Buildings Insurance on top of Mortgage Total

buspassheaven_Company_Representative

Hi Everyone
We took out a repayment mortgage with a major mortgage company for £15000 in 1987. At the time Buildings insurance was an additional premium of £7.40 per month. In 1995, when it was made possible, we took out our own buildings insurance with one of the major insurers. No problems as yet.

Last year we decided to pay off a capital repayment of £500 bringing, in our opinion, the total due down to £14,500.

When we got our statement we were gob-smacked to find that we owed just over £15,000 still, so we wrote to the mortgage company asking what had been done to the £500 we had sent them.

Telling you in brief, we were told that, the buildings insurance premium went up from the £7.40 per month and the extra unpaid amounts up until 1995 were added to the total due, making a balance on the mortgage of over £15,600. :mad:

We were gob-smacked !! OK, apparently, these small increases did show on the annual mortgage statement and we didn't see them but NOT ONCE in those 7 years were we informed that a shortfall was ocurring and not once did we recieve a request to increase the payments.

Obviously much of this increase will be interest and we are reluctant to pay this but already have in a fashion as our capital repayment has all but paid off this extra amount.

Do we have any recourse with the company or have we just got to pay this and keep our mouths shut? We really feel that we have been robbed.

Any help that can be given would be much appreciated.