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Interest on Mortgage
Pinder_2
Posts: 1 Newbie
Dear Members,
Can some one please tell me if its leagal for banks to charge interest on mortgage upfront for the whole year even when monthly instalments are being repaid.......thus reducing the outstanding balance every month ???
I feel that interest should only be charged on the outstanding actual balance, and not also on the monthly amount that has been repaid ??
Your help/advice is greatly appreciated.
Pinder
Can some one please tell me if its leagal for banks to charge interest on mortgage upfront for the whole year even when monthly instalments are being repaid.......thus reducing the outstanding balance every month ???
I feel that interest should only be charged on the outstanding actual balance, and not also on the monthly amount that has been repaid ??
Your help/advice is greatly appreciated.
Pinder
Upfront Intererst on mortgage 0 votes
Is it leagal
0%
or illeagal
0%
0
Comments
-
I'm not going to vote in a poll when it's easy to answer the question.
Polls really are unnecessary when it's a simple YES/NO answer.
It's legal. It's part of the terms of the mortgage agreement you signed with your lender.
If your solicitor didn't explain it to you when you bought the mortgage/house, he was negligent.0 -
If you didnt want a mortgage charged like that, why did you pick it?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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