After struggling to pay her mortgage, Geri discovered she still owed money and was frustrated that she couldn't make a fresh start.
What happened
Geri struggled to pay her mortgage and ended up handing her keys to her mortgage lender and moving back in with her parents.
As she still owned a small amount of the property, she expected to be able to make a fresh start after a few months. But after the lender sold the property, Geri was told she still owed it money.
This was partly due to extra charges the lender had made relating to the sale arrangements.
What we said
We explained to Geri that costs would have been incurred whether she or the lender had sold the property. Additionally, interest continued to be added to the mortgage until the house was sold.
We didn’t think it was unfair for the lender to pass those costs on to Geri. The mortgage agreement allowed the lender to do this, and the costs weren't covered by the money from the sale of the house.
We didn’t uphold Geri’s complaint. However, we suggested the lender work with Geri to agree a fair repayment plan, including helping her get support from a debt charity if necessary.