Scarborough BS and Skipton Mortgage DD rip off

Robert_Sterling_3

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fineanddandy

Thanks beecher, you understand what I'm getting at, whereas Robert does not.

Thanks to both for your comments

Letmeiniwannaaskaquestion

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.

Robert, you have completely misunderstood this.
The March payment is being collected on 28th March, the April payment is being collected 3 days later. For those that cant afford it, the March payment will not be collected, but will be added to the outstanding balance & will accrue interest over the remainder of the mortgage period. A hell of a lot more than 42p. Effectively the mortgage period is being reduced by by one month, but the amount of payments are not being reduced. Total Rip-Off, i plan to move my mortgage at the earliest opportunity on principal.

Letmeiniwannaaskaquestion

I phoned up & registered a complaint this morning, they are pretty clueless to be honest. I'm off at the earliest opportunity.

fineanddandy

Letmeiniwannaaskaquestion wrote: »

I phoned up & registered a complaint this morning, they are pretty clueless to be honest. I'm off at the earliest opportunity.

Are you making a formal complaint or are you going straight to the ombudsman Letmeiniwannaaskaquestion?

That is why I have not rung yet, as i think I will waste my money ringing them on the 0844 number, and get nowhere.

Im waiting a few days to see if it gets any coverage on a bigger scale.

silvercar

You can't go to the ombudsman without going through the internal complaints system. Well you can, but the ombudsman will just refer you back to the lender until you have exhausted their own complaints system.

If what you say is true, I don't understand why the press haven't jumped on this.

robwal1969

hi there,in the same position,got a 25 yr fixed deal with Scarborough back in oct 2008.dec 29 letter came though the door saying that we would be contacted in march,my letter arrived yesterday,and said (what fineandandy said at the beginning).i phone'd Scarborough that evening to be told they have no details of what would be happening to my fixed rate,today i phoned skipton,to ask what my new payments would be,i was told,i can not deal with you as you are a Scarborough customer.all i want to know is WHAT WILL SKIPTON TAKE OUT OF MY BANK ON THE 1st APRIL!!!!!
will the rate that i took out in the first place,be replace'd with a skipton deal.i dont know.....sorry it short,as i have to get back to work .will check back later.
im with you on this fineanddandy.

beecher

robwal1969

If you believe the times, you'll stay on your fixed rate until it expires.

http://www.timesonline.co.uk/tol/money/article5075125.ece

Scarborough borrowers on fixed-rate deals will carry on paying their fixed monthly sum until the deal expires, at which point they will be placed automatically onto Skipton’s SVR, unless they negotiate another deal.

Marc1978

I think Robert is right on the payments, you will pay an additional amount for the 3 days that no payment has been made.

If you pay off the additional amount which is shown in the example as 42p you will be in the same position on April 1st as you would have been if your payment was made on 28th March. Your mortgage term is 3 days longer than before.

If you don't pay off the additional interest charge you will pay interest on that over the term of the mortgage.

Possibly? Not sure. My head hurts.

gizmo111

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?