Mortgage issue with lender

annabecks

In 2001 I changed from a PEPS repayment mortgage to a repayment mortgage (as I thought) I also paid off a % of the initial loan at that time. Recently I have just discovered that the Building society have placed me on an interest only repayment basis since my initial request in 2001. I have been in to my branch on 4 sepersate occasions now and they are not acting on my issues I met with a manager who was putting my complaint to their head office 2 weeks ago and I have not to date received a copy of her letter to them as requested.
Where do I stand in relation to this as i have now changed over to a straight repayment even though this was my initial request and it was changed from that to interest only. I have a copy of a letter sent by me informing them that I had changed the life assurance policy from their archives. On this letter there is a hand written note stating that it is a repayment mortgage dated 2001. Initially I was informed that I had written to them changing my mortgage repayments and this letter was the one where they alledge that I requested an interest only mortgage.
Please advise

firesidemaid

hi there

i'm not quite sure i completely understand what you mean regarding your particular situation. how did you change the mortgage in 2001 - by phone, letter or in person? did they give you any paperwork at that time? in theory they should have done, as you changed your mortgage.

regarding the complaint, i too am having trouble with a different bank at the moment, having twice had my phone complaints ignored.

get a copy of your lender's complaints procedure. i know it's a pain, but write a full letter of complaint and send it via recorded delivery to their official complaints dept. it is then that you will get action! make it clear that you feel that they have mis-sold and that you want your mortgage to be reinstated and for them to make up the lost capital payments.

did you notice your balance not decreasing on your annual mortgage statements?

annabecks

sassacat
I changed my mortgage in person with a rep at my local branch. I did not receive any paperwork as she stated that this would be organised by the branch. I did notice that my loan was not decreasing and only became aware this year (feb) when i received a letter stating that they wished to know how i would repay the loan at the end of the term.

i explained all of this when I met with the manager 2 weeks ago I was informed that she would send my complaint in to head office I also completed a statement in relation to my issues which she photocopied as well as the archived copy of the instructions letter sent by me advising that I had changed my life policy NOT the mortgage.
my partner has also said the same as you in that they should reinstate the mortgage back on track until it's completion. At the moment they have doubled my monthly payment.
Thanks

firesidemaid

hi
when you say they have doubled your monthly payment, is this at their cost or yours? it should be their cost.

i also meant to say that as well as their complaints procedure there is/will be a mortgage code of conduct. both of these should let you know how long it will take for your complaint to be dealt with.

once i wrote the letter to my bank i received a letter explaining what would happen next and that they would resolve it or write to tell me what was happening by a certain date - 2 weeks. they also included a copy of their complaints procedure leaflet.

i would go back to your branch to find out what is going on - if nothing, write to them.

good luck

annabecks

Thanks for that sazzacat The repayments are at my expense in relation to your question I did go to my branch yesterday and am awaiting a phonecall!!!!!
I will probably end up again writing Thanks for your help
Ashacat

homer_j_3

annabecks wrote: »

In 2001 I changed from a PEPS repayment mortgage to a repayment mortgage (as I thought) I also paid off a % of the initial loan at that time. Recently I have just discovered that the Building society have placed me on an interest only repayment basis since my initial request in 2001.

Didn't you receive any annual statements which would have shown you that you were not paying anything off or did you not see an immediate increase from the interest only payment to repayment within the next one or two payments following your request. If not, did you not question at this point?

I have been in to my branch on 4 sepersate occasions now and they are not acting on my issues I met with a manager who was putting my complaint to their head office 2 weeks ago and I have not to date received a copy of her letter to them as requested.

If you make an official complaint, the lender should acknowledge your complaint within 5 working days. They should have sent you a copy of their Internal Complaints Procedure explaining that they have 4 weeks to fully respond to your copmplaint or advise why they cannot provide a full response at that time and give you an idea of when they will be in a position to answer you fully. If after 8 weeks, regardless of where your complaint is upto, you are allowed to get the Financial Ombudman Service involved. This is of course that you have not accepted an offer of resolution prior to this point

Where do I stand in relation to this as i have now changed over to a straight repayment even though this was my initial request and it was changed from that to interest only. I have a copy of a letter sent by me informing them that I had changed the life assurance policy from their archives. On this letter there is a hand written note stating that it is a repayment mortgage dated 2001. Initially I was informed that I had written to them changing my mortgage repayments and this letter was the one where they alledge that I requested an interest only mortgage.
Please advise

It is difficult to say without seeing the letter but what I would say is that we are now 6 years later and you should of had at least 5 annual statements and opportunities to query this. Unless there has been a massive mess up on their side I am not sure what they can do. It will be down to their internal investigation and what they think and what you want as a resolution.

I would get a telephone number for their complaints department and call them direct and ask why they have not acknowledged your complaint. I would then take it from there by waiting for their initial response and then deciding what action you need to take next.

UK007BullDog

Any complaints always write a clear comprehensive letter and send to the mortgage complaints department by registered mail.

Also as Homer_j said its been 6 years and you should have recieved a yearly statement where you should have noticed that your monthly payments are the same or near the same as to what you were paying before the change. It might be difficult for you to fight your corner. However do let us know how you get on as this is an interesting case.

Good luck!

annabecks

hi there
In answer to question no I did not notice unfortunately due to bereavement and a divorce I did not read small print I also thought as I had paid £5K off my balance following transfer that this was accounted I have actually received a phone call advising that customer services will be responding to me by 31/5 I find it interesting that the building society have sent me a copy of the letter with a hand written note stating that it was a transfer to repayment and yet they placed me on an interest only mortgage If this is not resolved I will take further Thanks for your advice
Ashacat

sqeaky

I have a similar thing going on: 3 years ago I switched to a 3 yr fixed as my previous one was running out. they sent me form of authority which I signed and returned. but I have recently found out that they didn't apply this rate, and i have been on a variable one, costing me over £1000 more over the time. Yes I should've noticed, but the DD goes out my partners acc, and with the annual statements - I just looked at amount owed (I wont anymore!)

At first they said goodness me, we will back date it and pay it back, but a letter arrived saying tough, we wont. I have taken it to the next stage and they have written again and said that what happened was
"They received my form of authority, and sent it to another dept who would send me out another form (?!), but unfortunatley this deptment never got my forms so they didn't send me out the next one etc etc so I can either except £250 for my trouble ( I have 30 days to claim this) or take it to the Ombuddsman, which will take a bout 6 months. I don't know whether to? I want to, and I know it's half my fault for not noticing, but they admit the inital error too.
The ombuddsman might say they owe me nothing, or might fall in my favour. Has any one else been through the ombuddsman route with something similar?