Family’s second mortgage eviction fear
AFTER years of paying a hefty price for a second mortgage, a family has reached breaking point as it falls into arrears and fends off eviction threats.
In 2007, Maurice O’Reilly agreed to a contract arranged through a third party without realising its full implications. The money was for home improvements and meeting another debt.
In the course of borrowing £ 25,500 plus £ 3,000 in fees, Maurice agreed to repay £ 85,000 over 20 years. A 9.90 per cent interest rate grew to 13.97 per cent.
Maurice believes the way the agreement was sold to him was unfair, its terms complicated and claims there was a lack assistance available when he sought help.
“But I should never have let myself be persuaded,” Maurice, who has a nine- year- old child, admitted to Crusader. It was he who first approached the broker. According to current lender Prestige Finance, it was called The Loan Express Company. Following pre- completion calls and confirmations the loan was assigned to Swingcastle Ltd but transferred back to Prestige in 2015.
Maurice claims he was urged to bump up his earnings to improve his credit profile. But an independent expert Crusader consulted considers Maurice’s repayment terms high, even for those days.
While Maurice took advantage of a payment breather made available because of Covid, Crusader asked Prestige to review the arrangement. It confirmed he has repaid £ 34,497 so far and is £ 18,584 in arrears. Its new offer adjusts his remaining balance to £ 34,800, so on completion he will have forked out almost £ 70,000. There will be no interest to pay going forward, although some will still exist on arrears.
“We have, as a gesture of goodwill, written off all of the fees and charges that were applied as a result of Mr O’Reilly not maintaining payments,” Prestige said. “We are keen to work with him to discuss his current circumstances.”
But Maurice has just heard his income is to be halved. He has now contacted the Financial Ombudsman Service.
It can consider complaints concerning lending decisions and how someone has been treated when in financial hardship.
financial- ombudsman. org. uk, 0800 023 4567