News - Lenders
Mortgage Solutions | 21 Nov 2011 | 10:55
Halifax has confirmed it will keep on sending letters to interest-only borrowers requesting information on repayment vehicles, despite broker criticism the letters are “intrusive.”
In an exclusive interview with Mortgage Solutions, Ian Wilson, head of sales at Halifax, said that the lender is “acting responsibly by asking the customer what their plans are for repaying the loan."
He said: “However long these customers have got left on their mortgage term, they should know from day one what they’re going to do to repay the loan.”
He explained that three letters have been sent to customers who have failed to get in touch with Halifax on how to repay their loan.
“Customers will only get a more strongly worded letter if they fail to respond to the three previous letters, which are much lighter in tone. We write to them because we need the information from them."
Halifax said that for customers who don’t have a repayment plan in place, it will look at their individual circumstances.
“One thing we might be able to talk to the borrower about is whether we need to extend the term to switch to repayment.”
Wilson added that he had not heard of any criticism of the enquiry letters on interest-only during Halifax’s broker forums.
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Recent comments
If they are going to write such letters to their existing interest only Clients, and the repayment plan doesn't fit in with the standard Halifax idea - what are they going to do about it - force them onto repayment. Somehow I think that the FSA might be contacted about that! Clients do have their own minds and some might even say at the end of the term I'm going to sell and return to rented. If they accepted them as Int only when they took out the mortgage - forcing Client into changing to repayment is against so many rules (written and unwritten)I can’t think where to start!!! Or am I being naive and Lenders can retrospectively rewrite agreements to the detriment of their Client forcing them into financial hardship. Kind Regards
El Tel
21 Nov 2011 | 11:38
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