Mortgage company charging £5,700 for £2,095 of arrears - anything I can do?

[ASecretLemonadeDrinker]

DH had problems with getting paid about a year ago and we missed just over 2 months of mortgage payments. Nothing has been missed in over a year and we were aware we were getting a fee of £75 a month for the arrears but we planned to get the lump sum and pay it off. Our yearly statement came through and they have given us fees of £3,600 for £2,095 arrears We have offered the arrears money with the hope we could do a deal on the rest but they aren't budging. I understand getting in arrears is unacceptable but this seems to totally be taking the piss. DO you think there is anything that can be done? Worth going to CAB? Thankyou

Who is it with????

So you will be paying over 5k for a 2k debt - that is completely unacceptable. I would go to CAB for advice - also look on the DEBT FORUM part of www.debtquestions.co.uk for advice.

Frankly I would be going all the way to the Financial Ombudsman with this one. How about contacting the woman in the sunday Times who sorts out finance stuff as well.

Rooftop Who through mucho googling appear to have gone bust anyway -thought they would be glad for any money! It was a self cert. mortgage but still this seems to totally take the mick. I will definatly take this further then - £3,600 is a hell of alot of money.

Also, while this is going on shall I pay the arrears? Or hold the money back as a bargaining tool? Thanks

May be worth posting on moneysavingexpert as well. There are some real pros on that forum.

Definately go as far as you can with complaint. FSA. It really does seems like unfair charges.

Also try www.consumeractiongroup.co.uk. Very good advice on all aspects of debt.