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Mortgage advice
trix73
Posts: 2 Newbie
Hi there,
I have remortgaged my house in the Greater London area in 2007 and have had to settle for a part interest/part repayment mortgage to keep monthly repayments affordable. My mortgage is still at a fixed rate of 5.99% APR until end 2012, which has not been very beneficial as the BOE base rate has been very low. I have another 30 years to pay off £194,000!
I am looking to switch to repayment, but before I go ahead with it, I have 2 queries:
1. whether it is better (in order to minimise the HUGE interests already paid to the mortgage company) to keep the mortgage part interest/part repayment in order to free up money and build a lump sum to pay into the mortgage at regular intervals (if so, is there a preferred frequency at which to pay lump sums into a 30 year long mortgage?), or switch to a full repayment mortgage and pay off more of the capital every month?
2. Also, last year in 2010 I lost my job and received Mortgage Interest benefits for 12 months - the payments were made directly by the Benefits Office into the mortgage account at irregular intervals which obviously built up a lot of additional interests into my mortgage account.
I didn't realise that due to erratic payments from the Benefits Office, I now owe my mortgage company £4,000 more worth of additional interests over a period of 12 months!!
Imagine my dismay when I received my annual statement last month!
Is there anything I could claim or do to ask my mortgage company or any government organisation to write off this amount --- this shouldn't be allowed especially as the mortgage company knew I was in a tough financial situation and they were receiving Benefits money!
I do hope anyone can guide me.
I have remortgaged my house in the Greater London area in 2007 and have had to settle for a part interest/part repayment mortgage to keep monthly repayments affordable. My mortgage is still at a fixed rate of 5.99% APR until end 2012, which has not been very beneficial as the BOE base rate has been very low. I have another 30 years to pay off £194,000!
I am looking to switch to repayment, but before I go ahead with it, I have 2 queries:
1. whether it is better (in order to minimise the HUGE interests already paid to the mortgage company) to keep the mortgage part interest/part repayment in order to free up money and build a lump sum to pay into the mortgage at regular intervals (if so, is there a preferred frequency at which to pay lump sums into a 30 year long mortgage?), or switch to a full repayment mortgage and pay off more of the capital every month?
2. Also, last year in 2010 I lost my job and received Mortgage Interest benefits for 12 months - the payments were made directly by the Benefits Office into the mortgage account at irregular intervals which obviously built up a lot of additional interests into my mortgage account.
I didn't realise that due to erratic payments from the Benefits Office, I now owe my mortgage company £4,000 more worth of additional interests over a period of 12 months!!
Imagine my dismay when I received my annual statement last month!
Is there anything I could claim or do to ask my mortgage company or any government organisation to write off this amount --- this shouldn't be allowed especially as the mortgage company knew I was in a tough financial situation and they were receiving Benefits money!
I do hope anyone can guide me.
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