Mortgage interest rates help

jayo2004

I recieved my statement for my mortage and to be honest, I never used to even look at them. I got a Mortgage in 2001 from TSB.

Original Loan was for €99,039.57
Interest rate 4.5%
Monthly repayments €416.11
The original loan term was 300 Months (25 Years)

In 2014 I got into financial trouble and couldn't pay the mortage. I ended up in €12,000 arrears. I went to the bank and they extended my loan term to 339 Months to cover the arrears and i havent missed payment since.

Statement says I still owe €71,000 and there is 274 months remaining. I spoke with them and they said in 2014 I had 187months and then it was resturctued.

It just doesnt add up.

I rang again and spoke to someone else and they said its all interest. In 2003 out of the €416.11 repayments €373 was interest. In 2019 €242 is interest.

Surely this cant be correct after paying back close to €80,000.

If you get a 25 year mortgage or in my case 28.2 months mortgage (after the arrears) and are paying it for the last 18 years how do I still have 22 years left on it.


I also have another loan that was got at the same time for €55,000 this is personal loan and its 6.0%. this is the same thing. both loans were for the house. One to buy and the other to do it up.

dotsman

It's difficult to say without knowing the exact figures. What was the balance immediately prior to falling into arrears. What was the balance at the time of the restructure?


It's not as simple as looking at it as a 28.2 year mortgage. The fact that there was a period with no repayments meant that the interest kept rolling up in that period.

As part of the restructure, it would have been a case of "restarting" the mortgage for the outstanding balance.

raxy

Are you sure you have your initial mortgage payments figures are correct? a mortgage of 99k over 25 years should have a repayment of about 550 not 416.
With a monthly payment of 416 you would have been paying about 370 interest each month & were paying less than 50 off the balance of the mortgage.

You can use this site to help figure out the costs. https://www.drcalculator.com/mortgage/
It wont match exactly but should be fairly close.
I made a spreadsheet to work out my mortgage & when I put your figures for the original mortgage it looks like it would take close to 50 years to pay off at that monthly rate.

Best advice would be to bring your statements to a financial advisor & see what they can figure out for you.

Is your other loan paid off?

jayo2004

No other loan is not paid off and is the same 272 months left also. Also only something like 14,000 only paid off it in 18 years

raxy

What's your house worth? I'd talk to another bank & try re-mortgage your house & make those 2 Loans into a single mortgage at a better interest rate.
Your paying an obscene amount of interest. I can't believe a bank would let you take a mortgage at that rate & the other loan on top of it. You'll save a fortune.

jayo2004

raxy wrote: »

I can't believe a bank would let you take a mortgage at that rate & the other loan on top of it. You'll save a fortune.

This is the hard part to take. I was in a really bad finanical place in 2014 and spent the week with them trying to sort it out after missing some payments. A lot of this stuff goes over my head and at the time I was just happy i was meeting with their mortage advisor to sort it out. I just presumed they had done the best for me. The same advisor is still at the bank and I am meeting with her on Friday.

My house is woth around €180,000

teamcyclist

I'm not sure about the calculations up to now but you definitely need to go to another provider and amalgamate the two loans and fast! Your problem going down this avenue may be your poor credit record - well it sounds like you have one from what you say. You shouldn't be paying anything close to 6% these days so do anything it takes to remortgage amalgamating the two loans. I don't know if MABS can help you but you definitely need good advice and it'll save you thousands! Just for starters go into a few institutions and arrange for a meeting but maybe bring along someone who you trust has a good knowledge of mortgages, interest rates etc.

raxy

How'd you get on with the bank?