Interest calculation error

Fleetpete_2

I recently took out a self certificated mortgage with Mortgage Express, in September 2005 to be exact,today I received a letter from them stating that they had made an error in their interest calculation,resulting in an underpayment.
They say that they have no intention of trying to claim the money back as it is their error,however this now means that my repayments will increase from May by around £90 per month, having originally agreed a repayment figure when first taking out the mortgage,and bearing in mind there has been no interest rate change since then do I have to accept this.
furthermore I am probably entitled to ask for some further proof of their error and more details.
Anybody have any thoughts?

homer_j_3

If I have understood this correctly.

They made a mortgage offer saying that your payments are x amount based on you borrowing y amount at z interest rate.

Mtg Express have suddently realised that the figure quoted in your offer was incorrect and will not charge you for this, however, they have recalculated everything which is now going to cost you £90 more per month?

Thats an interesting one. I would speak to the Financial Ombudsman for their take on it and possibly some legal advice because the mortgage offer is a contract that states that they are lending you money on the basis that you fulfill your side of the contract. This mainly being you pay the agreed amount.

You have done this and they are now trying to alter the contract so surely you have to agree to it? I am not a solicitor and never had this situation before so would be interesting to know what you find out.

Fleetpete_2

Yes you are basically correct, they actually stated that they carried out a review of their
current mortgages and this error became apparent,I appreciate your advice and will now seek further advice, keep you posted.