mortgage mixup

onion_2

hi

we were wondering if any one could offer some advice on the following:-

we have recentley switched mortgage lenders, the new lenders have made a mistake with the figures. the new lenders have arranged a capital repayment mortgage but the figures they have worked out are based on an endowment mortgage. we have completed and the mortgage has been drawn down. based on the figures they have given us to repay there will be an under payment of approx £27k. the big question is can we hold them to the mortgage agreement ???

Tiddler_2

Hi,

So has the lender issued a mortgage illustration/offer stating that your mortgage is on a part repayment, part interest only basis and you should pay £X per month.

OR

Have they issued a mortgage illustration/offer stating that your mortgage is on a repayment basis and so you should be paying £Y per month, but are only collecting the £X per month?

If it's any of the above examples then there is no chance of them giving you £27k at the end of the mortgage.

Easiest way is to contact them so that your mortgage is corrected as soon as possible.

onion_2

hi

the mortgage is a capital repayment mortgage based on a tracker rate of 5.54%

mortgage loan 47847.14
1st payment 264.67 due next month followed by payments of 221.10 per month until october 2015 followed by a final payment of 225.11

does this help with the question

Tiddler_2

Well that's an interest only mortgage, so in 7 years time you will have to find £47847.14 to pay off the mortgage.

The fact that you asked for a repayment mortgage and got an interest only mortgage is an error, but if you check your mortgage offer I bet it was issued on an interest only basis.

If you were expecting to pay more each month, then the fact that you knew you were paying less than you were expecting to would go against your pleading ignorance!! Plus when you get your annual statement and it shows your balance hasn't gone down at all would be an indicator to query it.

onion_2

we are not pleading ignorance at all we raised this issue with the mortgage lender last week we just wanted some advice before our next appointment