MSE News: Thousands of Santander mortgage holders could get payouts after blunder

Two_steps_forward... wrote: »

I believe their failure to notify was deliberate, not a clerical error.

They certainly did not write to me in November 2008. I would have noticed!

April 2007 bought property on interest only 5 year fixed deal - think I have all paperwork re cap etc.

Went onto SVR once rate ended as couldnt remortgage but SVR was much higher than BOE Base rate and the amount their paperwork stated when I signed up.

I have never had any correspondence other than the one last year about increasing the SVR above what they had agreed ....but tough essentially.

Will I be able to claim?

I would also like to know why in this day and age it is taking them a full working week to process my monthlycapital repayment as I am losing a weeks interest benefit every time - outrageous!

Can anyone advise/help.....?

Two_steps_forward... wrote: »

and here's me looking for 34 grand!

HOW MUCH? :eek::eek::eek:

Well, good luck with that and, if you do get it, don't forget your old mate ceegee.:rotfl:

ceegee wrote: »

Blimey!

I received a letter today, reference number M014, which left me totally bewildered, so I came here to see if there was a thread about it!

I have waded through the entire thread but am still bewildered. My mortgage was paid off in July 2010 and it was in quite a few parts as I'd had further advances for vital house repairs.

All parts were on the same terms.......a discounted rate followed by being put onto the SVR which was subject to the ERC.

I am affected and affected, according to the letter......

"When we increased the Cap Margin in December 2008, all or part of your mortgage was on an SVR linked product which was subject to an ERC. We should have told you that you were entitled to exit this part of the mortgage without paying the ERC for a period of three months after the Cap Marginincrease between 15th December 2008 and 15th March 2009. Your payments were higher than they would have been had we not increased the Cap Margin.

"We have considered the information available to us about your credit history and the outstanding mortgage balance as a percentage of the value of your property at the time of the Cap Margin increase. Based on this information, we have compared the mortgage rate that you were paying at that time against other mortgage rates available to you in the market. As a result, if you had known you could have switched without paying an ERC, we have identified that you may have been able to obtain a more competitive mortgage by switching to another lender during the three month ERC free period if you had wanted to."

Well, what should I do? Are they basically saying that they overcharged me?

Could someone kindly shed some light on this, as I am so confused!

Hi

I have a letter with the code M015.

I do not have the paperwork on my different mortgage loans from that period but phoned them up and requested they send it to me. That was a week ago and I’m still waiting !



[FONT=&quot]I took out a loan for home improvements a few months before December 2008, paying interest only on it, and had to go on their SVR because the original part of the Mortgage was tied in on a discounted SVR until 2010. I would definitely have looked around if I had a way out of the SVR discounted part in Dec 2008. I only went 'interest only' so as I could immediately get a new mortgage for the whole of the loan as soon as the SVR discounted part finished. Which if I was told about the ERC get-out, could have occurred not long after I took out the extra loan. I was also unaware at the time (that is to say that they did not make this clear over the telephone to me when I took it out) that the extra loan I took out as interest only was not on the standard SVR but a very slightly discounted one which meant when I moved mortgages in 2010 – when the original discounted SVR one finished – I had to pay some exit fees (I think it was about £400+). I should have argued about this at the time but to be honest I was just glad to be away from Santander and their abysmal customer service.[/FONT]
Like Ceegee I received a letter with the following :-
"When we increased the Cap Margin in December 2008, all or part of your mortgage was on an SVR linked product which was subject to an ERC. We should have told you that you were entitled to exit this part of the mortgage without paying the ERC for a period of three months after the Cap Marginincrease between 15th December 2008 and 15th March 2009. Your payments were higher than they would have been had we not increased the Cap Margin.
At that time you may have been able to switch to another lender without paying an ERC on the part of your mortgage affected by the cap margin.
If any part of your mortgage was also on a fixed or tracker rate and was still subject to an ERC, from the point it reverted to our SVR you would have been entitled to another three month period on that part of your mortgage.
We have considered the information available to us about your credit history and the outstanding mortgage balance as a percentage of the value of your property at the time of the Cap Margin increase. Based on this information, we have compared the mortgage rate that you were paying at that time against other mortgage rates available to you in the market. As a result, if you had known you could have switched without paying an ERC, we have identified that you may have been able to obtain a more competitive mortgage by switching to another lender during the three month ERC free period if you had wanted to."


[FONT=&quot]I switched my mortgage to another provider in 2010 and got a lifetime tracker of BoE base rate + 1.99%. But in 2008 if they had offered me the ERC get-out I could have at the time got a lifetime tracker with either the Woolwich or HSBC of the BoE base rate + 0.99%.[/FONT]
[FONT=&quot]So not only have they cost me money by overpaying mortgage fees and interest between 2008 and 2010 but also the difference between 0.99% and 1.99% over the remaining period of my mortgage. That sounds like a hell of a lot of money they have cost me![/FONT]
[FONT=&quot]I hope this has all made sense ?[/FONT]

Two_steps_forward... wrote: »

Finally got the Youtube video to play, David Olias is attempting to prove that because the SVR and the cap margin are directly related he was affected by the lack of notification of the cap margin increase, as if he had known it would have indicated to him that Santander were likely to increase the SVR as this was the sole purpose in increasing the cap margin.

His mortgage is I think subject to the 2007 T&Cs so he has some way to go with this. I believe he is an ex trader in the equities divisions of major banks so he should know his stuff.

http://www.youtube.com/watch?v=WRwXE1t38u8

do you think we could contact him?