Repossession threat to couple who never missed a payment on their mortgage

Published 22nd Dec 2008

A couple who are customers of Nat West have been threatened with repossession of their home even though they have never missed a payment on their mortgage.

Peter and Marian Addyman say NatWest gave them a week to repay the £226,000 loan or face losing their home, and the deadline has expired.

The ultimatum - for which they say they have been given no explanation - comes despite the bank's nationalised parent company, Royal Bank of Scotland, pledging not to carry out any repossessions for six months.
Marian & Peter Addyman can't understand why mortgage provider NatWest has withdrawn their mortgage, as they say they've never missed a payment

Marian & Peter Addyman can't understand why mortgage provider NatWest has withdrawn their mortgage, as they say they've never missed a payment

Consumer groups are demanding NatWest explain its actions, warning that otherwise its pledge to treat customers fairly in exchange for agreeing to a £20billion Government bailout will be undermined.

Mr Addyman, a 32-year-old pharmacist, and his wife, who works for a mental health unit, have three sons. They bought their newly-built five-bedroom home in St Leonards-on-Sea, East Sussex, for £250,000 in 2004.

About two years ago they consolidated their debts by taking out a second mortgage for £100,000 with a finance company, but insist they were entirely open with NatWest about this.

After their initial mortgage deal with NatWest expired at the start of this year they took up the offer of a new interest-only loan with a £1,000 arrangement fee.

With an interest tracker rate of just 0.04 per cent above base rate, the arrangement became increasingly attractive as rates fell. But although the Addymans insist they have never missed a repayment, NatWest wrote to them in September to say that after 'reviewing' their arrangement it was withdrawing the mortgage.

They had 30 days in which to secure a new loan or it would begin recovery action and inform credit rating agencies of the debt.

The letter concluded: 'We assure you that we have only reached this decision after careful consideration. However our decision is final and we are not prepared to enter into any discussion in relation to it.'

On December 10 the bank's solicitors wrote to them saying they had seven days to pay off the outstanding amount of £225,940.49 or face repossession proceedings.

'We've racked our brains to understand why they could have acted in this way,' said Mrs Addyman, 39. 'Is it because we got such a good deal? We just don't know.

'I could understand it if we were six months in arrears, but if it can happen to us it can happen to anyone.'

Their MP, Michael Foster, has twice written to the bank asking for an explanation but had no response. Now the consumer group Which? is backing their case, describing the bank's silence as inexplicable.

It said that while NatWest might have a valid reason for withdrawing the couple's mortgage, the key principle was that they had a right to be told what it was so they could try to address it.

A mortgage specialist at Which? said: 'Lenders have the right to withdraw credit at any time by citing exceptional circumstances, but you would expect them to give a reason for doing so.

'One reason could be that the lender is in severe financial difficulties, but RBS was bailed out by the Government so that doesn't apply. Unless NatWest gives them a reason for its actions they simply aren't able to defend themselves.'

Royal Bank of Scotland said the decision to end its relationship with a customer was made only in 'exceptional circumstances' and insisted these had no bearing on its policy towards mortgage holders who had fallen into arrears

Source: ' Daily Mail '

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