My mortgage challenge - can you help ?

muzzer1972_2

Hi i am in a bit of a dilema, i remortgaged in June 2007, orginal amount borrowed £107,199.00 fixed rate 7.59 %.

Two years ago i had an outright repossesion. I am still in the property. I am now currently unable to pay the full amount requested by the mortage co and i am paying half of my mortage payments. and i am still paying 7.59% intrest rate. I have spoke to my lender and they are confirming because this is what i have signed on my mortgage agreement, and i was asked to confirm the details before signing i agreed to the terms. I am in despair and not sure what to do.

My account balance is 112,841.68.
Arrears balance is 6,322.97

Type of account repayment.

Orginal term 30 years
remaining 318 ( 26 years and 6 months )

Monthly repayments £759.47
Total cost to pay the loan 118,087,.48 which includes a replayment charge of £4.436.76.

My Challenge to you - i am no accountant and i have done my figures..... and i see red.

If there is anyone out there can offer me any advice i would appreciate it. Many thanks for your help and time reading this.

dimbo61

Sorry but this is a very confusing post!
1 outright repossesion! So you dont live in the property anymore?
2 How long is the fix for ? 26years
3 If you are only paying half the mortgage then your arrers are building up and you may well lose the property.
4 We no nothing about you ? Kids, income, other half, LTV and deposit put down etc
5 Did you have a poor credit history before you bought this property ? hence the high interest rate
6 In the current climate would you even get a mortgage of £112,000 with your income

Time I think to make an appointment at the CAB and get help sorting the mortgage debt

muzzer1972_2

Hi thanks for the reply, answers to your questions.

1 outright repossesion! So you dont live in the property anymore?
A: Yes i live in the property, still
2 How long is the fix for ? 26years
A: Fixed for 2 years, but becacause i have outright possesion on my account, mortgage company do not have to put me on a variable as far as mortgage co is concerned i lost my option to go variable when they got the repossesion order.
3 If you are only paying half the mortgage then your arrers are building up and you may well lose the property.
A: when i attended court for the repossesion i was 1,500 in arrears with my mortgage. The mortage co say they dont want reposses the house and would preffer i if could pay the debt off.
4 We no nothing about you ? Kids, income, other half, LTV and deposit put down etc
A: single parent; Kids grown up, no other half, no deposit etc just a straight swap on the remortgage.
5 Did you have a poor credit history before you bought this property ? hence the high interest rate.
A: Yes i did have a poor credit history;
6 In the current climate would you even get a mortgage of £112,000 with your income:
A : My income is a single income of 27.500 a year :-(

CAB advised i cant not get legal aid and are unable to help me; and i needed to seek legal advice.

My issue is the repayments - the loan outstanding and the amount payback... i am convinced there is a typo somewhere along the lines.

Regards Linda.

getmore4less

How much is the place worth?

Why did you remortgage?

what are you actualy paying each month?
You need over £950pm to cover the interest as a minimum.


If they won't reposess then tell them they need to cut the rates so you can afford it.

As far as I can tell you are getting in deeper so unless they cut charges or you find more money it is just going down the drain and you might need to consider selling or just stop paying to force them to do something.

betmunch

muzzer1972 wrote: »

Fixed for 2 years, but becacause i have outright possesion on my account, mortgage company do not have to put me on a variable as far as mortgage co is concerned i lost my option to go variable when they got the repossesion order.

This bit doesnt sound right to me.

I'd check your paperwork to see where in the T&C's the mortgage company can refuse you to go on the the follow on rate due to having a repossession order.

They wouldnt have refused you a follow on rate if it had been higher than the fix would they?

Can anyone with a bit more knowledge explain if this is likely to be true?

muzzer1972_2

When i remortgaged i went from 72k intrest only £107,199.00 fixed rate 7.59 %. the house is currently on the market for £118,00.
My actualy payment wanted from the mortgage co is currently £759pcm this apprently is because of the intrest rate ?? i am actually paying £400pcm currently and have been doing for the last 4 months this has been agreed by the mortgage co because i am in 400pcm in deficit after completeing my budget breakdown with them ? obviously geting deeper in debt as previously suggested and at my witts ends.
What i can not get my head around is the amount of the loan to pay back is £118,00 so why am i paying £759 for 360 months which almost double the cost ? Scared and confused.

getmore4less

When i remortgaged i went from 72k intrest only £107,199.00 fixed rate 7.59


Why you must have know at the time you could not afford it

where did the £35k go?

muzzer1972_2

Understand your thoughts; but i bought by ex partner out and at the time i could afford it, times change nothing last's forever !