Re-Mortgage problem

Avney

Hi all,

I recently re-mortgaged from The Mortgage Works to Halifax.
When I phoned the mortgage works to enquire about what date the money should go in to their account, they said that it didnt matter as interest was charged daily and that when payment was due at the end of the month they would re-calculate the amount and charge me accordingly.

The remortgage took place in the middle of the month and when the time came for recalculation I was told that they only calculate the interest on the payment day.

This meant that I was effectively paying interest on 2 mortgages for 20 days!!!! I calculate this to be an additional charge of £783!!!

I have issued a complaint with them for which they have more or less admited liablility and offered me £50 in full and final setllement!

I am at the stage where I have asked for this to be refered to a senior manager or else I will go to the financial ombudsman. This is the process their complaints procedure stipulates.

I would like to know if anyone has been through this process, or has some usefull advice/ tips.

Sorry for the long post, but it was too difficult to explain in less space!

Help will be gratefully received.

Barney088

I'm a bit confused as you didn't have two mortgages for 20 days. If you overpaid the mortgage works they will have to give you the money back. Check firstly with your solicitor to see the redemption statement, this will show what the Mortgage works requested to close your account. THis may or may not include the monthly payment that you paid. then see what the solicitor gave them. Your payment and the money from the solicitor should add up to the ammount of money owed (and requested in the redemption statement) to the Mortgage works. If you have overpaid then you rightfully get your money back.

You cannot be charge interest on a mortgage that you don't have but I'd suggest you talk to your solicitor regarding the completion statements. THe £783 you mention is likely to fall into that calculation somewhere.

Avney

Hi Barney,
Thanks for getting back to me. In trying to keep the note sort I left out an important bit of information.
Prior to the remortgage I had 2 mortgages. One was for a very small amount and that was the one that I remortgaged for a much larger amount. The remainder of the money from this remortgage went to paying a percentage of the second mortgage, but not all of it.

It is the second mortgage that I am having the battle with, as they should have reduced the amount owed to them from the date the money got transfered to them and not 20 days later when the payment was due.

Hope this makes more sense.
Once again any advice will be greatfully received.