Bank charging more interest than taking payments ?? confused

Thrugelmir

Suggest you see what action the bank is prepared to take to resolve the situation first. Before seeking advice.

barneybo

thanks, I will wait on the bank then, should I bring in my documentation?

Did talk to someone informally this afternoon, they said to be prepared for a bill from the bank for outstanding monies, as the bank have not been taking enough monies from my account, he assumes they will calculate how much I owe and ask me to settle the difference.

Lets hope the bank comes up with a better solution

GMS

The bank may well admit the error but then state that you were provided with statements annually showing a balance which was not reducing together with monthly mortgage payments which were far less than they should have reasonably expected to be.

Not saying this is right but I would expect the bank's approach to be something along those lines

barneybo

Must admit it certainly seems that way, I did ask at the bank, if I had not come in to question the matter, what would happen if they had continued to the end of the mortgage?. I was informed. that at that time I would settle the capital amount with my endowment policy - which I explained did not exist - they informed me that the capital was due at the end of term and that I would be expected to pay it.

Annisele

The Financial Ombudsman Service has a technical note on mortgage underfunding.

None of those scenarios are identical to yours, and I doubt the Isle of Man bank is in FOS jurisdiction anyway - but they'll give you some idea of what FOS thought in those cases.