GE money, fees added to mortgage

[bish]

Have received letter from GE money saying they are increasing my monthly repayments by £40, for the remaining term of the mortgage, to pay off a fee balance of £3,804.92. As far as I can tell this amount is entirly made up of charges. Have drafted a letter to them regarding this matter, pointing out OFT report on late payment charges, also pointing out that mortgage rate interest will be applied and any future late payments will incur further penalty charges plus extra interest. Is this legal ?. First payment not due until August, so not actually paid any charges, as up until this point charges lumped on end of mortgage. Why the sudden change?. Before I post the letter any thoughts from any one on what my next move should be.

 

Regards bish.

[Blossomandebony]

Hi, Bish,

 

I would claim back the charges NOW.

 

Look here for what exactly you can claim for:

 

http://www.consumeractiongroup.co.uk/forum/mortgage-companies/139339-what-you-can-cannot.html

 

You say there could be £3000+ worth of charges? If they go back a few years, think of the interest that has been added on!

 

When you put your claim in you must include the interest they have made on these charges, (estimate or use a spreadsheet from here). If they do not respond favourably, you put in a county court claim - the good news at this point is that you can also add the statutory 8% interest!

 

As you can imagine your claim will be pretty big!

 

BAE

[bish]

Thanks Blossomandebony, although the charges have been applied none have been paid by me. Initialy they were put aside to be paid at the end of the mortgage term, now GE have decided to increase the mortgage to pay off what would have been due at the end, so I only start paying them from this month onward. Going to send letter and see what happens, If they are stupid about it I will contact FSA, got 9 years to sort it out as that how long to run on mortgage.

 

Regards bish.