Scarborough BS and Skipton Mortgage DD rip off

fineanddandy

Well, whilst waiting for an illustration of how much it is going to cost me, I have taken delivery from the Scarboro as to my new monthly DD, and it has gone up from £301.62 a month to £310.24 a month.

Bearing in mind i have 'missed' the March payment of £310.62 which i will take off, I will pay roughly an extra £824 in interest over the remaining 125 months left.

Any of you guys still think that is a mountain out of a molehill?

fineanddandy

sloughflint wrote: »

I never suggested it was a mountain of a molehill, fineanddandy.

I did say that if you did not pay the three days interest, the knock on effect over the rest of the term would be greater than the £60 interest difference ( in my example).

I gave you a solution: calculate the three days interest and pay that before March 28th.

But as I said previously Sloughflint..The Scarboro wont accept that solution.

fineanddandy

sloughflint wrote: »

I cannot see how they could refuse. Was this simply a CSA over the phone? I've had dealings with clueless CSAs over savings products. Could it be the case here too?

To me it is simple unless I am missing a fundamental fact. If it is an inflexible product that doesn't allow overpayments then this is a golden opportunity to overpay.

They are accepting cheques this month. I can't believe they would refuse to cash in a cheque for anything less than your £ 301.62.
I would send in a cheque for three days interest (or more if affordable) before the 28th and then pursue the matter in writing.

Good luck.

Thanks Sloughflint..Well, I am currently going through the Complaints procedure which has included a written letter asking for an illustration, as I am determined not to be out of pocket by 1p as a result of this fiasco, and if need be I will go to the Ombudsmen...at the moment though, it has gone to the Scarboro and Skipton legal department... i imagine to see if they can do this within the T&C's.

andrewmp

Robert_Sterling wrote: »

The additional interest is negligible.

If we assume that the Monthly Payment is £1,000 per month and that the interest rate is 5% then the additional interest would be about 42 pence for the 3 days
i.e. about 14p per day.

There is also an opportunity to make a payment, e.g. £1, in March, to prevent this tradgedy occuring at all and in fact reducing the mortgage.

Well it hasn't worked out like that. For my three days "late" payment I now have the privilige of paying £3 per month extra for the next 30 years!! This is on a £60k mortgage.

andrewmp

Robert_Sterling wrote: »

If anyone wants to they can pay an additional £5 in march.

The offer gives a number of options.

A mountain is being made out of a molehill here and that being the case from now on I will make no further comment in this thread.

adieu.

Rubbish, I have to pay an extra £3 per month for the next 30 years. It is costing me over £1000 for having my payment date moved back 3 days!!

andrewmp

gizmo111 wrote: »

Assuming yoi get paid 31 March - you already have money to pay the 28 March payment, the 01 April will come out of your 31 March pay, and then the 01 May payment will come out of 30 April pay?

I can't see how changing it by 3 days makes you miss a whole months payment - you must have budgeted for 12 payments not 11?

I don't get this. I get paid on the 21st every month. Instead of my payment coming out on the 28th, it is coming out 3 days later. I'm still paying 1 months mortgage from my monthly pay packet yet it is costing me over £1000. I'm tied in with the for 10 years or I'd be off like a shot now! I don't see how they can get away with this by law.

andrewmp

Marc1978 wrote: »

There isn't a 1st of March payment or a 28th March payment. That payment has been moved to 1st April.

The additional payment needed is the extra interest for the 3 extra days the money is owed. This shouldn't be too much, 42p was given as an example in a previous post. In 2009 the OP will only make 11 payments but on Jan 1st 2010 they would have made 12 payments. The mortgage will be running 3 days later than previously.

Rubbish, it runs 27 days earlier than usual, no option is given to move it back three days and pay a few pence. If that option existed I would jump all over it.

andrewmp

MarkyMarkD wrote: »

The terms of this were in the merger document, which was approved by the FSA.

I think you are deluded if you think the FSA will reverse their own decision.

Whoever someone spoke to at the FSA wouldn't have known the background to this and has given an off the cuff "put it in writing and we'll consider it" answer. They won't do anything.

The impact if you accept the option of "missing" a month is that you pay every payment 3 days later forever. That will cost around £120 like I've calculated before. It's a pretty trivial amount and will mean you can earn more interest elsewhere, because you are paying 3 days later.

And it's only £120 if you are going to stay with Skipton for 25 years. How many people really are?

Proposals like letting you have one payment interest free forever are, to be honest, silly. You owe them the money, so interest is due on it under the terms of your mortgage.

Claims in earlier posts that you are getting charged interest on one month's payment extra, for the remaining life of the mortgage, are wrong, because Skipton charge interest daily. You are getting charged interest on one month's payment for an extra 3 days each month, which is around 1/10th of a year, which is around 0.5% (at 5% pa interest) of 1 month's payment.

So if you pay £1,000 a month at 5%, it will cost you £1,000 x 0.5% = £5 a year extra. And multiply that by 25 years and you get to £125.

If you are really getting all upset over £5 a year - which you can offset against the interest you can earn elsewhere for that 3 days each month - you need to get out more, not start complaining to the FSA simply because you cannot do the maths.

You are wrong. I'm getting "upset" at over £1000 spread over 30 years for "missing" a payment (which is taken three days later). At least !!!!!! Turpin wore a mask.

andrewmp

MarkyMarkD wrote: »

I'm glad that there are at least two other people on this thread who have a degree of intelligence and are actually listening rather than ranting.

An essential point has just come out in the last few posts.

The thing which seems to be completely beyond those who are ranting is the fact that you are only paying, every month forever and ever amen, 3 days late.

Wrong!! We are being told we have to pay 27 days earlier or be seen as making a "missed payment". Adding over £1000 to the total cost of the loan (over 30 years). Nice of them.

fineanddandy

andrewmp wrote: »

You are wrong. I'm getting "upset" at over £1000 spread over 30 years for "missing" a payment (which is taken three days later). At least !!!!!! Turpin wore a mask.

Andrew, all you can do at the moment is what I and others have done, and instigate the complaints procedure, and put it in writing too, and wait on the response..and if after that, if your not satisfied go to the Ombudsman.

Though I agree, it feels as though we have been mugged, and the FSA are nowhere to be seen!