Deffering payment whilst selling property?greenspun.com : LUSENET : Repossession : One Thread
Could u please advise me of the steps involved in getting my lender (The Bank of Scotland) to freeze or defer interest payments only on my 100% mortgage whilst I try to sell the property. I have no endowment policy as I stopped paying it several years ago but did not notify the bank. I am also a full time universirty student and my only finace is a student loan. I would wlcome any advice that can be offered to help my situation. Thankyou.
-- Ian Lee Brown (email@example.com), January 10, 2003
You have to write and ask them for a moratorium on interest...but if you had no endowment for years how exactly are you going to pay off the mortgage? How come the bank didn't know that your means of repayment no longer existed? The interest accrues as soon as you default on an endowment policy, and this interest balance increases very rapidly. If this has been going on for years and you have a 100% mortgage, I dread to think what the balance is. Even with substantial equity in the property you may find yourself in a significant shortfall position.
-- Too scared to say (firstname.lastname@example.org), January 11, 2003.