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cityguru
cityguru, Solicitor
Category: Property Law
Satisfied Customers: 13326
Experience:  solicitor
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The calculation of my interest is outrageous: Initial money

Customer Question

The calculation of my interest is outrageous:
Initial money taken: 335,000 pounds
OUTSTANDING INTEREST INTEREST RATE
Jan. 31 2004 334,246.36 3,473.66
Jan. 31.2005 321,397.41 17,095.39 4.2%
Jan. 31 2006 316,946.37 19,464.32
Jan. 31, 2007 364,615.72 19,531.24
Jan. 31, 2008 366,100.82 18,735.69
Jan. 31, 2009 373,073.22 21,494.54
Jan. 31,2010 381,892.63 14,260.70 3.5%
Jan. 31, 2011 385,799.72 13,947.98 3.5%
Jan. 31, 2012 378,431.86 13,744.98 3.5
Jan. 31, 2013 380,001.84 15,211.07
Oct. 24, 2013 384,982.91 11,494.67
1. Why should I be charged twice interest rate in a year in 2013? January and October.
2. I was told that I pay 44 pounds in a day = 1320
3. I am paying 1,645.00 per month (where does the balance go?)
4. I have less than one year on the mortgage they are refusing to extend my morgage period.
5. I am 58 years old now? Are they not obliged to increase my term by at least another 11 years as I am fit to work till 70 years of age?
6. Where is the excess of 45,000 pounds in their hands. why is this not used to reduce my liability. Are they not surpose to use it to reduce my liability?
7. Please, I need my account to be toroughly investigated and corrected as I feel that I am being cheated and unfairly treated .
Submitted: 3 years ago.
Category: Property Law
Expert:  cityguru replied 3 years ago.
You should ask them to provide a detailed breakdown of the debits and credits to the account. It looks s if to begin with you overpaid and the balance due reduced but then the balance suddenly increased in 2004. Did you take further advance ?

you need to get a full statement because if you have paid 1645 per month consistently and never defaulted on any payment then the figures do not make sense. If they do not provide figures then you can make a formal complaint and refer it to the ombudsman.

So far as extending the mortgage is concerned no they are under no obligation to extend. If you took out an interest only mortgage then you are obliged to provide a repayment mechanism either through endowment or pension saving or otherwise. If the loan is due next year then they can foreclose unless you can refinance or repay. That is the basis on which interest only mortgages work.