Woolwich Mortgage Woes

marieanne_2

:mad: I have been overpaying my mortgage for the last three years with the intention of not only reducing mortgage quicker but saving interest. It turns out that The Woolwich haven't been applying these payments to my account but holding this amount in a seperate account running along side the main account. It has taken me six months for them to reveal this and only because I wanted a redemption figure from them and when it came I queried it.
Can anyone advise me if I am entitled to interest on this amount (approx £8000.) and if I can claim back the difference between the monthly payments I should have been charged and the amount I was.
Thank you

pusscat

Have you riased a formal complaint with them?

I had an ongoing problem with an offset mortgage that had been set up incorrectly - it went on for about 6 months and I had the direct number of a lady in the complaints department. She was great - it took a while to get it all sorted out, but having a single point of contact made it all easier. The complaints department seem to have quite a lot of autonomy - whenever we were charged a penalty fee (because the account was set up wrongly) she just took it off there and then.

The call centre people were very nice, but unable to help much - as soon as we raised a formal complaint it was a different matter altogether....

Don't know about the interest though

Puss
xx

marieanne_2

Thank you for your reply. Yes I have made an official complaint but as yet haven't been offered any interest or reason.
The problem is my local branch agree that information given was incorrect and that interest should be paid on £8000 and that my monthly payments were higher than they should be as the money wasn't reducing loan but complaints department won't accept this. I do have a lady contact , very aggresive and unhelpful

marieanne_2

I haven't had many replies to my concerns and hope that anyone reading this will have some good advice or perhaps they have been in same situation and finally got a resolution. I would be grateful for any help. Thank you

roswell

It was my understanding when i opened the account that the amount you over pay becomes a reserve amount that you can withdraw at any time eg like a over draft wasnt thsi how it was explained to you when you opened it ? your reserve amount + outstanding amount should = original mortgage total. i doubt you can claim interest as you dont pay interest on the over payment amount it "offsets" to its value the amount from the full balance.

chivers1977

I work for them and if you have a daily rest mortgage then the overpayments are applied to the main capital and reduce the interest that you are charged. If you have one of the older mortgages on monthly or annual rest, then your overpayments reduce the interest charged at month or year end.

What makes you think that they have been applied to a separate account?

UK007BullDog

Ah yes, just sorted one of those the other day.

When you make an overpayment you need to write on the cheque or on the over the counter payment your "main mortgage account number" and the words "PART REDEMPTION". Then they will place the money towards your mortgage. Reducing the mortgage amount. My customers money went into some other "place" not his reserve either, just sitting there doing nothing as they did not know what to do with it. As everything is computerised it was not noticed.

If you complain to the Woolwich do it in writing by registered mail only. Their call centres and many departments in Leeds and Dartford are closing due to the amalgamation with Barclays. You should get an initial response in writing within 5 days I believe. Don't bother with telephone as people are getting the sack they just cannot be bothered and morale is very low at the moment.

marieanne_2

Chivers 1977
Because they wrote and told me. Up until now didn't know what to do with it. That is why I want interest and compensation for negligence.

chivers1977

You just need to ask them to apply the funds and backdate then....

What compensation are you looking for in addition - tel calls etc?