Not such an intelligent approach to arrears
Taking the ‘flexible’ out of flexible mortgages
I took out a mortgage with Intelligent Finance but by early 2008, due to work problems, I’d fallen nearly £8,000 behind with the £2,000-a-month payments. IF took me to court to get repossession but the judge threw out its case, ordering me to increase my payments by £100 a month to clear the arrears. But because I am self-employed with lumpy payments, I paid back nearly half the arrears with three lump sums. Now IF is threatening repossession again, even though I am clearing the backlog faster than originally scheduled. Please help. DS, London
Intelligent Finance, now part of Lloyds Banking Group, used to stress the benefits of flexible mortgages. But even though you are ahead of the court order, it has been rigid in treating overpayments as repayments of the original capital, so the arrears have stayed virtually unchanged.
It has failed to address this in its letters, despite your requests – while you have not been the best of customers, you have made a genuine effort.
A repossession is not in IF’s, or your, interest. IF told Capital Letters it is “doing all we can to ensure this customer stays in the home”. This is the only intelligent solution.
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