Advice please

maureen59

I received a letter today stating that my mortgage is rising at the end of the month from 1206.31 to 1381.00! I have 58,000 left on the mortgage with 9 years and 1 month left. This is a joint mortgage with my ex. I haven't lived there for approx 9 years but kept the house in joint names as a investment. My current partner thinks that that is an outrageous monthly payment? i dont know if I have a interest only or a repayment type. My account states the interest rate is 2.5% I can't get my head around it. Is my partner right? Any help would be appreciated.

Thanks
maureen

InsertWittyName

The figures don't add up in the slightest.

109 payments at £1,381 is just over £150k!

I would expect your monthly payment to be around £600 given the time period, outstanding amount and interest rate.

The monthly payment you've listed given the outstanding amount and time period would mean an interest rate of about 25.7%!!!

I'd speak with the mortgage provider as soon as possible and verify the outstanding amount, time period and interest rate.

Did the letter state why the payment was increasing?

maureen59

All it said was I am writing to remind you that your current mortgage interest rate ends on 1st Aug 12, when your new rate is due to switch to the rate of 2.5%. Going on this rate will give you a new monthly payment of £1381.77 from £1204.98! So reading that I am paying less than 2.5% now! My mortgage as of this morning is £59,375.47. With the interest showing on my internet banking as being approx £250.00 a month. Hope someone can figure that out. Got a meeting with the halifax on tues but want to get my head around this so I know what to say.

Thanks

Simon_gloster

Who is the lender and is it let out?
If it is let out and your partner thinks its outrageous this new payment, remortgage properly to a buy to let at 5% and see their response then.

Any changes to the term lately?

michelle2008

Insert witty name is spot on - these figures are completely out of whack.

You could not possible only have 58,000 left at the rate you have quoted.

Either you have the term wrong - paid off in four years - or the outstanding debt is considerably higher.

Could your ex have taken addional debt on without your knowledge.?

Contact the mortgage company and ask for a statement in writing. They should also tell you the balance and term over the phone

kingstreet

Halifax? 2.5%?

Can you tell us more about the type of product you currently have and the circumstances surrounding how and when you took out this mortgage?

maureen59

The mortgage remaining term is correct along with what is owing. I have just this minute checked my bank account and all the details are on there. My ex has not added to the mortgage at all as I get statements.

We took the mortgage out in 1996.

I can't recall the initial figure but we added to the mortage at one point for a new roof.

We did initially have an endowment policy mortgage but changed when all the hype surrounding these endowments kicked off but I think that was about 1999 ish.

Thanks
Maureen

michelle2008

If the mortgage term, amount and rate are all correct then you need to speak to your lender as your monthly payments appear to be too high.

paulmapp8306

Its NOT right.

9 years 1 month remaining on £60k is around £550/month (no interest), so if your currently paying £1200, then your interest is already at £650/month - not the £250 your bank states.

£60k over 9 years (so a rough rate) given a 2.5% rate should be around £620/month. IF it is indeed £1380, then thats a rate of around 25% as stated.

Hell, even your current £1200/month is a rate of 20%. EITHER the outstanding ballabnce is wrong, the timeframe is wrong, or the repayments are wrong. You need to speak to the mortgage provider and gert accurate details before moving on with this.

maureen59

Thanks Guys
Got an appointment tomorrow afternoon. Will see what they have to say. thanks for all the advice.

Maureen

michelle2008

Keep us posted!!