Mortgage Problem

[Reilly]

What power does the Bank of Cyprus have over a divorced couple who live in the UK, in separate homes, but who at the peak of the property boom bought an apartment in Cyprus and have been struggling with the mortgage repayments ever since for the mortgage secured on the property. They have been able to maintain Interest Only payments (albeit with difficulty) but there is no way they can manage Capital & Interest repayments. The funds are just not there. The Bank of Cyprus are demanding they convert to Repayment. There is significant negative equity in the property and little or no interest has been shown in the property despite it being on the market for several months.

They don't want the property, it was a significant catalyst for the breakdown of their marriage, it is putting them under real financial hardship, one of the two properties owned by the couple in the UK (their homes!) is jointly owned with an unconnected party to the mortgage in any event. Both parties have suffered physiologically from the stress of the pressure from the bank but one party has suffered severe depression as a consequence and there is real concern for their on-going wellbeing.

Any comments of experiences in a similar position would be appreciated.

[Nigel Howarth]

Hello Reilly and welcome to the forum.

Unfortunately a number of marriages and partnerships have broken down in similar situations. I expect from the bank's perspective the couple are obliged to conform with the terms of their loan agreement or face the consequences.

There is a Mediation Procedure for restructuring of credit facilities by the Financial Ombudsman; unfortunately the information is only in Greek. Their telephone number is +357 22848900 and their email address [email protected] - general enquiries [email protected]. I suggest they call/email to see if they can help.

Regards,

[Reilly]

Hello Reilly and welcome to the forum.

Unfortunately a number of marriages and partnerships have broken down in similar situations. I expect from the bank's perspective the couple are obliged to conform with the terms of their loan agreement or face the consequences.

There is a Mediation Procedure for restructuring of credit facilities by the Financial Ombudsman; unfortunately the information is only in Greek. Their telephone number is +357 22848900 and their email address [email protected] - general enquiries [email protected]. I suggest they call/email to see if they can help.

Regards,

Thank you Nigel. I shall try the Ombudsman and hope they will be sympathetic to British Nationals who speak no Greek!