Mortgage different to what I signed.

Davidtechman

Hi All

Hope you can help.

I've been paying my mortgage via standing order so set amount comes out.
I'm in the position to fully pay off my mortgage 5 years prior to end date.
Wanted to settle up, then maybe consider moving in a few years.

HEADS UP: My mortgage was with one bank originally and another bank took over.

So I was gathering all my documents together, So I can file away altogether etc.
I contacted the bank for all my documents, deed etc as I'm about to settle up, As some files hidden away in the loft, so I thought I'd just ask the bank to forward them for reference.

Then things played out very odd, regards what the bank was saying and what I found out.

So my mortgage was Part and Part.

But when I was on the phone, the bank kept referring to interest only and said remaining balance etc.
And wanted me to confirm it was an interest only mortgage.

Its been on standing order and it confused me as I was so sure It was part and part.

So I said I will call back.

So I went to my loft and dug out my documents after 2 days of searching, I did, in fact, sign a part and part.
I then paid for land registry search and saw on file the mortgage for my property was part and part.
But the bank says its Interest Only.

Going back over all records from yearly paperwork, Now all documents are in one place, It seems it hasn't been going down, and they have only been charging me interest only.

So I've been pushing for the documents, as I was feeling uneasy and sceptical, I said I haven't got my documents, could they provide me with a copy of the signed agreement and copy of the deeds.

Bank has said they don't have any documents, not the signed mortgage agreement, they don't have any deeds as all deeds are now destroyed and are digital.

Deeds destroyed? Doesn't sound right.
And they have no documents that I signed

Before I go back to them, I'm asking for any advice, Or any information that I can present the bank, or anything opinions,
Is it classed as mis-sold?
have they done something naughty or illegal?
Can they change it from part part to interest only, without telling me?
Should they have said documents?
Why do they want me to confirm its Interest only and then pay a balance that has not gone down?

getmore4less

Why were you not checking your annual statements.

Are you sure it was standing order, most are direct debit.

it is usually fairly obvious from the payments when you are not paying enough even if you don't spot it on the statements.

IAmWales

As above, have you never checked your annual statement?

My first mortgage was part and part, the amount borrowed was IO and the fee (added to the amount borrowed) part was repayment. The fee element was paid off because I was repaying the capital on it, so over time the mortgage went from part and part to interest only.

It's not unusual for deeds to be destroyed, if you search on the Land Registry website you'll find a copy there.

Thrugelmir

Bank has said they don't have any documents, not the signed mortgage agreement, they don't have any deeds as all deeds are now destroyed and are digital.

Correct land registry is now digitised. Paper records are redundant.

Is it classed as mis-sold?

On what grounds. You applied for a mortgage and accepted the terms on which it was offered to you.

Why do they want me to confirm its Interest only and then pay a balance that has not gone down?

Because lenders are now asking how the balance will be repaid at the end of the mortgage term. The call centre operative will be following a set script.

You still owe the money. The fact it hasn't reduced is down to you.
Every year you've been sent a statement. This will clearly show the detailed transactions , payments made, interest charged, balance etc.

Davidtechman

It's not unusual for deeds to be destroyed if you search on the Land Registry website you'll find a copy there.

There is no pre-registration deeds on the land registry, nor do the bank have them.
But There is a mortgage deed that relates only mortgage offer, saying its part and part, which I signed "Part and Part"

Why were you not checking your annual statements.

Statements over the year never stated whether part and part or even interest only.

Use to say what I paid each month, and when I saw the total referenced, it was exact amount I had borrowed.
So I always read it reminding me the total amount borrowed.

And each time it came in yearly, I filed it away, and just paid what agreed each month.

I didnt each year look at it and say "ohhhh its at this now"

Just paid it as I did, and got on with working etc.

But now im coming to pay it off, and my agreement was part and part, and my balance to pay is exactly what I borrowed.

It hasnt gone down at all. Its still the same and they are telling me its an interest only mortgage when It is not.
And checking back over annaul statements, they started to add it is a interest only mortgage.............. IT IS NOT INTEREST ONLY tho

sevenhills

Davidtechman wrote: »

There is no pre-registration deeds on the land registry, nor do the bank have them.
But There is a mortgage deed that relates only mortgage offer, saying its part and part, which I signed "Part and Part"

If there was ever a endowment policy with the mortgage; would you be allowed to sell it without informing the bank. Is that what the bank is saying has happened?

Davidtechman

If there was ever a endowment policy with the mortgage; would you be allowed to sell it without informing the bank. Is that what the bank is saying has happened?

There was an endowment, it was separate to the mortgage offer and separate to the bank, years prior to the mortgage. When taking out the mortgage, the bank didn't want to know about the endowment.

I would put about £300 (3 hundred) into the endowment, but there was a crash in the endowments.
The surrender value was losing £3000 (3 thousand) per month, so when I paid in £300, It lost £3000.

So I had to surrender it, because it could have gone to 0.

I didnt even get the money back that I paid into it.

May I ask how this could be relevant If I signed part and part becoming an interest only?

minimike2

Take a look back at those statements. They will almost certainly state the repayment method.

Not sure how you thought it was part repayment if you knew each time you got a statement that the balance wasn't going down.

Clearly it IS an interest only mortgage, so that point doesn't appear to be up for debate. What year was this mortgage taken out?

Davidtechman

What do you mean it's clearly Interest Only?

My documents that I signed, Is for a Part and Part mortgage, the document number on the land registry refers back to being Part and Part mortgage!

How is it clearly interest only??

As mentioned, I filed the annual statements away, and the figure it displayed I assumed was the amount borrowed.
In the early years, the annual statement was very very very different.

IAmWales

Davidtechman wrote: »

What do you mean it's clearly Interest Only?

My documents that I signed, Is for a Part and Part mortgage, the document number on the land registry refers back to being Part and Part mortgage!

How is it clearly interest only??

As mentioned, I filed the annual statements away, and the figure it displayed I assumed was the amount borrowed.
In the early years, the annual statement was very very very different.

Why did you assume the figure was the amount borrowed? You can't blame anyone but yourself for failing to read the statements properly.

In what way were the earlier statements different?

Rather than focusing on trivialities, have you thought about how you are going to repay the capital you owe?

Davidtechman

Clearly, you have not read this whole thread.

I said I'm in a position to pay my mortgage off!

regardless that I never kept checking my annual statement adds no value, except telling me off for not noticing sooner.


So basically its ok for the bank to treat it as a complete different mortgage offer, and because I discovered now, all the money I paid based on part and part.... which was a signed agreement, now all that money is lost, because bank treated it as a completely different mortgage offer, that I did not sign.

Is that what you're saying?

and that the contract means nothing?