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£1000 'loss of earnings charge' ???

Kevin_Browne
Kevin_Browne Posts: 2 Newbie
in Mortgages & endowments
I took out my mortgage in 1989 at the Skipton Building Society. Fixed for 3 years. After the 3 years i discovered that they added £1000 and said it was for loss of earnings due to high intrest rates.

I thought that was the reason for having fixed rate mortgages?!?!?

Why was i penalised? Is it right? and can i claim it back?

Comments

  • dunstonh
    dunstonh Posts: 121,276 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    You need further clarification on what that £1000 is. It doesnt make sense at the moment.
    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.
  • dwsjarcmcd
    dwsjarcmcd Posts: 1,857 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I agree with dunstonh, this doesn't make sence at all to me. Also, if I'm reading this right, this charge was levied in 1992, which begs 2 questions.

    1. How come you are only challenging this now and
    2. If this was added to the loan, was interest applied (which it normally is on fees added to the loan)

    Are you still with the Skipton?
This discussion has been closed.
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