Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

Is the mortgage lender being fair and legal?! – mortgage overpayment issue

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Is the mortgage lender being fair and legal?! – mortgage overpayment issue

    Hi
    I have a 25-year mortgage which is to be paid off in year 2040, and there are early payment restrictions for no more than 10% of the mortgage remaining balance.
    I had some spare money, so I paid 10%. I was advised by the bank that I can keep the monthly payment as it is now but shorten the mortgage term by 2 years to 2038, which is a very effective way of reducing overall interests during the whole mortgage term, I agreed and proceeded.
    However, a few months later I received the annual statement letter which still says that my mortgage is due to complete in 2040. I phone them and asked. They said that this is the contractual completion year and they cannot change it and they cannot issue ANYTHING in writing to me saying that it is due to complete in 2038.
    This does not sound right to me. Based on the annual statement – because I don’t have anything in writing to prove I’d be left with two more years to pay off the mortgage than it should be! Is the bank being fair and legal? I would appreciate any advice on what to do.
    In addition, how on earth do I know that they are not charging me interest on 2020-2040 not 2020-2038?
    Thanks for any advice
    Lee
Working...
X