Paying mortgage twice a month

[CP71]

My mortgage was taken over by Mars Capital earlier this year. I have arrears and filled out the SFS etc and they've come back with an alternative repayment plan for 6 months which is about an extra €90 per month. This will bring the monthly payment to €1370. In the letter they said this was commencing from 1st September. As I get paid fortnightly it suits me to make two payments per month of €685. I made the first payment on 4th and the second on the 18th. I also have TRS of €112.50 until the end of 2017 which I told them to offset against the arrears.
They have been ringing and writing to me saying that I haven't adhered to the agreement and I will have to pay the full amount on the 1st of every month. Am I right if I say I'm still paying the full amount and more each month so there shouldn't be an issue? I was hoping after the six months that my arrears will be capitalised.

 

[44brendan]

If you have entered into an Alternative Repayment Arrangement on your mortgage you should have received a formal letter from the company stating the agreed payments and the duration of same. Provided that you have adhered to that repayment schedule you should not be getting any arrears letters or correspondence. Paying monthly or fortnightly is not an issue provided that the payments are made by the due date each month. Normally when such an agreement is reached it includes capitalization of arrears! Do you have a written agreement on the revised repayments?

 

[CP71]

If you have entered into an Alternative Repayment Arrangement on your mortgage you should have received a formal letter from the company stating the agreed payments and the duration of same. Provided that you have adhered to that repayment schedule you should not be getting any arrears letters or correspondence. Paying monthly or fortnightly is not an issue provided that the payments are made by the due date each month. Normally when such an agreement is reached it includes capitalization of arrears! Do you have a written agreement on the revised repayments?

Hi 44brendan

Thanks for your advice. I got a letter saying the amount that they would accept for six months and after that they will look at the arrears amount again. My arrears are €24k and compound interest is also being charged so I cant see that figure changing a whole lot by next February.

 

[44brendan]

A letter is not the same as a formal agreement. However it is an acknowledgement in writing of the amount that they are prepared to accept from you over a 6 month period. In the context of that letter they are in breach of MARP regulations by contacting you re arrears provided that you have adhered to that repayment schedule. Compound interest is standard with all banks as interest is generally charged quarterly to mortgages. Given the low level of information provided by you in your initial post I am unable to comment on whether your mortgage is sustainable or not. Your priority now is to agree a long term solution on this facility and that will largely depend on issues such as amount due, your earnings, other borrowings, value of the property. If you require more relevant information on his issue you will need to complete a money makeover (see http://www.askaboutmoney.com/threads/basic-information-required-for-the-money-makeover-forum.61289/ )