Scarborough BS and Skipton Mortgage DD rip off

andrewmp

Robert_Sterling wrote: »

I one hundred percent agree with Sloughflint..

Why? Even you and your maths brain can't produce anything to prove it is fair yet you 100% agree with someone who says it is fair....

Robert_Sterling_3

The reasons our maths brains cannot produce anything conclusive is because we do not have enough information to go on.

That is what I was agreeing with 100%.

silvercar

Someone with the terms and conditions of the original mortgage needs to do a calculation of all the options available. You have to consider the negatives (paying in advance and the interest on any missed payment) against the positives (paying every payment 3 days later than currently) with and without taking the option of not making a 12th payment in this year.

andrewmp

silvercar wrote: »

Someone with the terms and conditions of the original mortgage needs to do a calculation of all the options available. You have to consider the negatives (paying in advance and the interest on any missed payment) against the positives (paying every payment 3 days later than currently) with and without taking the option of not making a 12th payment in this year.

All I need to consider is my mortgage payment has gone up each month, no fault of my own. Why should I be out of pocket for something they have changed?

andrewmp

sloughflint wrote: »

As I said before, people need to concentrate on total interest payable under the old system and the new system and ensure that the difference is nil. Calculations need to be made once the end of term date is established.

Paying nothing at all in March would certainly have some impact on interest as I have repeatedly explained.

If the product is as flexible as you say regarding overpayments, then the matter can soon be re-balanced once there is a clear understanding of all that is involved.

It is a pity that you are using this thread to rant when people unaffected by the changes have put thought into the issues.

The difference will be over £1000 to me.

The product allows up to 10% overpayments every year. If I pay £25 (three days interest) it will not put me back where I was as they're adding £369 to the loan and moving the finish day forward by 27 days (I presume this as they haven't confirmed this anywhere).

I'm not sure how making a payment three days later is a positive, nor how making one payment less this year (which is simply payable three days later on the 1st January) is positive.

It's a pity you are being condescending to those who are out of pocket by the greed of a mutual. I don't see how their greed benefits anyone.

andrewmp

sloughflint wrote: »

No, what you need to consider is the total interest.
Unless you have been given a breakdown (but you say that nothing has been explained yet0, you may not know how many payments are remaining or how much the last payment will be.
How did you reach a figure of £1000?

£2.84 per month = £34.08

I have 29.5 years remaining so £36 * 29.5 = £1005

Even if I end up with one less payment (which I suspect I might) then that is still £636 I'm out of pocket because of their decision to merge with another mutual. When I do get my statement through (eventually) you will see that I will be paying £636 more than I would have done if there wasn't a merge.

andrewmp

sloughflint wrote: »

If that is your interpretation,I have no further interest in wasting my time attempting to help you.

I have never asked for your help. I understand the situation. Skipton take payments in advance, if I was always a Skipton customer I would have paid my first mortgage payment a month earlier.

I took the mortgage out with Scarborough, they take payments in arrears, now that they're merging with Skipton payments will be taken in advance. This means what would have been our 28th of March payment is now seen as a "payment holiday" and we're paying our normal April payment on the 1st of April (instead of the 28th April).

They think this is fair because we didn't have to pay a mortgage payment in March therefore we're "better off". What they fail to realise is people get paid monthly and they are still seeing a mortgage payment coming out of that month's pay packet so they're no better off.

If the option was there to pay three days worth of interest and leave my payments at the same amount then that would be fair enough. The only option they are giving, to keep payments the same, is to pay a double mortgage payment out of this month's pay - why should we, even if we could afford to.

I took out my mortgage six months ago. £61,000 over 30 years at 6.09%, this gave me a payment of £369.26 per month. If I had taken out the same loan over 29 years and six months it would have cost me £371.47

My new payment is £372.10, surely I should be paying off my mortgage in less than 29 years and six months but NO, not with the way Skipton work things out. They are stealing money from me and I'm not happy. I wish I took out a loan with a company who were not going to merge and change the length of my loan and payment amount!

Using egg's excellent mortgage calculator, I have put in my details and added one month's payment break, this makes my new payment £371.50, still less than what I have to pay them. How can this be at all fair?

http://new.egg.com/visitor/0,2388,3_54988--View_1028,00.html

Robert_Sterling_3

I will "assume that you have been robbed"

I do not know that you have been robbed.

The £1005 is not a present day value

It is a once a month stream of 354 payments of £2.84

I guess it has about the same value as a monthly payment today.

I also guess that you make only 353 further payments.

So although I will assume that you have been robbed I will claim the magnitude of the haul is not £1005.

I will, for the time being, guess that the robbery is of the magnitude of one installment.

andrewmp

sloughflint wrote: »

Curiosity got the better of me.I used a crude online amortization table.

Mortgage of 61k taken over 360 months.
Monthly payment of £ 369.26
If no payment made on 28/3,total interest charged over the term £ 71934.64, total payments £ 132 934.64

Assuming 5 payments already made ( 28/10 to 28/2), total interest paid to date £ 1544.83

Balance remaining on 28/2 is 60 698
Interest accrued to 28/3 is say a further £ 308
add on £ 30 for 3 days interest to first April

Total outstanding balance on first April £ 61 036.
This amount is remortgaged with new lender on this day and payments start immediately for 354 months ( £370.52)
Total interest payable £70 126.34, total payments £131 162.34

Combined interest 70126.34+ 1544.83= £71 671.17

a difference of 71 934.64-71 671.17 = £263.47 less interest.

Above cannot be used for accuracy since we don’t know how the lender calculates the interest but it gives some idea.

People shouldn’t concentrate on the monthly amounts but rather the total interest payable for all options and request proper breakdowns.

I don't understand why/how I should owe £36 more now than at the start of my mortgage, six months ago? I know a lot of the early payments are interest and I didn't expect it to go down much but why has it gone up??

Also my new payments are £372.10 not £370.52 as per your calculations. Either way, I'm being robbed.

andrewmp

sloughflint wrote: »

Because of the non payment in March.

Which I'm paying in April! 3 days late, why are you adding on one month and three day's interest? Why should I be punished to the tune of over £1000 because of their change of payment date?

What if they get taken over again, but this time the new company wants to take payment on the 2nd of the month, will I then "miss" another payment and be charged again? I agreed to pay a set amount each month, I have kept to my end of the bargain, there should be no reason why I have been set back six months and more because of them!