I have a mortgage with Kensington. When it fell into arrears they applied a management charge. £100 per month. I am paying off £150 but in effect by the time they charge the extra interest....plus their management charge....im paying pennies of the arrears. Is this legal or unfair contract. Its seems to me a workround for dual interest rates. They also like to phone you each month to "make sure all is ok". for which they charge approx £20!!!!

-- Dave McLaughlin (Dave@macker15.f9.co.uk), June 12, 2001

Answers

You should check the small print within your mortgage agreement. Lots of lenders, and not just mortgage lenders, apply heavy charges when you fall into arrears. Just look at what banks charge ordinary current account customers when they go overdrawn without asking!

If they telephone you each month asking if "all is okay", then why not ask them to stop calling? Tell them that its not helping your arrears situation that they charge you for a phone call you don't want.

If you feel that your contract with Kensington is unfair, then take a look at the information on this website and also see a solicitor, they'll be the best people to advise you.

-- pendle (pendle@amun-ra.demon.co.uk), June 12, 2001.