Mortgage error

startled

The bank has made an error with the rate of interest I've been paying on my mortgage. They didn't give me 30 days notice that the rate was going from 2% above the base rate to 3% on their variable rate. They have told me I'm entitled to a refund which they'll take off the amount due. They won't however refund this direct. Can they do this?

VIGILANT22

Sounds like you has a deal which expired, this deal & expiry date would have been documented in your KFI & offer ..if the lender has made an error they will adjust your account accordingly..

PeteHi

does it not say in the t&c's?

startled

Nothing in the terms and conditions. The deal ended after the change from 2 to 3% above the base rate so it appears to have forgotten to tell us. It's not as if we've lost out, we knew once the original deal had come to an end it would go to the variable rate of 3%. We had forgotten that original deal had said the variable would be 2%. What I'm concerned about is that they've admitted an error, said we are due a refund but won't give us the money. If it was the other way round things would be different. I was just wondering if anyone else had had something like this.

VIGILANT22

startled wrote: »

The deal . What I'm concerned about is that they've admitted an error, said we are due a refund but won't give us the money. If it was the other way round things would be different. I was just wondering if anyone else had had something like this.

They've admitted their error and going to amend account accordingly, what more do you want??....Compensation!!....rolls eyes...........

startled

Fair enough, almost. I would have liked the money up front rather than just reducing the outstanding balance of the mortgage. There are so many things I could buy with the money....sorry, there are so many things my wife could buy with the money.

VIGILANT22

Ye but yr mortgage balance has been reduced, how much money are you talking about?

startled

Nearly £900. It seems almost cheeky asking for it but, as I said before, if I broke my end of the contract the bank would come down on me like a tonne of bricks and expensive bricks at that.

VIGILANT22

Can they offset the amount so you either have no mortgage payment or a reduced mortgage payment if you need the money?

startled

Apparently not but, that was just from the advisor who said it wasn't their policy to make refunds. It's now with their complaints team. I'll let you know the outcome. Either way I've been lucky but if the banks can be greedy I don't see why I can't for once.