Thread: Taylor-Rae v woolwich - Morgage charges

Hi,

I need to advice/reassurance from somebody. I am currently in arrears on my morgage and have an agreement to pay extra amount over a year to clear up the shortfall. Great. HOWEVER, its one of these morgages thats linked with a current account and the amount of money went up I could borrow on overdraft facility, because the amount has been reduced due to morgage, and I am currently paying £10 amonth to bring it back in line with the current limits, I am being charged £3 pound a day in administration fees! Well, this seems a abit excessive to say the least, especially as they add interest as well.

I want to challenge what cost £3 aday (£90 average a month) but am cautious as its linked with my morgage.

Any thoughts would be greatly appreciatted.

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Hello,

I presume you have an Openplan Flexible mortgage, for those that don't know, when you apply for a mortgage you given a credit limit.

For example you apply for a £100,000 and and initially a £5,000 reserve.

Total borrowing is £105,000 as you pay off your mortgage the balance decreases and the the limit of your reserve increases.

Anyway, back to you issues..

The easiest way to get out of this situation is to make a larger payment to your mortgage, that would in turn increase your credit limit and stop further charges.

I understand that you have arranged a repayment plan of £10 per month. If I was in your situation, I would call their collections department and explain the situation to them.

You have a couple of options

1) Ask them to capitalise the arrears (adding it onto the balance of your mortgage)
2) Ask them to freeze the £3 per day interest charge applied to your current account.
3) Both of the above

Thanks for response.

Can I claim that the £73 pounds arears fee on overdraft and £40 arears fee on morgage (ie total of £123 per month in fees) is lawful ?