wrong mortgage

[LAN01]

Not sure where I should post this!!

Last year we changed our mortgage back to a repayment mortgage (or so we thought)

We have just received our mortgage statement through only to find that is still an interest only mortgage we are paying

We have contacted the lender who informed us that this was correct yet we have all the paperwork confirming the change to a repayment one.

We did query this last year as the repayments were quite a bit less than they had quoted but when we phoned them they confirmed that yes those figures where right and it was a repayment mortgage.

Can anyone please advise me on our rights with regard to this.

We are wanting to re-mortgage to pay off a secured loan we took out to clear a charging order from our property last year but we are tied to this mortgage for another year before we don't have to pay any penalty charges. But of course as they have not taken anything off the orginal amount borrowed the cost of this was way to much to settle the old mortgage loan.

The mortgage lender has asked us to forward copies of the correspondence that we have in regard to this matter but have basically said that there is nothing they can do.

Can anyone help?

[CAGisforME]

What a pickle!

I would suggest doing as they say and forwarding the correspondence to them, at the same time asking them for the signed agreement that you signed, in order to ascertain what type of mortgage you signed up to.

If you did indeed sign up to an interest only by mistake then I feel that there will be little you can do, however, if you didn't then, despite what the lenders say they will HAVE to rectify this. And they know it.

Get the correspondence off and then see how they respond. I'd tell them in the letter that you will be taking it further if you discover they have made a mistake and you have suffered as a consequence.

Hope that helps

[LAN01]

Thanks for the advice CagisforME.

It clearly states on our copy that and I quote:

"Your mortgage requirements

You wish to change your existing mortgage product to a new product, and amend your mortgage term, and amend the repayment method of your mortgage.

Exisitng loan amount £XXXXXXX plus £XX for fees that will be added to the loan - see Section 8 for details

Value of the property £XXXXXX on XX/XX/XXXX

Term remaining XX years XX months (at XX/XX/XXXX)

Repayment method: You require the loan to be converted so that it will be on a Repayment basis.

Following us receiving the above we duly signed and returned the paperwork

We received a Product confirmation letter quoting the same illustration number as the one we had signed no where on that letter does it state that it is a repayment mortgage.

As you can imagine we are not at all happy about this especially as there is 12 months payments not been taken off the original loan amount.

We are sending copies of the paperwork off to them, but surely they must admit that they are in the wrong?

Lan

[CAGisforME]

I can't state for certain that they WILL admit that they are wrong, obviously.

But, if you have the paperwork to prove they ARE, then they are going to have little choice!!

Send your proof off, with a polite, but strongly worded letter, telling them what you want.

IE The 12 months payments paid OFF the capital amount and a properly executed agreement that matches that which you signed up to.

Good Luck.

[LAN01]

Thanks for your help, I'll let you know how I get on!!



PS

and click on your scales for you help!!!

[CAGisforME]

Thanks for that.

I hope it all goes well. Come back and tell everyone how you are getting along. There is so much help and advice on this site. I don't know how I managed without it!

[LAN01]

Tell me about it!!!

I just wish I had known earlier, it would have saved me many a sleepless night!!!

But getting there after a long uphill struggle I can now see the light at the end of the tunnel