Bank not taking payments for my mortgage

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agencydude

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Hi
I drew down a €200k mortage last september when I was moving house. I was expecting the bank would take payments from my current a/c every month since then. However they haven't yet!!
I also haven't been informed of any changes to interest rates as they've gone up recently.
I reckon there could be some adminstrative error. I know that the bank official I was dealing with in the bank went on maternity leave the day after she drew down the cheque. So I reckon she may not have handed the documents over to someone else in the bank.
So I'm wondering what I should now. Any suggestions?

Should I do nothing and hope the bank forget they gave me €200k?
Should I approach the bank and point out this issue to them and get the payments up to date?
They type of mortgage was an ECB tracker with 1st yr interest only and annuity mortgage fo 20 yrs after that .
Thanks in advance
 
The bank definitely won't forget they gave you the money! It's an oversight and I'd contact them straight away and arrange payment. It won't do you any good in the long run if they have to contact you. No one fails to notice that a bank is not charging them for their mortgage, so it'll sound like you were trying to fiddle them.
 
Interest will accumulate on the total borrowed whereas if you were paying your monthly payment, the capital would be decreasing and likewise the interest due. I was a bank official for many years and it appears that the mortgage was probably set up with a "payment holiday" or some concessions for the 1st year, perhaps in error however, there is always the likelyhood, knowing banks methods intimately, that surcharges could be accrueing. It would be in your best interests to establish that the Bank are in error firstly and set up payment asap.
 
The mortgage was to be interest only for the first year so Op wouldn't have been paying off any of the principal. However I think the bank will add in the missed interest payments to the capital amount borrowed and OP will have a larger debt when this is corrected?
 
Apologies, didnt register bit about being interest only mortgage. However, Banks have devious methods for charging especially when they think you have arrears! It will always be your fault if you default. Contact them it is the wisest thing to do.
 
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