Scarborough BS and Skipton Mortgage DD rip off

andrewmp

sloughflint wrote: »

Try to see the wider picture.
I was not prepared to go into proper maths without all the facts so am settling for a crude online table and using the figures it came up with. 353 payments was closer to your £372.
I made a choice to use 354 payments.
It's a guide to show you that your £1000 is unrealistic.

The granular stuff will come when you complain.

You can't tell yet if you are being robbed.

You think it's fair that I now owe more than I started out oweing despite paying my payments on time as agreed in my mortgage offer?

sloughflint wrote: »

I really don't know how I can explain it to you any better.
You are paying a daily interest on the outstanding balance.

I understand I am paying interest daily, I don't have a problem with that. I just don't understand how I can be in a position where I owe more than I started out owing despite paying on time every month?

I understand how it has happened, thanks to your calculations, but I don't think it is fair that it can happen. I think they should have added three days interest on, not one month and three days like in your example. This would make it fair, I could pay the three days extra interest and my payments would remain the same.

IF they offered me the opportunity to pay the three days interest and move my final payment back three days and keep my payments the same, I'd have no complaints at all. As that option doesn't exist - it stinks.

andrewmp

sloughflint wrote: »

You really don't get it do you? You did owe less on 28/2 after your Feb payment but remember each day after that you were accruing interest again.

I removed all my other posts but I am going to leave these few for others to think about.

I do get it. On the 28th Feb I would have owed less, then on the 28th March I would normally make a payment which covers the interest and a small amount of capital.

This payment is not being missed, it's only being moved back three days, all I should be out of pocket for is the three days between March 28th - April 1st. If I pay the three day's interest I should be in the same position as if the payment date wasn't moved, do you agree?

Rednoseranter

Andrew - they are not moving your March payment forward, they are dragging the April payment you were expecting to make on 28th April to the 1st April. That why they are expecting you to make a payment 28th March and 1st April.

They recognise that this is a bit "off" and so are giving you 3 options - make both payments on both 28th March and 1st April, pay bits of the March payment in stages or miss the March payment completely. If you miss it completely they will add the missed payment to your mortgage balance - and you pay interest on that amount, therefore you your payments increase because you are borrowing more (the missed payment).

They will not take a payment on 28th March - you have to proactively send them money - they will only take the 1st April payment.

Hope this helps.

andrewmp

Rednoseranter wrote: »

Andrew - they are not moving your March payment forward, they are dragging the April payment you were expecting to make on 28th April to the 1st April. That why they are expecting you to make a payment 28th March and 1st April.

They recognise that this is a bit "off" and so are giving you 3 options - make both payments on both 28th March and 1st April, pay bits of the March payment in stages or miss the March payment completely. If you miss it completely they will add the missed payment to your mortgage balance - and you pay interest on that amount, therefore you your payments increase because you are borrowing more (the missed payment).

They will not take a payment on 28th March - you have to proactively send them money - they will only take the 1st April payment.

Hope this helps.

Why can't they just move the March 28th payment back three days rather than classing it as a missed payment and adding it all to the loan, this would seem a lot fairer to me. I would then only have to pay circa £25 rather than £369.26 to keep my payments the same.

Rednoseranter

I know its not fair really - but they can do it, it'll be in the terms and conditions. They will say that you are still expected to make a March payment - and that they have given you 3 options on which to make it.

if you make the March payment on 28th and then they take 1st April payment you wont be out of pocket (pay any extra interest) - you'll be skint for a month after paying two mortgage payments out of one payday - but they will argue that you are contractually obliged to 12 monthly payments.

andrewmp

It is really annoying to pay a mortgage, on time, out of every pay packet for the last six months and be left with a higher opening balance than the initial loan - all because of a stupid merger. I fully expected the loan amount to remain close to what I borrowed, I never expected it to surpass it at any point!

Robert_Sterling_3

[I started this at about 9.25 but amended it so I have now copied it to this position]

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.

Rednoseranter

If you are going to miss the March payment completely and add it to the mortgage all you can do is make a complaint to the firm, and then if you don't get satisfaction take it to the FOS - its costs them about £400 if you take it to the Ombudsman so they will probably offer something in that region just to get the complaint closed.

Good luck either way.

andrewmp

Robert_Sterling wrote: »

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

Robbery is robbery, no matter how small.

Rednoseranter wrote: »

If you are going to miss the March payment completely and add it to the mortgage all you can do is make a complaint to the firm, and then if you don't get satisfaction take it to the FOS - its costs them about £400 if you take it to the Ombudsman so they will probably offer something in that region just to get the complaint closed.

Good luck either way.

Thanks Rednoseranter, you've been a big help, I'll try the route you suggest.

I will take it to the FOS, especially now that I know it'll cost them £400, I'll feel better knowing they'll not benefit from their shifty practices.

I'm also going to start overpaying as much as I can, I want a decent LTV in 9.5 years so I can get a mortgage with a company who don't try to take advantage of their customers.

andrewmp

sloughflint wrote: »

This is what I always maintained to be the simplest option and found it bizarre that it wasn't being offered.

Regarding your point about owing more than you started, in the very early days of any mortgage there would be days ( leading up to normal payment date) where that would be the case. You just wouldn't be aware of it.

They should have been forced into giving this option by the FSA. The fact that they didn't offer this option leads me to believe they'd rather make extra money from people as they know most can't afford two mortgage payments in the space of three days.