Unexplained interest added to my mortgage

Discussion in 'Mortgage arrears & negative equity case studies' started by Curious Cat, Feb 3, 2017.

  1. Curious Cat

    Curious Cat Registered User

    Posts:
    14
    I have mortgage arrears and I am in an arrangement with Ulster Bank.I have never missed a payment since entering the agreement.I am due to capitalize arrears and exit within the next two months.I received my annual statement for my mortgage and noticed that an amount of 5228.35 euro had been added in April 16 it is stated that this is Capital debt of forberance.I am paying debit interest every month on the total outstanding balance.Can someone explain what this is please?
     
  2. ClubMan

    ClubMan Frequent Poster

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    43,692
    How have UB explained it to you?
     
  3. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    31,160
    Hi Cat

    Mortgage statements are generally hard to understand. They are made even harder by lenders using short codes for things which explain very little.

    What arrangement did you reach with UB? We would need to know that before attempting an explanation.

    Did they reduce the interest?

    One thing to watch out for is that statement sometimes have two columns, one for the mortgage balance and the other for the arrears balance.

    If this is added to the arrears balance and does not increase the mortgage balance, then there is no need to worry about it. The arrears figure is what is known as a "memorandum" figure. It does not affect any of the calculations.

    Brendan
     
  4. Curious Cat

    Curious Cat Registered User

    Posts:
    14
    Last edited: Feb 11, 2017
    When I asked customer services for an explanation they were unable to do so and told me I would get an answer in the post.To date this hasn't happened.The arrangement I have in place is that the full mortgage has been paid for 9 months and arrears are to be capitalised and added to the monthly mortgage in the next month or two.The statement shows payments in one column and total outstanding balance in the other column.Monthly interest payments are show together with payments made off the capital.This extra 5228.00 was added to the total outstanding balance wiping out more than 4 months payments
     
    Last edited: Feb 11, 2017
  5. Brendan Burgess

    Brendan Burgess Founder

    Posts:
    31,160
    Hi CC

    The expression "capital debt of forbearance" really means nothing. We could only speculate what it means.

    I sent you a PM. If you want to email me a copy of the statement, I will see if anything jumps out. Or you could anonymise it and attach it to a post.

    Brendan