Mortgage company question

jennai

I have an interest only morgage and pay seperate money into an Equity Deposit which gets transferred over once a year. I recently had my yearly statement and saw it hadn't gone down. So I spoke to the company that deal with my equity deposit money who confirmed payment had been sent and that it had been cashed nearly a year ago.
I chased this up with the mortgage company to find out for the past 9 months this money has been put into some one elses account.

This is my question where do I stand with interest for this money? and at this point can they refund that money back to myself instead of putting it into the mortage as situations have changed and could do with the spare cash.

Wh05apk

No idea what sort of mortgage this is, never heard of anything like it, but if money has been credited to the wrong account, then whoever's error it was should be refunding you the interest charged.

jennai

It is a normal Interest only account but then basically at the end of the year putting a lump sum into it, but like i say it got put into some one elses account. They havent offered any interest to me. Just sorry for a mix up.

Wh05apk

Who do you pay the "equity" part to, who's the lender, why not just pay direct to the lender, as you'll presumably be paying more interest than you earn elsewhere?

Is the transfer something that happens automatically every year, has it been done correctly before?

jennai

It was through my mortgage broker his company basically took monthly deposits off me then in April would pay it all to GE Money my mortgage company (i did this instead of a repayment mortgage). This is the first year of it happening so no other years could it of gone wrong.

Wh05apk

Sounds very dodgy to me, so you are paying to a broker, who holds your money then once a year he transfers it over? What is the supposed benefit of this?

With regards to the error, I think you need to establish who is to blame, did you provide the wrong account details, die the broker send it to the wrong account, or did GE money post it to the wrong account, once you know who is to blame, you can pursue them.

jennai

I haven't done this since November the equity deposit but it supposidly brought your mortgage down quicker doing this. GE money were the ones to blame as correct account number, name, address of mortage was all on check just they put in wrong account.

Wh05apk

Down to GE they should correct it then, if they were supplied the correct details they should treat it as having been paid correctly.

I would pay the money direct to GE in future.