Consolidating mortgage arrears
What is refinancing and how can mortgage in arrears occur?
Pepper Money considers each application based on its own merits.The Bank of Scotland was found to have consolidated or capitalised arrears on mortgage accounts without the consent of the borrowers, or even assessing whether the borrowers could afford the higher payments– this is known as ‘unilateral consolidation’.Despite this consolidation, the bank was also using these same arrears as a basis for an application to the court for a Possession Order, to repossess family homes.I couldn't have done it without their help and recommend them to anyone needing to consolidate debts.Bank of Scotland v Rea and Others  NI Master11 The PILS Project provided financial support to one of its members, Housing Rights, in litigation that exposed a practice of mortgage lenders that has led to very significant consequences for a large number of families across the UK.My credit cards debt was getting out of control, and very hard to manage.
Mortgage Associates Ontario assessed my situation, and arranged an equity based second mortgage and I consolidated my bills with two days.
In order to settle a case, or to suspend an order for possession, the bank wanted payments above and beyond the monthly instalment towards the arrears – bearing in mind the monthly instalment had already been recalculated, to repay those arrears over the rest of the mortgage.
The Master described the practices of the bank as ‘double billing’ and ‘unconscionable’ (paragraph 57 of the judgment).
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