My Mortgage Has Increased Can You Tell Me Why?
![Mortgage Mortgage Holiday Mortgage Break](images/20993.jpg)
Q.
I have an insurance with my mortgage, I was in a difficult position for paying my mortgage so I phoned my mortgage provider and asked if I could have 6 months break. They agreed over the phone and advised me to take the break.They said it wouldn't cost me anything, they never mentioned that they would add interest onto my mortgage. I have not recieved any letter to say anything about the 6 month break.
When my 6 months were up I recieved a letter saying my mortgage was now 100 pounds more, the interest rate has gone down so I do not understand why this has happened can you give me any answers?
![](images/dots500thin.gif)
A.
From the sound of it, your mortgage provider didn’t go into a great deal of detail with you about what was involved in taking a break from your mortgage for six months, which has brought you a real shock.
The biggest problem would seem to be that you didn’t have anything in writing from the mortgage company to explain all the conditions. Obviously you were up to date on your mortgage or you wouldn’t have been allowed to take the break. But you should have been advised that having financial problems isn’t the best reason for a mortgage holiday. The ideal situation is where your mortgage is flexible and you’ve been able to overpay in advance to cover those mounting interest payments. You should also, in many cases, need to have at least 20% equity in the house.
What seems really strange is that, from your question, all this happened without any paperwork. Almost certainly you should have had to fill in and sign some forms for everything to be processed and for the mortgage break to be legally in place, and the paperwork would need to be with the lender at least a month before the break was scheduled to begin.
It’s inevitable that the interest would continue to mount; there’s simply no way to avoid that. However, a payment increase of £100 a month seems excessive unless you have a particularly large mortgage.
Probably the first thing you should do is contact your mortgage lender. Ask why there was never any paperwork sent to you regarding the break, not only the forms to sign but also a breakdown of what your payments would be after the break.
If you don’t receive satisfactory answers, it might well be worth your while talking to a solicitor about the situation, because there seems to be something quite fishy about it all. Also, if you were having problems paying your mortgage before, then with another £100 a month to find, you’re likely experiencing even greater difficulty now, which means that you might want to look around for another, better deal, if you can find one (the mortgage holiday shouldn’t affect your credit rating at all).
Re: Car Hire Refund?
I rented a car online to collect at Sardinia Airport, the rental was made on the day I was due to fly (approx 10 hours before collection) however…
Re: Dealing With Cowboy Builders
I had a company to block pave my front garden, I asked for a membrane which he agreed. I asked several times if the membrane was…
Re: Dealing With Cowboy Builders
I had a company to block pave my front garden, I asked for a membrane which he agreed. I asked several times if the membrane was…
Re: Dealing With Cowboy Builders
I've had the misfortune of being totally ripped off by a builder for over £10K. I found him on Checkatrader and they have…
Re: What Are my Rights on a Faulty Television?
We bought a samsung 50" au8000 smart tv in april 22 its had a factory reset etc as per troubleshooting guide but…
Re: A Guide to the Consumer Rights Act 2015
I had new laminate fitted in the hall, and new (matching colour) carpet fitted on stairs, landing and bedrooms, in a…
Re: What Are my Rights on a Faulty Television?
Bought a Hisense Tv in October 2023 opened it to check it and put it back in the box due to decorating. Husband…
Re: Dealing With Cowboy Builders
Beware of a roofing company called TECTRA ROOFING in Worthing West Sussex, my builder used them for my kitchen and lounge…
Re: Dealing With Cowboy Builders
ESBP Specialists Ltd - The MOB that took over £36,000 from us for sub standard/dangerous/illegal work on a renovation between May…
Re: Holiday Lets: Is the Contract With Owner or Agent?
Booked accommodation through Sykes and had to agree to a £350 good housekeeping bond to cover…