so far.

The bank are now saying that as my wife is named on another mortgage contract, she's changed the terms and conditions of the contract and it's not her PPR anymore, however having had a look in the contract it does not mention that the mortgage will be used only for a PPR specifically. It does state "family home" (once and unrelated to the conditions of the mortgage) but under the Family home protection act, the definition can be interpretted different ways. We are not unwilling to keep paying, but the bank just seem to want to get her off her tracker as a priority, and believe they are not listening to us and what we can afford to pay. In fact we've stated we could pay more in two years, once current set expenditure reduces, but the bank is also asking her mother to fill out an SFS now and also looking for details from me and to fill a form out also (again I have no contractual link to the mortgage, so I wonder are they chancing thier arm here and asking?).

I thought the purpose of the SFS and MARP was to work with buyers in difficulties(again not one payment has been missed to date by my wife) and find the tone and approach of the bank to be quite agressive.

Any thoughts would be appreciated.
 

elcato

Moderator
Messages
3,419
The bank are probably chancing their arm in stating that the tracker is not valid but it's perfectly reasonable for them to ask for SFS if you are not paying the original terms of the mortgage which is principle and interest. Not missing an interest only payment does not say you are not in difficulty as you clearly are if you can't pay the principle as well.
 

jonathan222

Registered User
Messages
3
The bank are probably chancing their arm in stating that the tracker is not valid but it's perfectly reasonable for them to ask for SFS if you are not paying the original terms of the mortgage which is principle and interest. Not missing an interest only payment does not say you are not in difficulty as you clearly are if you can't pay the principle as well.
Cheers for that and agree as we have no issues with going through the SFS process, but its more of them saying no to whatever we suggest based on what we can afford. It seems to be the case that they have done there own calculations, disagreed internally with what the system threw out and no are going after anyone linked to my wife.

It's all about the tracker with them is seems, which is strange as having done a bit of reading on it, majority of cases are saying banks will try to facilitate, unless you have flat out refused to pay, which we have not done, nor plan to do.
 

jonathan222

Registered User
Messages
3
Just to add to my post above, as I am not linked to the mortgage via the contract can the bank ask me for financial information and request I complete a SFS?
 

islander222

Registered User
Messages
5
Would anyone know where I should go to get a copy of my mortgage agreement so that I could check for myself if I would lose my tracker because I'm letting out my home renting another house?
I am reluctant to go to the bank in case it draws unwanted attention...
 

notabene

Frequent Poster
Messages
378
Would anyone know where I should go to get a copy of my mortgage agreement so that I could check for myself if I would lose my tracker because I'm letting out my home renting another house?
I am reluctant to go to the bank in case it draws unwanted attention...
Did you go through a broker originally? They or your solicitor may have a copy in your file
 
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