Bank charging more interest than taking payments ?? confused

barneybo

Hello, I need some advice as to where I should go to check this, so that I can find my legal position on my mortgage ;

Purchased my house approx 12years ago with a standard repayment mortgage, with a 10 year fixed interest. This was all fine for the first 5 years, the agreed amount came out of the account each month and the interest was as agreed. 5 years into the mortgage the bank decided to change the payments & interest to follow the market, all seemed fine as the interest was less than the fixed rate agreed, the bank took a little less out of the account each month and the interest was a little less.

However the bank has gradually over a period of time reduced our monthly payment so that recently the monthly payment is lower than the monthly interest!! At the moment I am never going to repay the mortgage .

I have been into the bank to request an appointment to discuss this issue, I was informed that they are too busy to see me, and I filled out a request for them to telephone me, I am still waiting for the call.

The Banks actions seem to me to be unethical & maybe illegal, who do I go to to check this??

opinions4u

Name the bank.

Do you have any proof that you fixed for 10 years (offer letter, key facts document etc)?

barneybo

Bank ; Isle of Man Bank

Paperwork ; I'm a bit of a hoarder, got everything from the intial approach for the mortgage, all contracts etc & bank statements

Thrugelmir

Could you supply some more information, so that we understand the situation better?

Do you ask to exit the 10 year fix?

barneybo

No, I did not ask to stop the fixed term, I have not made any agreement with the Bank on the mortgage other than the initial agreement when I took it out.

Thrugelmir

So what are the interest terms of your 10 year fix?

barneybo

25 year mortgage, 47,000 comprising off 40,000 to buy house and 7.500 for works, monthly instalments of 333.96 pcm, 10 year fixed interest 6.99% debited quarterly
26th oct 1998

intial drawdow 29/01/99 40,000 with 2 additional draws of
16/06/99 3,000 & 26/11/99 4,500

current balance 26/01/12 39,026.66
currently paying 128.87 pcm last quartely interest 30/12/11 388.15

Thrugelmir

Without more information impossible to say what's going on.

Though there's nothing to stop you making overpayments to reduce the balance owed while you sort the matter out.

barneybo

I have added the info you requested as an addition above, hope this helps.

Have previously asked at the counter about paying more, they started to talk about interest penalties for early repayments so I did not go any further, in hindsight perhaps I should have started asking questions then.

barneybo

going to the bank today to see if I can get an appointment, also I will ask them if I can pay more

barneybo

went to the bank, and was able to see the mortgage person straight away!!

Was told that my mortgage repayments were correct as was the interest charges being applied, and this was in accordance with the INTEREST ONLY mortgage I took out in 2002. Problem is I took out a standard capital repayment mortage in 1999.

Turns out that the bank installed a new computer system in 2002 and transferred everyones details from the old one, it would seem that my details have been incorrectly transferred. I have asked the bank to send me the current particulars of the mortgage they have, and they have asked if I have the original documentation for the mortgage I signed up for, if so they would like me to bring them into the bank.

I have told the bank that I am seeking legal/financial advice on this matter, so can someone tell me who I should see?