Clearing a mortgage - well almost!!

Jan 02, 2006 2 Replies
B

Please can someone give us some advice.



We have a mortgage of £20,000, however charges due to payment problems have pushed that up to around £22,500.



During the next few weeks we are due to receive a legacy payment ofaround £21,000, and intend to pay £20,000 of that to the building society to cover the loan + £500 to cover payment arrears. This will leave the £2,500 "charges" for us to clear.



Does anyone have any advice on how best to approach the building society about dealing with this final £2,500 balance?



The reason the charges built up is because we have been going through serious financial difficulties and at the moment we would be struggling to find repayments of anything more than about £50 per month.



The other option is to try and find a lump sum to clear the outstanding amount - but is there any likelihood of them accepting a percentage offer?



Thanks for your help.



Alan



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T

Alan

============== I dont know what the term of your mortage is, but if,say, there were 10 years left, that would be 250 a year pus the interest. Cant be bothered to calc it but even 25/month would probably cover that plus the interest.

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J

In message , beechwalker writes

Go and see them and tell them that you are paying in £20,500 to reduce you mortgage and that you would like to reschedule the remaining debt. Tell them you can afford to pay £50 per month and they should go along with it.

Dont try and start allocating some bits to the debt and some to charges and some to arrears. Just give them the dosh and they will sort it out.

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