Mortgage with C&G - seem to have forgotten about fees!

mel19632

We took out a mortgage with C&G last May. There were fees of 2.5% on a mortgage of £127,075 (ouch, i know) which we opted to add to the mortgage.

On all the statements, I have just realised that the balance does not seem to include the fees at all, and the mortgage payment equals 5.14% times the balance, so we are not even paying interest on the fees.

Anyone else had experience of this? Surely C&G can't have forgotten about the fees??

dunstonh

C&G add the fees to a sub-account. eg. mortgage account number-99

Have you checked to see if you have the statement for the whole mortgage or just one of the sub accounts?

mel19632

Hmm will have to dig out the statements to check that. I'm pretty sure there wasn't another account on the statement though.

Do they not charge interest on the fees amount though?

GOLFER

Yes they do

You will probably find as someonne said earlier that you have a sub account.

I just chnged to C+g in Oct and i have 2 payments making up up my DD, one for mortgage and one for a sub account ie the fees we added to mortgage.

Give them a call and they will explain all to you.

koexelek

GOLFER wrote: »

Give them a call and they will explain all to you.

I would not do that.

I am 99.99% sure it would have been added to a sub account( as previously stated), but there is a 0.01% chance they could have cocked up.
If this is the case, you don't want to alert them:cool:

2latenow

I've had 3 different fixes over the past years with C&G and they *always* put the fees in Sub Account #99. On *some* of the illustation paperwork sub#99 wasn't always listed (ie it might not have been on page X with the main loan but was on page Y).

On one occasion (in 2007) C&G 'forgot' to include interest payments for Sub#99 in to the calculation of my direct debit - meaning the balance on that sub would just keep building up and up (I noticed it after 2 months and got it fixed). Maybe this is what they haev done in your case?

As someone says, you might (just might) be really really really lucky because I believe there is some manual entry (therefore possible human error).

GOLFER

I would not do that.

I am 99.99% sure it would have been added to a sub account( as previously stated), but there is a 0.01% chance they could have cocked up.
If this is the case, you don't want to alert them:cool:

so what happens as 2latenow says and in a couple of years they bring this up and nothing has been paid to it. All that has been added is interest. You know you have the fees to pay so sort it out now.

All you need to do is phone up and get a balance of your mortgage account as if you were settling it then you would know if it was there or not.

koexelek

GOLFER wrote: »

All you need to do is phone up and get a balance of your mortgage account as if you were settling it then you would know if it was there or not.

That's exactly the way to do it

mel19632

Thanks for the advice everyone.

I will contact them to find out the balance and hopefully there will not be masses of interest payments to pay on the sub account.

I only get statements once a year - is it possible to get them more frequently?

GOLFER

do keep us posted Mel as I would be interested to see if they have infact lost your arrangement fees

thanks

mel19632

Quick update for you - have rung C&G this morning for balance and it is for £127k. This amount is JUST the mortgage, so they can't have included fees.

I confirmed with the guy that that was all that was there - didn't mention fees.

My only thought as to why this has happened is that when we got the mortgage it was supposed to be for 2 years (ending in May 2009). Due to an admin error when we did get the mortgage it finished in Feb 09. This was not told to us until the day of exchange! I called to see if it could be adjusted but was told it would take a week - I obviously couldn't call everyone on day of exchange (& completion) as it would screw everyone, so we just swallowed the three months difference in the mortgage.

Perhaps they didn't charge fees because they gave us the wrong mortgage?