You are here: Home - News -

County Tyrone man loses repossession fight with BoS over interest-only mortgage

by:
  • 31/05/2017
  • 0
County Tyrone man loses repossession fight with BoS over interest-only mortgage
A County Tyrone man who is fighting a repossession order from Bank of Scotland has lost his appeal to keep his home after failing to make any payments for almost three years.

Representing himself at the High Court, Gerard Herron, Dungannon, denied responsibility for the mortgage account and claimed the bank did not have a legal claim to the property.

In a report in the Belfast Telegraph, Herron allegedly took out a 10-year interest-only mortgage with Halifax in 2007. The balance was £320,000. Herron defaulted on the mortgage in 2011 and made no further payments after August 2014. The outstanding balance of his mortgage now stands at £433,000 secured against a property estimated to be worth £286,000.

Madam Justice McBride ruled that Herron had lived effectively rent free for three years in a property which was now in negative equity.

Herron claimed Bank of Scotland (BoS) did not have any legal entitlement to the property because he took the mortgage out with Halifax, and therefore BoS was not a party to the mortgage deed. However, a re-organisation of HBOS banking group had seen Halifax business moved to BoS.

Herron also alleged that there was a lack of supporting evidence for his repossession case and would not confirm or deny whether the signature on the mortgage deed was his.

The judge ruled that it was his signature and the debt had been transferred to BoS. The original possession order was given the court’s support. Herron indicated he may mount a further appeal.

Bank of Scotland could not be reached for comment.

There are 0 Comment(s)

Comments are closed.

You may also be interested in

Business Skills

In this section, we offer short ‘how to’ guides on harder to crack areas of business. From social media, to regulation or niche product areas, we cover it all.

Profiles

Our journalists interview key industry entrepreneurs, strategists and commentators for day-to-day market insight and a strategic view of where the industry is heading. We offer lessons for success and explore the opportunities for your business

Success in Practice

Here, we share case studies fleshing out best practice to help you decide what could work for your business. Take a look at how others approached complex tasks like launching a new mortgage lender, advising on a new product area or deciding to specialise in another. Learn from others mistakes and triumphs.

Marketwatch

Each week, we ask top mortgage and property commentators with a unique perspective to examine a key news headline, market move or regulatory or political issue.

Poll

Vote in our weekly poll here. It’s your chance to tell us what you think and be heard on the top news stories of the week. Review our archive to find out what your industry really thinks and all our coverage of the results.

Top Comments

Be part of the conversation on Mortgage Solutions. We want to hear from you. We have a tool called Disqus to tell us which stories get the most comments each week. Every Friday, the team picks the most thoughtful or opinionated contributions from our readers to enjoy again. Don’t forget to share your favourite stories from the site on social media to keep the conversation going.
Read previous post:
A digital world, automation and computer technology
Mortgage automation: Friend or foe for mortgage advice?

 

Close