Jump to content

Welcome to the Sorted community forum! Please read our house rules and help us keep this a safe space to talk money.

Jaed

Someone Mortgage Savvy Please Help!

Recommended Posts

Hello.  After seven and a half years of battling EQC, Fletchers and my insurers, five of those years in litigation, which was costly, I came to a settlement agreement, enabling me to reinstate my home after the 2010 plus earthquakes. Unfortunately, ANZ decided that they suddenly had 'interest in the property' (where have they been for the past seven years?) and through NO CHOICE, I had to pay back my two mortgages, which leaves us now in an uninsured home, near a fault-line, where the township has flooded, and no way of reinstating our home.  As my husband has a permanent injury, they kindly informed us that we did not fit the lending criteria either for another mortgage.  Yes I am pursuing the breach of contract. HOWEVER, what I want to know is, after paying 12 years of mortgage how much money have I lost by paying on a 30 year loan?  I know I have lost 12 years, but how can you put a dollar figure on this?  I really need some help :(

Edited by Jaed
spelling errors

Share this post


Link to post
Share on other sites

Hi @Jaed, so sorry to hear about your situation. It must be tough. For the most accurate financial data on how much you paid in interest on your loan over those 30 years, the best thing you can do is ring your bank, ANZ, and ask for it directly from them. Wish you all the best. 

Share this post


Link to post
Share on other sites

Hi Emily. Thank you for your reply. However, it has taken this long to get my mortgage details. They somehow seemed to have lost it, destroyed it Ahhh found it now that I have threatened to go to the ombudsman. QUESTION! If you pay your mortgage off weekly, and you are on a 5 year fixed rate, would the interest charges fluctuate? I wish I had done accounting at school... But anyway, it is doing my head in. The bank says I am charged yearly, but the monthly charges are all over the place. I did call once and was told that I was charged daily... So which is it? It seems to me that if that was the case then these calculators would be useless if a daily charge was in place... 

Share this post


Link to post
Share on other sites

Hi Jaed, interest on a mortgage is typically calculated daily – a non-stop ticker in the background that goes on for as long as we take to repay. When we make a scheduled payment, we’re charged however much has built up to that point.

We could look at calculating how much interest you've paid in those 12 years, but only if we had your repayment history and the terms of the loan during that time. (A 30-year loan means much of your payments went to interest.)

So much easier to get this from your bank; hope you make some headway there!

Best, Tom

Share this post


Link to post
Share on other sites

Hi Tom and thank you for your reply.  I am getting somewhere in unraveling (I think).

Primary mortgage = $145,000 in 2006.

Payments made over twelve years incl. interest = $144,000.  

Settlement day and a further $119, 814. 96 was 'taken' making the full amount paid to ANZ for our $145,000 loan was $263,000.00. 

This is the full amount that ANZ has received.

$263,000.00 minus the primary initial loan of $145,000 means that we have paid $118,000 in INTEREST over twelve years.

Using the sorted mortgage calculator - based on a medium interest rate of 6%p.a - the interest charges over twelve years would be $58,758.00 so how can the bank justify it's amounts when it came to taking our settlement figure? 

Have we not been charged interest for 30 years on a loan that lasted only 12?

Surely the correct thing to have done, would have been to recalculate over twelve years (before breaching their loan contract...) 

PLEASE ADVISE???

Share this post


Link to post
Share on other sites

Hi Jaed, yes, it would make sense that you were charged interest for those 12 years, while the loan was on a 30-year term as you've said. Which unfortunately brings us back to the lender for an explanation. Any answers?

Cheers,

Tom

Share this post


Link to post
Share on other sites

Hi Tom. I have been going back and forth with my complaint for 3 months now. I have requested compensation and the bank want to know how much. I need to work out a fair and reasonable amount - bearing in mind that they will not pay anyway. I am going to calculate all my costs during the litigation process and request the bank pay half, since they benefited mostly financially. But I have absolutely no clue as to what to do home wise. It's very cold and damp and to repair a 100 year earthquake and flood damaged home is impossible. It can't be lifted because of the flood damage and the foundations are cracked. We lost our floor coverings in the flood and only have cheap carpet with no underlay. The QV has been increased by $60,000 and the council are ignoring my request for a revaluation. The real estate agent has said my house is only worth land value if I sell as is... It's a really really bad situation and I don't sleep at the moment. I have basically lost my home and all the money that went into it and I don't know what to do! 

Share this post


Link to post
Share on other sites

Hi Jaed, do you have someone in your corner for this fight? A lawyer, financial adviser, money mentor? It really sounds like you could use a safe pair of hands as you to and fro with your bank. You might try calling 0508 BUDGET to start, and they should help you with your interest calculations. In that regard, in the early years of a mortgage you typically mostly interest and little principal, which is perhaps why your calculation of the interest over 12 years is coming up short.

Best,

Tom

Share this post


Link to post
Share on other sites

Hi Jaed,

First of sorry you have had to go through all of this. Firstly, I would recommend also talk to ACC if your husband has a permanent injury and your house is not suitable for his needs, they may be able to help a little with making it a little more comfortable. A friend of mine had quicker help from ACC after damage to her home for her disabled son than the bank.secondly, have a look at this article which was in the NZ herald about banks including "ANZ https://www.nzherald.co.nz/personal-finance/news/article.cfm?c_id=12&objectid=10708833.

Finally, I would recommend not to keep it quiet and talk online only. Contact FairGo and let the whole nation know about it. Who knows there may be others in your position and may want to team up.

good luck and keep fighting. Its your hard earned money not theirs.

  • Like 1

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×