Extra interest charged

maude6868

#14

extra interest charged
Don't know if I'm in the right forum but someone might redirect me. Interesting story. I took out my mortgage on 160,000 over 25 years in 1994. However, for some reason, which I now can't remember my mortgage was in 2 lots 120,000 and 40,000. Therefore I now have 2 accounts, 2 lots of interest etc. I never drew down the last 10,000 as I had to have my house completed to x standard to draw down. I was nowhere near that standard so just left it. I never looked again at this mortgage as a direct debit catered for it, whatever it was. I am a secondary teacher in permanent capacity and with all the recent cutbacks my salary has decreased so I have been looking for ways to save a few euro per month as I am the sole earner and have 5 kids. I decided that consolidating these 2 mortgage accounts would amount to savings. I went down that route and was told that they can't be simply consolidated, I would have to re-mortgage. I was told I owe 121,000 roughly and that's when I discovered I have been charged interest all along for 160,000 although I only drew down 150,000. I never drew down the last 10,000, my solicitor has the breakdown. When I asked my lender they said that the 10,000 would be sorted reimbursed when mortgage was paid. That doesn't make sense to me because I have been paying interest on 160,000 for 7 years now although 10,000 was never drawn down. To me that is fraud as the bank is charging me for money I never had. Where should I go from here and are there others in my position.

gogo

Sorry Maude, should have directed you better from ah, you need to start a new thread. button top left Or a mod might just move this for you.

maude6868

Sorry, thanks though for your patient advice, not easy I'm sure with rednecks like me.

jor el

Posts split out.

Blackjack

maude6868 wrote: »

#14

extra interest charged
Don't know if I'm in the right forum but someone might redirect me. Interesting story. I took out my mortgage on 160,000 over 25 years in 1994. However, for some reason, which I now can't remember my mortgage was in 2 lots 120,000 and 40,000. Therefore I now have 2 accounts, 2 lots of interest etc. I never drew down the last 10,000 as I had to have my house completed to x standard to draw down. I was nowhere near that standard so just left it. I never looked again at this mortgage as a direct debit catered for it, whatever it was. I am a secondary teacher in permanent capacity and with all the recent cutbacks my salary has decreased so I have been looking for ways to save a few euro per month as I am the sole earner and have 5 kids. I decided that consolidating these 2 mortgage accounts would amount to savings. I went down that route and was told that they can't be simply consolidated, I would have to re-mortgage. I was told I owe 121,000 roughly and that's when I discovered I have been charged interest all along for 160,000 although I only drew down 150,000. I never drew down the last 10,000, my solicitor has the breakdown. When I asked my lender they said that the 10,000 would be sorted reimbursed when mortgage was paid. That doesn't make sense to me because I have been paying interest on 160,000 for 7 years now although 10,000 was never drawn down. To me that is fraud as the bank is charging me for money I never had. Where should I go from here and are there others in my position.

Those figures really don't add up - I don't get how you've only paid 39K off the Capital in 16 years. You should have about 50% of the Capital paid off by now.