OMG!! BS major mortg C$*k Up

Newbird

I'm doing a whole money makeover at the mo, and have signed up to be a MFW. All excited and determined like :j

I got to looking at my mortgage statement...as you do....:money:

BTW - Pls forgive abbreviations, in a hurry, gotta go but wanted to post this now....

Here's the thing...We re-mortgaged apprx 4 yrs ago and added onto our orig loan (as that was only choice to get what we needed to do then.) Orig loan was int only, but when we added to it went over to repayment. Or did we?...that's what I thought we had done...

I noticed on the mort statement it said Int Only and queried this with BS. They said "Dunno what you're on about your mort is def IO.".
We said that aint what we signed up for...they took the best part of the day (after ferreting around at HO) to come back to say...
OOOPs - Yes you did. You are right we are wrong! :mad:

Soooo now we have to convert to repayment - erm... no, I won't be paying a fee for that!

I'm waiting to see what they come up with regarding taking payments off us IO for last 4 yrs, and I've also been OPing too.
WFT? sorry, forgive my lang - but I'm shocked that they can have got it all wrong :eek: and annoyed at myself for not checking sooner as I did just think they had merely classed it wrong on the statement. :rolleyes:

Any ideas how they will sort this? or how they should?

I can play with the calculators for the 2 ways of paying and see what the diff is later, but wondering if anyone has any quick helpful advice, or if anyone has been in this position before???

Newbird

Not happened to anyone else huh?

I've calmed down a bit now...just waiting to see what they come up with.

Hoping that every cloud....n all that...

Ed_Zep

Newbird wrote: »

Not happened to anyone else huh?

I've calmed down a bit now...just waiting to see what they come up with.

Hoping that every cloud....n all that...

Hasn't happened to me but I don't trust them with overpayments, etc.

You've been restrained in that you've not mentioned who the BS are.

Surely, they'll just ask you for the difference of the payments you made and what you would have made and reduce your capital to what it would be.

I'd expect some sort of compensation, though...

Newbird

EZ - Yeh, time will tell, no developments up to now.

A bit complicated to work out as OP and OS figs come into it...

No need to name and shame lender, at the mo, they have always previously been really good to be with.....I'm looking for that silver lining.. or at least a bit shiny anyway..and hopefully then we can all continue with our peaceful mortgage journey. Don't like big waves, I've got enough to do without this. :rolleyes:

dunstonh

They would be expected to put you back in the position you would have been had they done it correctly. That will require you to make up the missing payments and for them to write off the extra interest charged. There will probably be a goodwill gesture in there of £100-£250 ish.

Newbird

Thx DH - Yeh that's what I thought. I'm doing the calcs. you mention for comparison..tho I can't plead poverty over any extra payments due as they can see my OS pot, but I have to look at the OPs that have been made... trying to establish where I would've been with these is what will be debatable...