How Can I Deal With A Top-Up Mortgage I cannot pay?

[Peter54]

Hi all,

Looking for some advise please. I'd been having difficulties meeting my mortgage payment each month but finally came to an agreed repayment figure with my provider under MARP. The property is in gross negative equity so there is no chance of selling and a mortgage write down does not seem to be an option.

My problem - I remortgaged the property some years ago but I can no longer make payments towards my top-up loan. The top-up loan is also with the same bank.

They seem to be avoiding dealing with the top-up problem and I have been told that I should just focus on paying what I can towards my first mortgage and not pay anything on the top up mortgage for the time being. I do not have this instruction in writing so I am concerned.

I however took the option of paying a token amount off the top-up loan each month as I didn't feel right not paying something. I am embarrassed to say how much I pay towards this debt, but lets just say a begger on the street would probably be offended if you handed it to them.

Am I making things worse by paying this miniscule amount i.e. annoying the bank further?

Thanks.

Peter

 

[wbbs]

If you cannot afford any more for the top up then I would continue to pay what you are paying, I seriously doubt you can make the situation worse by paying any monthly payment.

 

[coleman]

Unfortunately I am angry at this:

'They seem to be avoiding dealing with the top-up problem '

Why do the banks still have solely one dept regarding mortgage debt, another regarding 'top up' debt, another regarding 'overdraft debt' and another regarding 'credit card debt' among other debts??? Isn't it a bit of a joke, when one wants to go to the bank to talk about 'the debt' to be told 'oh, we only deal with the 'top up' debt' - nothing else'. Am I the only one that thinks this is just completely wrong?? How do they expect to come to a resolution if they don't even talk to each other??

 

[Peter54]

Completely agree with you Coleman. I have asked them to consolidate the loans but they say it will not help the situation. Top up loans are just completely brushed aside. Its all very frustrating.

 

[Brendan Burgess]

Hi Peter

Are the two loans mortgaged on the same property?

Are they the same interest rate?

Then it simply does not matter whether you pay one or the other.

It's possible from their accounting, that if you pay one in full, only one is in arrears. If you pay a bit towards both of them, they might have to report two loans in arrears.

I do not have this instruction in writing so I am concerned.

Do you have the name of the person who told you this? Then you should write to him and confirm your agreement and outline what you are paying and why. You could also ask them to confirm that this is in order.

Brendan

 

[Peter54]

Hi Brendan,

Yes, the top-ups are mortgaged on the same property.

No, they are different interest rates.

Yes, I have the name of the person who advised so I will confirm in writing with them.

Would it make any difference if they put the loans together rather than separating them?