Kensington Mortgages

muralig

Please find below a brief description of my problem with Kensington Mortgages Ltd.
1) Me, My wife Selvy and our 2 children live at Harwell. We run a small News Agent business from here. This is a leasehold property.
2) We have our own 3 bedroom house in New Malden Surrey, in which tenants living which is mortgaged to Birmingham Midshire.
3) 5 years ago we borrowed £11,750 from Kensington Mortgages (KMC) on a 5 year term giving our house as second charge.
4) For couple years we didn't have any problem paying the insatllments. After that we ran into financial difficulties and had a large arrears with KMC.
5) KMC took us to court last February 2011 in order to re posses the house. The judge ordered that we should clear the balance befor end May 2011. So we borrowed £10,000 from my brother and cleared the balance.
6) As soon as we did that KMC added £3900 as their legal cost to the mortgage account. We asked them why the legal cost is too high? KMC replied that they have to do a lot of legal work that is why it is too high. I disagreed with their decision and complained to the financial ombudsman.
7)The financial ombudsman made a judgement on 3 October 2012 in KMC's favour. So I started paying the balance straight away and have paid £1500 so far.
8) The Balance on mortgage account on 31 May 2011 was £3677.24. The balance as of 03 September 2012 was £5201.41. But I received a letter from KMC dated 12 October 2012 demanding a ransom of £10,127.32.
9) From that date up to now i am trying to find out why the balance jumped up from £5200 in September to £10,000 in October the KMC is not willing to give me any info.I even requested info under sec 77 to 79 of the consumer credit act they only responded by sending me a copy of the original agreement.
10) So I made a complaint to financial ombudsman on 17 October 2012. As soon as I made the complaint I received a letter fro Mathew Arnold & Baldwin Solicitors acting on behalf of KMC demanding £9,999.19 within 7 days or they will evict my tenants from the property. This letter was dated 08 November 2012. I have asked the solicitors for the breakdown of the balance but still no reply.
I don't know what to do. Are they allowed to charge interest on legal cost? I might loose my house please advise me. PLEASE HELP ME!

Dave_Ham

Firstly, I would suggest you take out the personal information about your address, this is not necessary.

Secondly, I suggest you see a solicitor. Whilst I do not believe they can make up the costs, I dare suggest they have used expensive solicitors and whilst this is not necessarily my specialist subject (Holly will probably confirm when finished with Potato Plod) I do believe they can charge interest.

Is there enough equity in this property to raise finance through BM to pay off on better terms.

I assume things are not generally good, as I would think you have one of the low rate BM trackers, so if you have been struggling so far if and when the interest rates increase you will be up against a higher mortgage and I cannot believe that rental income will be increasing in line...

All the best

Thrugelmir

Why did you not sell the property in New Malden to clear your debt originally?

Fruit_and_Nut_Case

Hi muralig. Welcome to MSE :wave:

Dave_Ham wrote: »

...take out the personal information...

Agreed. Anyone Googling your address will find this post. Possibly not your intention.

Dave_Ham wrote: »

...I suggest you see a solicitor.

Absolutely. You are being chased for thousands. Invest a few hundred in professional advice.

muralig

Thanks all of you for your reply. I have spoken to a solicitor,his suggestion is to pay the £3900 plus the interest and wait for KMC to take me to court for rest of the money. I have already started clearing the balance only about £2500 left to pay, only problem is KMC or their solicitors are not telling us what is the rest of the balance.