Help & Advise on Mortgage Debt

Hornet1964

We contacted our mortgage company back in December 08 to say we were going be struggling with paying due to redundancies. They were unwilling to help. We stayed in contact with them all the time, but eventually were told by a financial adviser to move out and find a rented property. We put the house up for sale and had an offer within a month being May 09. The mortgage company took its time in processing things and eventually in October 09, they refused the buyer the sale due to us not agreeing to sign a repayment form, which had unreasonable figures on. We then had no choice but to hand the keys over to the mortgage company, in November 09. They put the house up for sale in January 10 £15k higher than it was originally on for. The original buyer then put in the same offer and they accepted it. The house sale finally completed in April 10.

We have now heard from their solicitors stating the end balance of December 09 of £191k, 10K more than in April 09, plus they have added interest of £3750, estate agent fees, solictors fee, locksmiths fees, HIPS (which we had already had done), etc etc.... making a total owing of £37k!!!!

Please help me to understand how the mortgage can rise, and if all of this is right?

getmore4less

Hornet1964 wrote: »

Please help me to understand how the mortgage can rise, and if all of this is right?

When you stop paying, interest continues to get added and compounds.

What was the problem when you had a buyer, what repayment terms were not acceptable?

Hornet1964

On the statement they have sent there is also £3750 interest added on top of the now £191, so does this mean it is added twice?

The reason we did not want to sign was they kept avoiding giving us the full breakdown of how the figure was made up. They wanted to apply interest of a daily amount of around £35.00 but a repayment of £50.00 a month, meaning we would owe them more at the end of a month, plus they wanted to review it every 3-6 months, and would not give us an end term date. So they would not let the buyer go ahead with the sale before we signed. Instead of letting them have the house then chase us for the money which is what they are doing now 1 year later.

getmore4less

To stand any chance of understanding what might have happened will need full details and proper time line.

Mortgage, payments, rates, terms,offers, shortfalls etc.