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    • Markp671
    • By Markp671 18th Apr 17, 5:52 PM
    • 3Posts
    • 1Thanks
    Markp671
    Help "old mortgage"
    • #1
    • 18th Apr 17, 5:52 PM
    Help "old mortgage" 18th Apr 17 at 5:52 PM
    Hello, really need advice!
    I took out a mortgage in 2007 at £89,000 with Northern Rock which changed names a few times over the years. I have recently found out you should always remortgage which I never knew before! We had sold the house in 2016 with a redemption balance of £87,000 I have requested over the 9 years for an explanation of the interest charges as the rate never changed but the interest charges did (up/down) all times I have been adviced they are just there for advice. Now we have sold the house and changed our mortgage company I am now wanting to understand and to make sure I wasn't robbed. After paying an average of £70k over the years with a £2k off the balance. Can any one advise of understanding them or what I should do to challenge this?
    Any advice really appreciated.
Page 1
    • ACG
    • By ACG 18th Apr 17, 5:59 PM
    • 14,524 Posts
    • 7,243 Thanks
    ACG
    • #2
    • 18th Apr 17, 5:59 PM
    • #2
    • 18th Apr 17, 5:59 PM
    Interest does change monthly.
    Assuming interest is charged daily then it would vary depending on how many days are in the month.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • xyz123
    • By xyz123 18th Apr 17, 6:01 PM
    • 1,419 Posts
    • 346 Thanks
    xyz123
    • #3
    • 18th Apr 17, 6:01 PM
    • #3
    • 18th Apr 17, 6:01 PM
    So u r saying that between 2007 and 2016,you paid £70,000 in mortgage but mortgage balance onky reduced by 2k? Did you do any additional borrowing between these years?
    • Lilla D
    • By Lilla D 19th Apr 17, 9:34 AM
    • 46 Posts
    • 18 Thanks
    Lilla D
    • #4
    • 19th Apr 17, 9:34 AM
    • #4
    • 19th Apr 17, 9:34 AM
    Did you have a Together mortgage, i.e. interest only for 90% of the purchase price and extra borrowing for the remaining 10% + costs? If so, then most of your payments would have been on interest only basis, i.e. they didn't reduce your balance, while the extra borrowing would have been on repayment basis, hence the £2k reduction.

    Not sure why they charged you a different amount every month apart from the change from your initial deal to their standard variable rate after 2 years and when that rate was reduced after 5 years by 0.25% as a loyalty bonus.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Markp671
    • By Markp671 19th Apr 17, 6:19 PM
    • 3 Posts
    • 1 Thanks
    Markp671
    • #5
    • 19th Apr 17, 6:19 PM
    • #5
    • 19th Apr 17, 6:19 PM
    Hello, thank you for you help!
    We did no additional borrowing but when we took out the mortgage it was 90% mortgage and a 10% loan at the start of the mortgage. Both on repayment.

    Thanks
    • TrickyDicky101
    • By TrickyDicky101 19th Apr 17, 6:43 PM
    • 2,535 Posts
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    TrickyDicky101
    • #6
    • 19th Apr 17, 6:43 PM
    • #6
    • 19th Apr 17, 6:43 PM
    Did you fail to make any scheduled payments and thus incur fees/charges?
    • Thrugelmir
    • By Thrugelmir 19th Apr 17, 6:58 PM
    • 52,946 Posts
    • 45,288 Thanks
    Thrugelmir
    • #7
    • 19th Apr 17, 6:58 PM
    • #7
    • 19th Apr 17, 6:58 PM
    I have requested over the 9 years for an explanation of the interest charges as the rate never changed but the interest charges did (up/down) all times
    Originally posted by Markp671
    Every year you would been sent an annual statement. This would have detailed all the transactions on your mortgage account. Did you read them, retain them or bin them?
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
    • Markp671
    • By Markp671 19th Apr 17, 7:21 PM
    • 3 Posts
    • 1 Thanks
    Markp671
    • #8
    • 19th Apr 17, 7:21 PM
    • #8
    • 19th Apr 17, 7:21 PM
    Hello, we did when I lost my job in 2009 for around 6mths but still made a contribution were they agreed to lower the interest rate for a short period of time. It was kept on a repayment mortgage and it was brought upto date by the start of 2010
    • dunstonh
    • By dunstonh 19th Apr 17, 7:28 PM
    • 87,234 Posts
    • 52,391 Thanks
    dunstonh
    • #9
    • 19th Apr 17, 7:28 PM
    • #9
    • 19th Apr 17, 7:28 PM
    have recently found out you should always remortgage which I never knew before!
    I have never remortgaged. So, its not a rule that you should.

    I have requested over the 9 years for an explanation of the interest charges as the rate never changed but the interest charges did (up/down) all times I have been adviced they are just there for advice.
    It is highly unlikely your rate didnt change once in that 9 years unless you had a 10 year fixed rate. However, it would change as interest is normally handled daily and there are different numbers of days in the month.

    Can any one advise of understanding them or what I should do to challenge this?
    Challenge what?

    they agreed to lower the interest rate for a short period of time.
    But you said in #1 that there were no interest rate changes.

    Most likely situation here is that the bulk of the mortgage was on interest only basis. The loan part was more expensive than the mortgage and on repayment basis. Easiest thing to do here is look at your statements. That is, after all, what they are for.
    I am an Independent Financial Adviser (IFA). Comments are for discussion purposes only. They are not financial advice. Different people have different needs and what is right for one person may not be for another. If you feel an area discussed may be relevant to you, then please seek advice from a Financial Adviser local to you.
    • Lilla D
    • By Lilla D 19th Apr 17, 9:22 PM
    • 46 Posts
    • 18 Thanks
    Lilla D
    Hello, thank you for you help!
    We did no additional borrowing but when we took out the mortgage it was 90% mortgage and a 10% loan at the start of the mortgage. Both on repayment.

    Thanks
    Originally posted by Markp671
    Based on your reply, it was indeed a Together mortgage and therefore the 90% would have been on interest only basis, which is also supported by the fact that your balance only went down by £2k in 9 years. The annual statements will confirm it, if you still have them.

    However, in response to the last post, both parts would have been on the same interest rate at all times. It was one of the features of this type of mortgage.

    In order to check whether your payments were correct, indeed you'll just have to check the statements. NRAM's leaflets they sent out to customers at least annually also give details about how to make an enquiry or complaint, if you think that they overcharged you.

    I'm saying all this from personal experience and not because I happen to be a broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 19th Apr 17, 9:30 PM
    • 52,946 Posts
    • 45,288 Thanks
    Thrugelmir
    Hello, we did when I lost my job in 2009 for around 6mths but still made a contribution were they agreed to lower the interest rate for a short period of time. It was kept on a repayment mortgage and it was brought upto date by the start of 2010
    Originally posted by Markp671
    Lower the interest rate or accept lower monthly repayments. There is a fundamental difference as your debt would have grown not reduced. As the interest added every month would have compounded the issue.
    “ “Bull markets are born on pessimism, grow on skepticism, mature on optimism, and die on euphoria. The time of maximum pessimism is the best time to buy, and the time of maximum optimism is the best time to sell.” Sir John Marks Templeton
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