mortgage charges

[bazzle]

i,m with kensington morgage.. ran into difficulties they have consistantly charged me £50 every month for being behind with payment, even though we agreed a higher repayment each month to catch up.

if i approach them my worry is they will want to terminate morgage.

[zootscoot]

Hi Bazzle,

 

Welcome to the forum.

 

I'll move this thread over to the mortgage forum you can find this as a sub-forum off the other institutions forum.

 

This is a common problem experienced by other users in the mortgage forum.

 

Kensington in particular are renowned for being one of the worst mortgage provider in terms of charges. If possible I would suggest you try to change mortgage. Although watch out for the possible implications of having to pay an ERC. At present your arrears are likely to increase despite your extra payments and this will simply eat into any equity you may have in your home.

 

There are some better deals out there in the sub-prime market and others in a similar position to you have managed to receive offers from other companies on more favourable terms. It is important to get a fixed rate deal as the variable rates (even if discounted) in the sub-prime market can be quite alarming and oppressive.

 

Also Kensington have a term in their mortgage which makes the borrower liable to pay or their legal costs. This could means you could end up paying them more for them defending your claim than what you claim back in charges. We are currently looking into the position of these clauses and hopefully will soon be in the position where we can advise people to go ahead with claims with out the risk of being liable for legal costs.

 

Have a good read through the threads in the mortgage forum in particular those on Kensington. Give serious consideration to changing your mortgage and then hopefully there will be better news on the horizon regarding mortgage claims.

 

All the best

 

Zoot

[splashin]

My mortgage is interest only and ends Feb 2009. I paid off a lump sum in 2006. When I recieved my yearly statement with transactions showing, they had charged me £3800 for paying off this lump sum, can they do this?

[mattfromnotts]

If you read your terms & conditions, most banks seem to restrict the maximum amount you can pay off, so if you have an Early Redemption Charge you will still pay a pro-rata amount if you pay off more than they allow.

 

My current mortgage allows no more than £500 a month over the normal payment to be paid off without incurring some amount of ERC.