reclaiming overpaymen

jazi

Whilst looking for a new mortgage deal my husband found out he had overpaid into the mortgage by 3K. We are not sure how this happened as he pays by direct debit. Anyway a friend has told me that we could claim this back from his bank as they shouldnt have paid it out is this true and how do we go about it. Thanks

~Brock~

Presumably the mortgage balance is £3k lower than it would have been so you are playing less interest on it?

Why bother claiming it back when it's money you owed anyway? You will only have to pay it again at some point in the future.

jazi

The mortgage hasnt reduced and I suppose it is possible that the 3k will be taken of at the end. Its not that that I want to reclaim. Apparently we can claim the same amount from husband bank that paid it into the mortgage which is with another bank.

dunstonh

Can you clarify if you are saying that you bororwed 3k less when you changed mortgage deals or if you overpaid on the monthly payment?

Apparently we can claim the same amount from husband bank that paid it into the mortgage which is with another bank.

On what grounds? The only thing that comes to mind is the direct debit guarnatee scheme. However, i wouldnt go down that route. If the bank paying the direct debit uses that, they will will recaim the full direct debits for the whole period and if the lender pays that back you would then be in arrears. You destroy your ability to get credit for years.

First thing to do is find out how you overpaid the mortgage and where the money is. The lender should be able to tell you.