no reduction in Mortgage amount after 9 months

R

ragdublin

Guest
I have switched mortgate provider recently and requested my old mortgage bank to provide me statement up untill closing date.(year 2008).

Looking at the statement for 2008, noted begining balance (eur 210,599.00) and the end balance (209899.92). it is really strange that the prinicipal reduced to only 699.08(for 10 months) though i paid an amount 1379 every month.

As and when the DIRECT DEBIT was unpaid (due to insufficient funds) , they have put as due amount in debit column and added this amount to the principal. after i got remainder from bank , i have sent a immd cheque and due is cleared for current month after few days.

This has happened for 3 or four months and i paid each installment during the last week of the that month and so on.

Is that bank charging the amount is legitamate

can anyone pl clarify me

here is the statment
------------------------------------------------------------
Date---description-----------debit----credit------balance
-------------------------------------------------------------
31Jan--Lending rate 5.340 %
31Jan--Repayment dd---------------------1371.03------210599.00
31Jan--Interest----------------961.17------------------211560.17
22Feb--Rate Change to 5.44%-------------
29Feb--Repayment DD---------------------1379.99-----210180.18
29Feb--Interst-----------------902.03-----------------211082.21
31Mar--Repayment dd---------------------1379.99-----209702.22
31Mar--Interst-----------------975.05-----------------210677.27
07Apr--First unpaid dd---------1379.99-----------------212057.26
15Apr--repayment------------------------1379.99------210677.27
30Apr--interst-----------------945.08------------------211622.35
06May--repayment dd---------------------1378.11------210244.24
value Date 4/05/2008--------------------------
12May--first unpaid-----------1378.11-------------------211622.35
19May--repersenteed dd------------------1378.11-------210244.24
Value Date 17/05/2008----
22May--further unpaid----------1378.11-----------------211622.35
28May--repayment-------------------------1379.99-----210242.36
30May--interest----------------976.93------------------211219.29
05Jun--repayment dd----------------------1378.11------209841.18
12un---first unpaid dd----------1378.11-----------------211219.29
17Jun--represented dd--------------------1378.11------209841.18
20Jun--further unpaid----------1378.11-----------------211219.29
26jun--repayment-------------------------1378.11------209841.18
30jun--intersest---------------943.38------------------210784.56
23jul--repayment-------------------------1378.11------209406.45
31Jul--interst-----------------972.04-------------------210378.49
11aug--rate change to 5.790%-------------------------
29aug--interest----------------1014.37-----------------211392.86
01sep--repayment-------------------------1492.94-----209899.92
01sep--captial repayment-----------------210000.00--- 100.98cr
 
I think you might need to ring the bank it looks like some of your direct debit payments were reversed.

What are these transactions


31Mar--Repayment dd---------------------1379.99-----209702.22
31Mar--Interst-----------------975.05-----------------210677.27
07Apr--First unpaid dd---------1379.99-----------------212057.26

06May--repayment dd---------------------1378.11------210244.24
12May--first unpaid-----------1378.11-------------------211622.35

19May--repersenteed dd------------------1378.11-------210244.24
22May--further unpaid----------1378.11-----------------211622.35

05Jun--repayment dd----------------------1378.11------209841.18
12un---first unpaid dd----------1378.11-----------------211219.29

17Jun--represented dd--------------------1378.11------209841.18
20Jun--further unpaid----------1378.11-----------------211219.29
Click to expand...
 
Yes, as Thomas said they've reversed the payments. Instead of leaving the balance unchanged when you missed a DD they've added the amount you missed to the total sum owing. That's outrageous. Contact them urgently.
 
Presumeably the debit amounts are in respect of the payments which didnt actually go through when presented / represented by the mortgage providor. They originally posted the repayments as being received when due but when the payment did not go through they reversed it accordingly. The capital outstanding was reduced when you subsequently send the repayment to them.

Before your first repayment in the table you posted you owed the bank €211,970 at the beginning of the year (€210,599 + repayment on 31 Jan of €1371). The final amount outstanding at the end was €209,899. The capital repayments during the year were €211,970 - €209,899 = €2,071

It does appear that you repaid €210,000 and should therefore have been repaid the credit amount at the end of €101.
 
Deb___ said:
Yes, as Thomas said they've reversed the payments. Instead of leaving the balance unchanged when you missed a DD they've added the amount you missed to the total sum owing. That's outrageous.
Click to expand...

If that was the case then he'd own 5k more at the end of the 8 month period.
 
ragdublin said:
I have switched mortgate provider recently and requested my old mortgage bank to provide me statement up untill closing date.(year 2008).

Looking at the statement for 2008, noted begining balance (eur 210,599.00) and the end balance (209899.92). it is really strange that the prinicipal reduced to only 699.08(for 10 months) though i paid an amount 1379 every month.

As and when the DIRECT DEBIT was unpaid (due to insufficient funds) , they have put as due amount in debit column and added this amount to the principal. after i got remainder from bank , i have sent a immd cheque and due is cleared for current month after few days.

This has happened for 3 or four months and i paid each installment during the last week of the that month and so on.

Is that bank charging the amount is legitamate

can anyone pl clarify me

here is the statment
------------------------------------------------------------
Date---description-----------debit----credit------balance
-------------------------------------------------------------
31Jan--Lending rate 5.340 %
31Jan--Repayment dd---------------------1371.03------210599.00
31Jan--Interest----------------961.17------------------211560.17
22Feb--Rate Change to 5.44%-------------
29Feb--Repayment DD---------------------1379.99-----210180.18
29Feb--Interst-----------------902.03-----------------211082.21
31Mar--Repayment dd---------------------1379.99-----209702.22
31Mar--Interst-----------------975.05-----------------210677.27
07Apr--First unpaid dd---------1379.99-----------------212057.26
15Apr--repayment------------------------1379.99------210677.27
30Apr--interst-----------------945.08------------------211622.35
06May--repayment dd---------------------1378.11------210244.24
value Date 4/05/2008--------------------------
12May--first unpaid-----------1378.11-------------------211622.35
19May--repersenteed dd------------------1378.11-------210244.24
Value Date 17/05/2008----
22May--further unpaid----------1378.11-----------------211622.35
28May--repayment-------------------------1379.99-----210242.36
30May--interest----------------976.93------------------211219.29
05Jun--repayment dd----------------------1378.11------209841.18
12un---first unpaid dd----------1378.11-----------------211219.29
17Jun--represented dd--------------------1378.11------209841.18
20Jun--further unpaid----------1378.11-----------------211219.29
26jun--repayment-------------------------1378.11------209841.18
30jun--intersest---------------943.38------------------210784.56
23jul--repayment-------------------------1378.11------209406.45
31Jul--interst-----------------972.04-------------------210378.49
11aug--rate change to 5.790%-------------------------
29aug--interest----------------1014.37-----------------211392.86
01sep--repayment-------------------------1492.94-----209899.92
01sep--captial repayment-----------------210000.00--- 100.98cr
Click to expand...

You have to look at this from the 1st Feb when you owed €211,560.17(A), interest up to 29Th Aug is €6728.88(B), you made six repayments totalling €8389.13(C).

A+B-C= €209,899.92, you then made a capital repayment of €210,000, leaving a credit balance of €100.98. Your statement is correct.

The principal has dropped by €1660.25 in 7months.
 
Last edited:
thanks Thomas22,rmelly Panacea , Deb___, for your reply.. whenever DD is unpaid due to insufficient funds, the bank debit(add) this payment to the outstanding balance. is this correct ?
i have called to the bank they said there is no wrong in the statement at all and it seems that i am not convinced at all with this..

As i look back last year statement, the prinicipal reduced around 3000 euro approoximately for 8 months..

do i have to approach any financial adviser to seek further clarification.
 
31Mar--Repayment dd---------------------1379.99-----209702.22
31Mar--Interst-----------------975.05-----------------210677.27
07Apr--First unpaid dd---------1379.99-----------------212057.26

06May--repayment dd---------------------1378.11------210244.24
12May--first unpaid-----------1378.11-------------------211622.35

19May--repersenteed dd------------------1378.11-------210244.24
22May--further unpaid----------1378.11-----------------211622.35

05Jun--repayment dd----------------------1378.11------209841.18
12un---first unpaid dd----------1378.11-----------------211219.29

17Jun--represented dd--------------------1378.11------209841.18
20Jun--further unpaid----------1378.11-----------------211219.29


thomas thease are DD was returned due to insufficient funds and sebsequently i have sent a cheque later date
 
I prepared a massive response to your post and then some glitch on the site/laptop caused it to disappear so I'm going to paraphrase the main points.

You had 7 successful payment over the term shown on your mortgage statement. I'm linking them on your statement to show how these can be accounted and how, despite your last post stating that you had paid by cheques after every unpaid DD - the mortgage co does not agree. You should cross ref against your current account statement and also check that relevant cheque nos of cheques sent to meet any unpaid dd are fully accounted for, and if not follow up with mortgage co with this info to hand, or cancel any uncashed cheques asap. Here goes (note: 31 Jan payment I'm calling Feb payment and 29 Feb payment March payment as initial dd presentation dates aren't consistent and are easier to track this way!) Have also deleted any interest applied and rate change info as confuses the issue!

------------------------------------------------------------
Date---description-----------debit----credit------balance
-------------------------------------------------------------
Feb
31Jan--Repayment dd---------------------1371.03------210599.00

Mar
29Feb--Repayment DD---------------------1379.99-----210180.18

Apr
31Mar--Repayment dd---------------------1379.99-----209702.22
07Apr--First unpaid dd---------1379.99-----------------212057.26
15Apr--repayment------------------------1379.99------210677.27

May
06May--repayment dd---------------------1378.11-----210244.24
12May--first unpaid-----------1378.11------------------211622.35
19May--represented dd------------------1378.11-------210244.24
22May--further unpaid--------1378.11------------------211622.35
28May--repayment------------------------ 1379.99-----210242.36

Jun
05Jun--repayment dd----------------------1378.11-----209841.18
12Jun---first unpaid dd--------1378.11------------------211219.29
17Jun--represented dd--------------------1378.11------209841.18
20Jun--further unpaid----------1378.11-----------------211219.29
26Jun--repayment------------------------1378.11------209841.18

Jul
23Jul--repayment-------------------------1378.11------209406.45

Aug/Sep
01sep--repayment----------------------1492.94-----209899.92

Check especially which month payment at 1 Sept refers - if it is Sept, it may indicate that a cheque for Aug went missing and you should cancel it immediately. Also check your ICB report in case the missed Aug payment, if applicable, has been reported to them and seek to alter accordingly if it has.

Hope this helps!
 
Last edited:
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