Help needed with mortgage arrears question!!

buff-tom

I currently have mortgage arrears secured by a court order suspended subject to paying my monthly mortgage payment + £100. I yesterday received a full statement from them and found out that out of the £100 I am paying towards the arrears £40 is being charged as an administration fee and additional interest of £51 per month so I am effectively paying £9 towards the arrears.

I thought that once it had been to court the interest was frozen?

Is there anything I can do about the administration charge as like the bank charges they seem excessive?

any constructive help welcome.

Conor_3

You can only go back to the court and explain what is happening, in effect challenging the company.

They're entitled to stick interest on BTW.

silvercar

Interest on a mortgage is not generally frozen. So £60 of the £100 is going towards your mortgage.

The rule on the admin charge (£40 per month is average) has been that it was detailed in the mortgage terms and conditions that you signed up to when you took out the mortgage.

I think Martin may have posted about this being the next one to tackle.

Have a look on the mortgage board for some info; in fact you will get more answers on that board.