Couple given no explanation for repossession

23/12/2008

A UK mortgage lender is facing criticism today, after unexpectedly starting proceedings to repossess a property from one of its customers.

What's more, the couple affected claim to have never missed a payment on their home loan before.

Marian and Peter Addyman previously took out a £226,000 mortgage with NatWest - and slid into negative equity as house prices fell in the current downturn.

This means that the value of their mortgage became larger than the value of their home.

RBS, owners of NatWest, are apparently unwilling to tell them why their loan is being called in.

In a letter ordering them to find a new mortgage from another lender, the bank said: "Our decision is final and we are not prepared to enter into any discussion in relation to it."

After failing to secure a new loan, the Addymans now face repossession.

Commenting on the case, Which? chief executive, Peter Vicary-Smith, said: "How can a family that has seemingly done nothing wrong face losing their home without any explanation from the bank?

"If there is a good reason for NatWest acting in this way, surely the customer has a right to know what the problem is before they're threatened with losing their home."

Tags; Debt Management and Banking, Young Family Finances,

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