HELP PLEASE with FEEs

sheppyk · 18 May 2017 at 9:11AM

Hi All

So basically bit of a back story is me and my partner had been l living together in our house with a mortgage from Coventry Building Society but for our own reasons decided to sell up and part ways. The house is on the market but not selling as quickly as we would like, the mortgage company have stopped the mortgage on the 8th June so we are paying upto then full mortgage rate but after that they want £15 a day until the house sells, are we obliged to pay this?

I ask because we have moved out of the house and i am paying rent on my own place now which will be hard to keep on top of with £15 a day fee's to pay which soon add up to a sizeable amount i could really do without.

Anyone could give me any advice or how to avoid this fee then please let me know

Many thanks in advance!

Doozergirl · 18 May 2017 at 9:16AM

It won't be fees, it's interest. Of course you are obliged to pay it. I'm not sure hownthey can 'stop' a mortgage without the house being sold. It doesn't work like that.

It sounds like they've issued a redemption statement which shows the amount due on the 8th June if you completed on a sale then, plus letting you know what the daily interest is should you complete later. I've just had one for my sale which is going through.

I have a feeling that nothing has changed and that you are still obliged to pay every month as you do now. Perhaps they have agreed to halt the capital repayments for now, but that is likely to affect your credit rating.

You can ask Coventry for a payment holiday which will buy you some time but the amount due will still be added to the mortgage.

saajan_12 · 18 May 2017 at 11:49AM

What is your monthly mortgage payment, mortgage balance outstanding and interest rate?

Sounds like they've stopped the monthly payment and are instead taking daily amounts so the payments can be properly pro-rata'd. Until completion when the mortgage is paid off, you're still borrowing the money so you still have to pay interest at least.

G_M · 18 May 2017 at 1:21PM

As above.

The fact that you are paying rent elsewhere may be a financial problem for you, but is not relevant to your mortgage agreement with Coventry.

I'm not sure why you think you can simply stop paying for a mortgage if it has not been paid off.

You borowed £X00,000 from them.
You need to repay £X00,000 to them, plus interest
Interest accrues daily, so until you repay the £X00,000 the interest will continue to need paying

My advice would be to go in to a Coventry office, see a mortgage adviser, and get an explanation so that you fully understand your obligations, and your choices.

agrinnall · 18 May 2017 at 2:24PM

Well, you could stop paying it, but in effect you would then be handing over the house to your mortgage provider. If they can sell it and recover their mortgage lending plus accrued interest plus costs then you might even get some money back, but if they sell without covering what is owed then they will be coming after you for the shortfall. It's likely that the failure to maintain repayments would trash your credit report. And of course you'd need to get your partner to agree with your proposal.

davidmcn · 18 May 2017 at 2:56PM

I suspect the lender hasn't said they're going to "stop" the mortgage on 8 June, just that they've issued a redemption statement with that as at the proposed redemption date (and a daily interest rate of £15 beyond that). In which case nothing will actually happen on 8 June if the mortgage isn't repaid, the monthly payments will just go on as normal.

Or maybe the OP means it's the end of a fixed rate period?

HELP PLEASE with FEEs

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