Advice please

cazziej

Hi, we have a £24,500 endowment mortgage on a house that cost £27,500 and is probably now worth £110,000 plus:j

The mortgage is with the Halifax and the usual payment was £265 per month, but due to arrears:eek: , I have been paying £311 for the past 3 months, but this is now cleared.

I notice from looking at other posts that £265 seems a lot to be paying on such a small mortgage. Should I simply ring the Halifax and ask them to reduce the rate - are they lkely to just do that?? Will they not look favourably upon me as I have had some arrears?? We only have 1 year and 8 months left on the mortgage:j I work, but my husband is on IB and higher rate DLA (just awarded last week).

Any advice appreciated.

Thanks.

toonfish

that's 11.5% - are you sure you don't have a repayment mortgage?

cazziej

toonfish wrote: »

that's 11.5% - are you sure you don't have a repayment mortgage?

Yes, Toonfish that is the right amount, and I have 2 endowments on the property.

I did wonder once, as when the interest rate rose by something like 0.5%, my mortgage went up by around £30 and I thought this seemed extreme, but stupidly, I didn't query this.

Any advice?

Thanks, Carol

toonfish

you need to call the Halifax and ask them, seems very odd though. Let us know what they say.

cazziej

toonfish wrote: »

you need to call the Halifax and ask them, seems very odd though. Let us know what they say.

Hi again Toonfish

Just finished speaking to an advisor at the Halifax. Here goes:

She says that as I have had arrears on the mortgage in the past, this is taken into account, as is a failed arrangement (not sure about this one). She also said that everytime they wrote to me they added £40 for the letter, and the charge for this and any other charges were charged at 7.5% IN ADDITION to the base rate!!

Does this sound right?? She is going to launch an investigation and write back to me within 5 working days.

Next question: I know it is possible to reclaim excess bank charges, is it possible to do the same with mortgages - i.e. the £40 charges and the interest accrued because of this??

Look forward to your advice.

Thanks and best wishes

Carol

Noz

cazziej wrote: »

and the charge for this and any other charges were charged at 7.5% IN ADDITION to the base rate!!

Just picked up on this - I think you picked this up wrong (or maybe I am), Halifax will charge you at the rate of their Standard Varaiable Rate (which is usually around BoE + 2% or so), so proabably being charged 7.5%.

toonfish

OK - you need 2 specific answers - what is the total outstanding balance, and what exact rate of interest is being charged? Nothing seems to add up unless the loan is much higher than you think.

cazziej

toonfish wrote: »

OK - you need 2 specific answers - what is the total outstanding balance, and what exact rate of interest is being charged? Nothing seems to add up unless the loan is much higher than you think.

Hi Toonfish and Noz, thanks for your replies.

Wth regard to the amount of the loan, I received a statement not too long ago, that I am sure, gave the amount as £24,???. I am going to look in my messy drawer and find this now - will it give me the interest rate on the statement?

Will be back, but I may be a while (you haven't seen my drawers!!).

Carol

dwsjarcmcd

Are you paying for any insurances within that amount e.g Buildings & contents, income protection?

These tend to be wrapped up in the monthly payment

David

cazziej

dwsjarcmcd wrote: »

Are you paying for any insurances within that amount e.g Buildings & contents, income protection?

These tend to be wrapped up in the monthly payment

David

Hello David, yes I do have building and contents insurance in with the payment, but no income protection.

Toonfish:

Not quite found what I want, but I have found 2 Mortgage Interest Rate statements: the first, dated 11th November 2006 states:

Amount outstanding at 30.11.2006 is £23,946.23
Date of effect: 01.12.2006, Type: Halifax Standard Variable Rate, Loan Type Number HVR001, Interest Rate %: 7.000.

Second statement dated 13th January 2007 states:

Amount outstanding at 31.01.2007 is £24,649.80
Date of effect: 01.02.2007, Type: Halifax Standard Variable Rate, Loan Type Number: HVR001, Interest Rate %, 7.250.

I am sure I have had another statement since, but can't just lay my hands on it, but I am SURE the amount outstanding was defintely £24 thousand and something.

Any more advice??

Forgot to add, the advisor told me my normal monthly payment is £272.88 .

Thanks, Carol.

toonfish

I think you probably have a repayment mortgage