Mortgage term completed - outstanding arrears

trad

We bought our home in 1985 on a 20 year mortgage.

In 2005 we took out a small mortgage to carry out home improvements etc. over 6 years.

The term of this mortgage has now expired but, like a lot of people, we've had our financial woes and there is about €15,000 outstanding in arrears which I have been paying down on a weekly basis by direct debit.

It has been indicated to us by a former employee of the lender that if the lender hasn't recouped the full amount within the mortgage term that we are not liable to pay the outstanding ballance.

Any insights?

chris85

trad wrote: »

We bought our home in 1985 on a 20 year mortgage.

In 2005 we took out a small mortgage to carry out home improvements etc. over 6 years.

The term of this mortgage has now expired but, like a lot of people, we've had our financial woes and there is about €15,000 outstanding in arrears which I have been paying down on a weekly basis by direct debit.

It has been indicated to us by a former employee of the lender that if the lender hasn't recouped the full amount within the mortgage term that we are not liable to pay the outstanding ballance.

Any insights?

Never heard of that myself. Doesnt make sense. Is this former employee in mortgages? You have failed to meet the contractual payments to complete it by the end of the term and must meet the arrears.

BuffyBot

Sounds like a load of nonsense tbh, and not something I've ever heard of.

rameire

its popycock,
but if the top up was a separate loan to the main mortgage, the top up may not have been secured against the property.
thus in theory your could treat it like a personal loan, although the rate is prob favourable due to being a mortgage.

so, if you had the cash, I would offer them a settlement figure which was less than the amount outstanding.
its worth a try

chris85

rameire wrote: »

its popycock,
but if the top up was a separate loan to the main mortgage, the top up may not have been secured against the property.
thus in theory your could treat it like a personal loan, although the rate is prob favourable due to being a mortgage.

so, if you had the cash, I would offer them a settlement figure which was less than the amount outstanding.
its worth a try

They will not for a settlement figure on a mortgage balance. Even on a personal loan it is unlikely any settlement would be done. Next you will say offer them 50% and they are lucky to get it. :rolleyes:

OP, work with the bank to meet your obligations but whatever this friend is telling you is just not true.

trad

Thanks for the comments, pretty much as I had thought. Have every intention of clearing the arrears in time.

rameire

chris85 wrote: »

Next you will say offer them 50% and they are lucky to get it. :rolleyes:

.

Nope:rolleyes::rolleyes:
Why would I say that.