A bank has apologised after it initially refused to give a victim made homeless by last week’s riots a mortgage payment holiday. It has now agreed to suspend payments.
The victim, who lost her home above the burning furniture store in Tottenham, has a mortgage with Woolwich, part of Barclays.
She said that despite losing her home and all her belongings in the arson attack on the River Heights block, she was at first told she would have to keep up with her £661 monthly payments for her flat.
The woman, in her 20s, said: “I asked Woolwich for a payment holiday.
“I wasn’t trying to get out of paying my mortgage. I just wanted a month or two so I could get myself sorted because the flat has been destroyed and I’ve been left homeless.
“They just refused to help because they didn’t feel the fact that the flat is not even there was a valid reason.
“I think it is disgusting. The whole country can see what we’ve been through. You would expect some compassion at a time like this. We’ve all been left homeless and everything we’ve owned has gone.
“You would expect the banking industry, who the people of this country have bailed out time and time again, would show us a little compassion.”
The 26 flats are in shared ownership with Metropolitan Housing Partnership, whose chief executive Bill Payne said: “The country came to the assistance of the banks when the industry was collapsing. It does not leave a pleasant taste in the mouth that they won’t come to our help now.
“I think their behaviour is hard-nosed, insensitive and immoral.”
Under the River Heights scheme, the home owner has a mortgage for a percentage of the property, and pays rent to the housing association for the rest of it. After the arson, the housing association has immediately waived its rents and is also paying hotel bills for the families made homeless.
Payne said of the residents: “They are calling the banks to say, ‘My home has been burned to the ground’.
“And the bank just says, ‘You’ve got to keep paying your mortgage. It is up to you to pay’.”
A spokeswoman for Barclays said: “Unfortunately the customer was not dealt with the right way and we apologise for that. We have made contact with her and made arrangements to suspend her mortgage payments for three months.
“We understand the devastating circumstances facing many of our customers as a result of the riots. Barclays is doing everything it can to help these customers during this difficult time.
“We are here to help. We will listen to our customers’ individual circumstances and needs and provide appropriate support to help them get back on their feet. This will include suspending mortgage payments where homes are uninhabitable or where customers have lost their livelihood.
“We have provided a point of contact for mortgage customers affected by the riots, and we will maintain contact with these customers over the coming months through to resolution.”
The contact number for mortgage customers is 0800 389 5270.
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Comments
First let me say that I am sorry for her predicament - I don't want you all thinking I am heartless.
I used to work in an office less than 300 yards from there and lived up the road when the Broadwater Farm riots happened.
But I have to be missing something here.
The buiding freehold is owned by an RSL or Housing Association if you prefer.
She is on a part buy/ part rent scheme.
It therefore is insured.
No ifs, no buts.
Unless the insurance company refuse to rebuild the entire building - which is not going to happen - they will cover mortgage payments and rehousing costs for the time being.
This is not just a rubbish story, but simple common sense means that it shouldn't even be a story at all.
Silly season I suppose
@unknown
You do have a point, not that I entirely agree with you
However, just what is the normal insurance situation in a case like this? I would like to know.
You're missing the point, I think.
There would be a need to pay back the loan, but she is not trying to avoid it. She ONLY wanted a (very) short break to get her feet back on the ground - Up to 2 months in fact!
"“I wasn’t trying to get out of paying my mortgage. I just wanted a month or two so I could get myself sorted because the flat has been destroyed and I’ve been left homeless."
It is a good thing that these businesses and the Govt. are showing compassion to the affected people of this country.
Going back to my car anology then, what if an uninsured driver hit you writing off your car and they drove away? So its not your fault at all...so hey, no need to pay back your £10k loan????
Unnown - I wonder if that would be your thought if YOU were in her shoes.
If you wrote off your car, that would be your own fault. To have someone set fire to your home in a completely unprovoked attack demands compassion from the bank.
It's a bit over-hyped this story. An admin error somewhere in the early stages by someone on the front line, which has been rightfully corrected and is not the view of the bank as a whole.
Whilst the events we faced last week were absolutley disgusting and it is a tradegy this women has lost her home. However she took out a loan and the loan needs to be repaid...If she had written off her car should she have a payment holiday from a car loan?...NO! This is why people should have insurnace.
I feel really sorry for any one who lost their home or any belongings but it wasn't the banks going round rioting and burning things!
So they are going to re-build a block of flats in 3 months eh? What a bunch of cretins these banks are. Bet if the person who has made this momentous decision to suspend payments for 3 months faced with the same loss of their home would want the suspend the payments until the property was re-built and habitable.
Typical banker (did I spell that right or should there be a W at the start of the B word?) but he may be a friend of Grant Shapps who maybe went to the same school for idiots.
SHAMEFULL.