Scarborough BS and Skipton Mortgage DD rip off

fineanddandy

http://www.scarborougheveningnews.co.uk/news/Proposed-building-society-merger-.5095761.jp

Here is a newspaper report about this, rather interesting response, and show exactly how the BS is looking at it.

fineanddandy

http://www.scarborougheveningnews.co.uk/news/Scarborough-Building-Society-Merger-is.5095776.jp

This one is even more depressing!

andrewmp

I don't know how they can say nobody will be worse off. I'll be over £1000 worse off over the term. What a joke. Why can't they just extend the term by three days and charge me about £25 or even add it to the mortgage?

fineanddandy

andrewmp wrote: »

I don't know how they can say nobody will be worse off. I'll be over £1000 worse off over the term. What a joke. Why can't they just extend the term by three days and charge me about £25 or even add it to the mortgage?

It seems it looks like they are comparing it to deferring a payment, which in my opinion is a disgrace, and the FSA thinks it's okay, which is deplorable!

andrewmp

fineanddandy wrote: »

It seems it looks like they are comparing it to deferring a payment, which in my opinion is a disgrace, and the FSA thinks it's okay, which is deplorable!

But I don't want to defer my payment, I'm happy for them to take it on the 28th, the funds are always there then!!

fineanddandy

andrewmp wrote: »

But I don't want to defer my payment, I'm happy for them to take it on the 28th, the funds are always there then!!

My feelings exactly, but because Skipton use an interest daily calculations, which require a 01st date, this is how the BS and the FSA are looking at it, whereas us, the poor customer (and dare I say it MEMBER, who was denied a vote on this, along with the merger) has to fork out £000's for the privilege! I only hope common sense provails..but I'm not hopeful.

Robert_Sterling_3

andrewmp wrote: »

This is costing me £3 per month for the next 29.5 years.

£3 isn't a lot, I agree, but why didn't they just "move our March payment back 3 days, give us the option to pay three days interest (about £25 in my case) and keep our on going payents the same with a mortgage that ends 3 days later? It doesn't take a genius to understand why, £1000 over £25, I wonder which one I'd rather have, time that by even a 1000 customers and you're talking millions!

But does this mean that your mortgage payments terminate 27 days earlier than they would have done.

Letmeiniwannaaskaquestion

I'm glad people are starting to see the rip off as it is, at last.
Is there any way that somebody can get Martin involved in this?

Robert_Sterling_3

I one hundred percent agree with Sloughflint.

At the moment there are too many unknowns.

I had decided to take a virtual case and work though it carefully.

It was whilst doing so that I realised that I , not having a mortgage at all let alone one with the Scarborough and another with the Skipton, was basing my calculation on what knowledge I did have of the Nationwide Building Society.

That is where the trouble began.
I think that Nationwide charges interest each month in advance but allows members to pay by Direct Debit any day not later than the 28th of the month. The only way this makes sense is if the monthly payment is added to the outstanding capital balance on the first day of each month.
Thus you might say that the vast majority of members make authourised late payments each month.

So I now say that :-

I do not have the full terms and conditions of an existing Scarborough Mortgage.
I do not have the full terms and conditions of an existing Skipton Mortgage.
I do not have the full terms and conditions of a replacement for a Scarborough Mortgage by the Skipton.

I do not have any reason to think that the treatment of Scarborough mambers is in anyway unfair but I am aware that this is not the view of some Scarborough members.

For that reason I have edited out most my contributions to this thread.

andrewmp

sloughflint wrote: »

At the moment there are too many unknowns.

1) I'm not sure if they are really refusing people paying the three days interest. Has anyone had a cheque for a lesser than usual monthly amount returned yet? This is the sticking point on whether the lender is being unfair or not,I believe.

2) It is also unclear if the term has been shortened or not. If it is shorter, there will be one less monthly payment on the end.

Whilst the payments have gone up, the figures you all need to get hold of are the total interest payable for the term under the old scheme ( paperwork from when the product was taken out?) and compare this with the combination of total interest payable up to 28/02/09 and future total interest payable under the new scheme without a March payment (option 3).

I still maintain that the issue will be a three day interest on the February balance accumulated over the rest of the term. Borrowing an extra £ 60 ( my earlier example) over 30 years is not insignificant.
I would send in a cheque for this amount as a minimum. If nothing is sent in at all, then people are agreeing to borrowing that interest over the remaining term and there is less room to complain IMO.

Tell me how three days interest on £60,000 is making my total mortgage payable go up by over £1000?

Three days interest is probably closer to £25, obviously interest compounded on this over time will add up but not as much as £1000 surely? If the £1000 is simply the compounded interest on £25 then it's not a problem as the product allows overpayments at any time. I'll simply make a £25 payment extra ASAP. I suspect this will not result in my payment going down to the AGREED level though.

I think the only way to get it back to normal is to pay two mortgage payments rather than one this month as the extra £1000 obviously comes from £369 being added to the loan because of my so called missed payment (paid three days later than usual).

They've moved from collecting in advance from arrears. Why do you think it is fair for them to charge me over £1000 for this?