I find myself in a situation wher i want to move to a smaller property to reduce my mortgage from 46500 to 35000. the abbey national (current lender) will not agree to a new mortgage as we have had three missed (late) payments in the last 12 months and are overdrawn with them 1500pounds. the current mortgage is fixed for 5 years (three years left of that) at6.9%. we have asked for a consolidation loan of 7500 to pay off outstanding loans and debts and a mortgage of 35000 pounds. the Abbey National (local branch) have said there is nothing they can do to help. if we could get a mortgage with another lender (which appears to be impossible due to having been late wihh payments in last 12 months) the Abbey National will want 1800 pound from us for leaving the fixed rate deal. any suggestions or does any one know the head office and managing director of the abbey?

-- jon daly (jon@daly2035.freeserve.co.uk), June 14, 1999

Answers

Its relatively easy to get another loan with three missed payments: this is the market the specialist lenders serve. But. getting the loan will cost you money and youre better off putting that money into paying off your current debts, not acquiring bigger debts. Try to sell the house. If the lender resists, see a lawyer or the Citizens Advice Bureau  you have the right to sell even if you are in arrears and have a plan to pay off the excess debt but some lenders will swear till they are blue in the face that you dont.

Once youve sold, then look at buying the smaller place. Rent if you have to, but clear the debt. Youll still find it easy to get another mortgage. See this sites material on this in the Blacklisted? and Homebuying sections.

Abbey Head Office: Abbey House Baker Street London NW1 6XL

Managing Director is Andrew Pople

Good luck,

Lee

-- Lee (repossession@bigfoot.com), June 14, 1999.

Another option for you would be to seek free advice about dealing with your mortgage arrears and other debts. Citizens Advice Bureaux and some other independent advice centres give free, impartial and confidential advice about dealing with your debts. They can advise you on: whether you are liable to pay your debts; whether you can increase your income; help you draw up a financial statement (a list of your income and expenditure); show you which debts are the most important; negotiate repayments to your creditors or help and support you negotiate repayments yourself; help you deal with any emergencies.

You can find your local CAB in your local phone directory or you can access the National Association of CABx website (www.nacab.org.uk).

-- Sue Edwards (sue.edwards@nacab.org.uk), June 21, 1999.