Unfair Mortgage Fees

mjnf

Hello, i'm looking for some advice on what i think could be a reasonable situation for me to reclaim unfair mortgage fees.
I took out my mortgage in January 2008. The cost of the house was £105,000 but i took a 95% deposit so the total mortgage was £99,750.

I originally took out a 40 year term, meaning their is now 35years remaining (i plan on changing this next month to 20 years).

At the time I locked into a 2 year deal as it was just before the recession began and agreed to repay £650pcm for 24 months.

Unfortunately i lost my job and had some trouble keeping up payments in the second year. I did get a few letters and phone calls warning of repossession and threatening visits from the mortgage company representatives at my expense. However i managed to get a new job and pay off all the debt on the mortgage before any visits were arranged.

Now i understand their were fees etc added for letters to be sent and other admin bits and pieces.
However i have recently been looking into my account and have found the balance is currently £98,700.

Ok, i know most of the interest is taken at the beginning of the mortgage but considering how much i've paid over 5 years, for approx £1000 to have came of the balance seems a bit of a joke.

Just wondering if this seems strange to anyone else.

Original Balance: £99,750
Current Balance: £98,700
Payments made:
£650 for 2 years = £15,600
£360 for 3 years = £12,960
= £28,560

DevCoder

Not unusual at all, you pay next to nothing off the capital for the first year or two of the mortgage, this coupled with your fees due to arrears etc would add hefty whack back to the capital amount.

roonaldo

it doesnt work like that, as you have said there is interest to pay, as you repay the mortgage the capital element increases and the interest decreases.

_Andy_

Google 'amortization calculator'

magpiecottage

Assuming you went on to the Halifax Standard variable rate at the end, you would have paid around £25,300 in interest and reduced your loan to £96,250. However, that assumes all payments on time so that the capital went down and interest stopped being charged on amounts repaid - as well as ignoring fees and any buildings insurance premiums which the lender added to the loan.