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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