These lenders contributed to the downturn in the UK housing market and now the unnamed persons who run these two companies are in my view systematically forcing people to sell properties that are in negative equity. These individuals are then pursued for the shortfall.
I believe both firms are not offering mortgage-holders, whose terms have come to an end, the support they need given their circumstances.
These mortgages have been paid on time each month, but the only thing these mortgage holders have fallen foul of is the mortgage term coming to an end and not having the funds to repay the loan.
Other lenders who were assisted by the government have extended the mortgage term without hesitation, such as Halifax, Birmingham Midshires and The Mortgage Business.
Other lenders who were not so keen to extend at the outset have consented to an extension since proof has been provided of negative equity and drastic loss of value. These lenders are Capital Home Loans, Chelsea Building Society and Bank of Ireland.
I ask this: why is there not a more proactive style of management being adopted to assist these borrowers?
The answer is to extend the terms initially for five years reviewable, raise the interest rate from 3.99 per cent to 4.99 per cent variable, and sell a selection of the mortgage book to other lenders on the proviso that they extend the term.
Patricia Simpson
Retired financial adviser
Solihull, West Midlands
RIGHT TO REPLY
UK Asset Resolution is committed to treating customers fairly and takes a proactive approach to working with customers at the first sign of payment difficulty.
We seek to contact all customers as they approach the end of their term to remind them of their obligations. Repossession is always treated as a last resort, although regrettably in some cases this is unavoidable and the sale of a property can be the best way to resolve the situation and minimise further losses for the customer and taxpayer.
UK Asset Resolution
West Yorkshire
