# Looking for interest only mortgage on compassionate grounds



## Thirsty (30 Jan 2012)

Some one I'm close friends with is in the final stages of cancer and is not expected to live more than 12 months.

The person is unmarried and does not have children.

They have requested that their mortgage be put to interest only, on compassionate grounds, to allow them some extra funds and permitting a bit of extra comfort in their final days.  They have never missed a mortgage payment or had any repayment loan issues.

The bank in question initially sent out the MARPS for completion, it was returned with a letter from my friend stating that they were not in arrears, the request for interest only is on compassionate grounds and here's a letter from the Dr. confirming medical condition.

Letter no. 2 from bank now tells them that they ARE in arrears to the sum of  €nnn,nnn i.e. the total mortgage amount (!) and that they have to complete the MARPS form.

Three letters, two phone calls and the bank still cannot grasp that this person is *dying*... 

Whilst I feel like personally steaming down to the head office and hitting someone, I recognise that isn't the best approach.... 

Any suggestions?


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## Brendan Burgess (30 Jan 2012)

From a totally practical point of view, he can just stop paying if he wants. However, it would be "nicer" for just cancel the direct debit and to set up a Standing order for the interest only.

The bank won't be able to do anything practical about it.  There is a 12 year moratorium on legal action anyway.  

As a matter of interest, which bank is it?

Brendan


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## wbbs (30 Jan 2012)

Totally agree with Brendan, cancel direct debit and pay whatever available manually or by standing order.   Otherwise your friend needs to meet with a real live person in the branch and not be fobbed off to head office departments, this type of thing needs the personal input of branch staff in my opinion.


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## iscritto (30 Jan 2012)

I am really sorry to hear about your friend. 





> Whilst I feel like personally steaming down to the head office and hitting someone, I recognise that isn't the best approach....


  Without the "hitting someone" part maybe calling to the bank is not such a bad idea. If this does not work then I agree with Brendan stop the direct debit, send a letter to the bank that they have to contact your friend by letter only ( otherwise the bank will keep calling).  It would be so much better if someone in the bank would just actually care !!!! Awful.


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## mercman (30 Jan 2012)

I'm sorry for your friends troubles.

However if looking for compassion, they are not going to get it from the Bank. Look at the state of the country thanks to persons working in Banks. Greed is their only course of action.

Tell your friend to act with their heart. And this doesn't mean they can't do the obvious. Good luck to them.


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## ClaireM (30 Jan 2012)

They can stop paying but they will keep getting letters and phone calls and maybe even someone knocking on their door. If they want to avoid that they really do need someone to fill in the standard financial statement with them and agree a restructure to interest free.

When someone goes into arrears the bank have to apply MARP they don't have a choice.


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## DrMoriarty (30 Jan 2012)

With respect, I must disagree with the last poster's assessment, and second Brendan's and iscritto's suggestions.

The banks have never felt bound by any legislative, judicial or moral prerogatives — that's for saps like us. Expecting a compassionate response from them is rather like expecting a snake not to bite.

My deepest sympathies go to your friend; it says a lot about him that he is even bothered about trying to continue his interest repayments. If he dies, the bank's money will be repaid in full by the insurance company that underwrites the mortgage protection policy he's paid for all these years. 

Personally I would stop the DD, write to them to explain my position and request them not to contact me other than in writing.


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## mercman (30 Jan 2012)

ClaireM said:


> When someone goes into arrears the bank have to apply MARP they don't have a choice.



Is that before or after some decent politician decides to cut the lifeline for these dozey greedy people ??? Please stop taking the moral high ground and defending Banks. They simply don't deserve cover up for their spoof, and the Irish people should not be forced to beg any longer for others incapabilities.


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## ClaireM (30 Jan 2012)

mercman said:


> Is that before or after some decent politician decides to cut the lifeline for these dozey greedy people ??? Please stop taking the moral high ground and defending Banks. They simply don't deserve cover up for their spoof, and the Irish people should not be forced to beg any longer for others incapabilities.




Principles are fine but they won't stop a bank harassing a dying man because they have a policy to implement. The letters will be computer generated and the calls will come from someone who doesn't know the full situation.

Enter MARP, appoint a third party to deal with it as is his right and then make the most of the time he has left.


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## Brendan Burgess (30 Jan 2012)

How about stopping paying pending completion of the SFS? 

Brendan


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## Bronte (31 Jan 2012)

ClaireM said:


> Principles are fine but they won't stop a bank harassing a dying man because they have a policy to implement. The letters will be computer generated and the calls will come from someone who doesn't know the full situation.
> 
> Enter MARP, appoint a third party to deal with it as is his right and then make the most of the time he has left.


 
Fully agree with this, banks don't listen to people and the dying person will only get more grief.  OP as a friend why don't you help to fill out the Marp form with him, and enclose a letter stating that correspondance should only be in writing (to avoid phone calls).  Dealing with it now will save a lot of unnecessary hassle.


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## Thirsty (31 Jan 2012)

I'm 100% in agreement with you in regards to the 'just stop paying them' (and its certainly what I would do); but there's no way they will do that.

First of all it would go completely against their values/character etc., to do so and would only bother them more.

Secondly, my friend is convinced they are going to have a miracle and will survive for a long time yet so doesn't want to cause themselves problems.

(I'm aware of incredible things that can happen in regards to cancer patients, but the reality is that the prognosis here is very poor).



> When someone goes into arrears the bank have to apply MARP they don't have a choice


Just to point out they are_ not in arrears_ and never have been; MARP process is *not *the appropriate thing to do here.

But from what you are saying we are wasting our time?

Brendan - just re-read your post - what do you mean about 12 year moratorium on legal action? Can you explain more?


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## ClaireM (31 Jan 2012)

Why is MARP not appropriate , it is for those in arrears or those who feel they are in danger of falling into arrears.

If your friend spends the money on making his life more comfortable for the time he has left he will only be able to pay in test and therefore will be in arrears? If that is correct then he can apply to be in MARP.


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## Bronte (31 Jan 2012)

Thirsty said:


> Letter no. 2 from bank now tells them that they ARE in arrears to the sum of €nnn,nnn i.e. the total mortgage amount (!) and that they have to complete the MARPS form.


 
Actually I think the bank are trying to help your friend, just get him to fill out the MARPS form and see what happens, might help if he missed a payment or two if necessary.


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## Thirsty (31 Jan 2012)

ClaireM, they are not in arrears, nor are they in danger of falling into arrears; and they are definitely not prepared to miss payments in order to be in arrears.

They would like to have some extra money each month to be able to perhaps do those things that they've not done up to now and/or buy a few things that might make them more comfortable at home.  It doesn't strike me as being an unreasonable request.

Not only did the size and 'depth' of the MARP form fill my friend with dismay at the amount of work required (and unless you have been seriously ill I doubt you would understand); but they are (not unreasonably) very annoyed that after a lifetime of prudence and good governance they are treated in this way.

Anyway, I think the personal appointment is the way to go now; thanks everyone.


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## Bronte (1 Feb 2012)

Thirsty said:


> ); but they are (not unreasonably) very annoyed that after a lifetime of prudence and good governance they are treated in this way.
> 
> .


 
Banks don't see people, they only see numbers. Your friend seems to be unduly upset at his treatment, unfortunately that is the nature of a banking relationship.


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## Brendan Burgess (1 Feb 2012)

One of the problems is that the MARP is mandatory from a regulatory point of view, as is the Standard Financial Statement. 

There needs to be a MARP light as a first step if the lender and borrower agree quickly to a course of action. For example - I should be able to phone my bank and say "I have lost my job but will be starting another in 2 months' time - can I have a payment break for 3 months?"  

This doesn't help your friend though.


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## Thirsty (15 Mar 2012)

Update

thanks everyone for your posts on this topic.  Just thought you'd like to know that bank agreed to interest only for 12 months.

I still feel that the amount of paperwork expected (income & outgoings, 6 months bank statements, utility bills etc) under the circumstances was excessive for a person who is seriously ill & added unnecessarily to the stress. 

It took them over a month to compile everything where a healthy person would have it done in a matter of days.

Essentially the only reason for the request to go interest only in the first place was serious illness; the Doctors letter should have been enough.

However my friend won't lodge a complaint so I guess I can do no more.
thanks again.


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