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Extra interest charged
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30-07-2010 1:08am#1#14
extra interest charged
Don't know if I'm in the right forum but someone might redirect me. Interesting story. I took out my mortgage on 160,000 over 25 years in 1994. However, for some reason, which I now can't remember my mortgage was in 2 lots 120,000 and 40,000. Therefore I now have 2 accounts, 2 lots of interest etc. I never drew down the last 10,000 as I had to have my house completed to x standard to draw down. I was nowhere near that standard so just left it. I never looked again at this mortgage as a direct debit catered for it, whatever it was. I am a secondary teacher in permanent capacity and with all the recent cutbacks my salary has decreased so I have been looking for ways to save a few euro per month as I am the sole earner and have 5 kids. I decided that consolidating these 2 mortgage accounts would amount to savings. I went down that route and was told that they can't be simply consolidated, I would have to re-mortgage. I was told I owe 121,000 roughly and that's when I discovered I have been charged interest all along for 160,000 although I only drew down 150,000. I never drew down the last 10,000, my solicitor has the breakdown. When I asked my lender they said that the 10,000 would be sorted reimbursed when mortgage was paid. That doesn't make sense to me because I have been paying interest on 160,000 for 7 years now although 10,000 was never drawn down. To me that is fraud as the bank is charging me for money I never had. Where should I go from here and are there others in my position.
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#14
extra interest charged
Don't know if I'm in the right forum but someone might redirect me. Interesting story. I took out my mortgage on 160,000 over 25 years in 1994. However, for some reason, which I now can't remember my mortgage was in 2 lots 120,000 and 40,000. Therefore I now have 2 accounts, 2 lots of interest etc. I never drew down the last 10,000 as I had to have my house completed to x standard to draw down. I was nowhere near that standard so just left it. I never looked again at this mortgage as a direct debit catered for it, whatever it was. I am a secondary teacher in permanent capacity and with all the recent cutbacks my salary has decreased so I have been looking for ways to save a few euro per month as I am the sole earner and have 5 kids. I decided that consolidating these 2 mortgage accounts would amount to savings. I went down that route and was told that they can't be simply consolidated, I would have to re-mortgage. I was told I owe 121,000 roughly and that's when I discovered I have been charged interest all along for 160,000 although I only drew down 150,000. I never drew down the last 10,000, my solicitor has the breakdown. When I asked my lender they said that the 10,000 would be sorted reimbursed when mortgage was paid. That doesn't make sense to me because I have been paying interest on 160,000 for 7 years now although 10,000 was never drawn down. To me that is fraud as the bank is charging me for money I never had. Where should I go from here and are there others in my position.
Those figures really don't add up - I don't get how you've only paid 39K off the Capital in 16 years. You should have about 50% of the Capital paid off by now.0
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