calculation must be wrong

betterfixit1

we have 28000 interest only (endowment cover) we ahve also taken out £20,000 loan from 2003 ending in 2012 and nine months. We are paying £613.00 per month, this seems too much to me can anyone tell me for sure as i have used mortgage calulators and everything. (I have used the figure of 7% to check even though it has been lower and the 20000 went through a tracker until Jan 2007. Had £28,000 since 1986.

shaunrc

Hi Betterfixit

I have taken a look at your numbers and have the following suggestions.

1. I would double-check to see if all your mortgage was switched ( in error ) to repayment as this would fit your circumstances.

2. What interest rates are you paying on the 2 sections? Is your loan rate the same as you are paying on the mortgage?

Banks/building societies do make mistakes in their maths but your numbers could be a result of both your debts being treated as one repayment loan which is worth checking.

Shaun

betterfixit1

Hello you could be right. We are looking into it as this should not happen as endowment covers the 28000. I have asked my friend to go and ask herself for a 20000 loan over 9 years and see what the cost is. I have also asked for a review. Also reading here we realise that we are paying more by having a yearly interest charge instead of monthly charge (a bit late but better late than never) I also realise that when we were forced to have their house and contents insurance cominbined and paid interest on both insurance and mortgage payments was not right, so one of things also looking at.
Asked for a review as finished one deal and since january are charging us 7.5%. it is a shame for people like us who started in the 80s as the culture was to stay with these people, not change to better deals.

Is there any way to check payments etc?

shaunrc

Hi

The best thing to do is to contact your lender and ask for a breakdown of your loans.If you get a statement this will provide the answers you want or even a helpful person at a call centre would be able to tell you what you want.

betterfixit1

yes we have asked for a review. We have no special deals at the moment and are paying 7.5% to Halifax. have we got a right for our payments to have monthly instead of yearly interest put on the account? Can they refuse to do this?

Can anyone tell me if it was legal for them to make us add the house contents and buildings to the mortgage and charge us interest on all of it each year?