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unknown mortgage payment

I received a letter from my mortgage lender informing me of a considerable overpayment into my mortgage account that I have not paid in myself, thus reducing my outstanding monthly payments. It is obviously a banking computer error.
Where do I legally stand with this issue? Do I need to declare this, or do I save the difference in a saving account, wait for the lender to realise the error, amend my account details and pay back the excess?

Comments

  • dunstonh
    dunstonh Posts: 120,850 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    It is obviously a banking computer error.

    Or more likely a human error.
    Where do I legally stand with this issue?

    The money is not yours and it will have to be repaid.
    Do I need to declare this, or do I save the difference in a saving account, wait for the lender to realise the error, amend my account details and pay back the excess?

    Someone, somewhere has not had their mortgage reduced. Once they realise and notify the bank they will come to you and ask for the money back. You can either pre-empt it or you can wait. Your morals, your decision.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • DVardysShadow
    DVardysShadow Posts: 18,949 Forumite
    I received a letter from my mortgage lender informing me of a considerable overpayment into my mortgage account that I have not paid in myself, thus reducing my outstanding monthly payments. It is obviously a banking computer error.
    Where do I legally stand with this issue? Do I need to declare this, or do I save the difference in a saving account, wait for the lender to realise the error, amend my account details and pay back the excess?
    Frankly, you are being worse than naive. If you play this game, then when the error is corrected, your account will have all kinds of corrections and you will have to make up the shortfall, so the net effect will be disruption to your personal finances. Insist on keeping your payment the same while it is sorted out.
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Notify them rather than wait to be chased. It's both easier and something that will be of some assistance if you ever have to ask them for help.
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