MSE News: Thousands of Santander mortgage holders could get payouts after blunder

TheMightySwordfish

:wave: Okay...Thanks for the homework.

Santander_fighter

Hi everyone,
I'm a newbie to posting on here, but I have been following this Santander thread for a while. Thank you to everyone who has posted information on here.

My case history:

Held a Santander mortgage from May 2006 until May 2013 ( the first two years being on a fixed rate ) without the ERC after my fixed rate ended. Standard variable for the remainder of the other 5 years.

I Read the 'cap margin' article in Sunday Times on 21st April 2013. I phoned Santander the next day and lodged my complaint. I never waited for the letter and got straight on with filling out my complaint form over the phone. Needless to say, after 8 weeks the response letter on 3rd July from Santander about my complaint said the standard things. Apparently they had decided I could not get a better deal in December 2008. Hmmmm. I disagree.

Sent my complaint letter off to the ombudsman on 7th July 2013. To be fair they have been efficient in keeping me informed by email and post every month. I am waiting patiently as I know there must be many many similar cases.

Now the interesting stuff:

I have a letter from Santander dated November 2008, informing me of an interest rate change. This is exactly what the letter says on the back page:
" we are making a change to our mortgage conditions dated from 2002 to December 2006. Our standard variable rate will in future be no more than 3.75% above the Bank of England base rate. This change is being made under the terms of each of our standard mortgage conditions detailed below and will be effective from 15th december 2008. This change will mean Abbey can continue to charge all customers the same standard variable rate.

You are not required to take any action"

I'm sure some of you have read that before. I just cannot believe they could even think about getting away with that statement being how you properly inform all of your innocent mortgage customers that their SVR will be 1.25% higher than it should have been. It does not even mention "cap margin" in the text. But the last statement is the key one for me ! " you are not required to take any action ". That is completely misleading, and certainly not treating their customers fairly.

I believe Santander knowingly and deliberately worded it this way, because the big banks have arrogance and they believe they are untouchable.

All of my previous mortgages like many people, have been arranged by an IFA because I'm not a mortgage expert. When I read a statement letter from Santander which gives me information and then says " I am not required to take action " I unfortunately just trusted Santander and filed it ! Maybe I am in the wrong and should have sought expert financial help, but I did not know I needed to, just like thousands of other people.

Whether I was locked into a deal or not should not make any difference. My mortgage company have failed to inform me correctly on a change they have made to my mortgage which has ended up costing me thousands more over the years. They have withheld the correct facts from me, to enable me to make an informed decision.

Santander should be held accountable and be made to pay for their dishonesty. If the outcome from the Ombudsman is not in my favour I may be looking to take the matter to a court.

Thanks for reading.

Santander_fighter

crusaderstyle wrote: »

I received a newsletter to today from a consumer forum which detailed that the FCA are asking for people's views concerning mortgages.

Most notably they want to know what you think makes a change to a mortgage contract fair or unfair. The deadline is 30th September.

Do you think this may be relevant to the case(s)? It's a complex issue for sure

I DO believe it could be relevant - and I'm taking it as a good sign that this angle will be explored thoroughly in our individual cases. I also think this info may be sought after by the FCA because of the issues raised. They're getting ready!

The mortgage companies breached the contracts and that should automatically be unfair. There has to be consequences for Mortgage companies. If we breach our contracts, we would get charged heavily in some form.

Share your views guys - it may help more than you think!

Thank you for this information. I agree it is completely relevant to our case, and I've filled it out and sent it today :T

Santander_fighter

I've had some important contact from the ombudsman last week, anyone else been contacted recently by them ? It feels like something is happening at last.

Micko48

Santander_fighter wrote: »

I've had some important contact from the ombudsman last week, anyone else been contacted recently by them ? It feels like something is happening at last.

No I haven't heard anything.

Moneysaving_Newbie_3

Micko48 wrote: »

No I haven't heard anything.

Anything you can share?

edtheduck_2

just got letter form ombudsman yesterday saying it is taking them some time to carry out their investigations and they were just basically saying they hadn't forgotten about me.

ebc_123

Hi there, i had a letter from the FOS about 2 weeks ago after they called me earlier that week. Essentially they have decided that Santander was at fault, and they have negotiated me a good compensation deal of £5849. I was on a fixed mortgage w Abbey National that ended in 2011, and I never received any letter at the time about the cap margin increase, even though I could have got out without an ERC.
The compensation was worked out by looking at the best deal on the market at April 2011, and giving me the difference in interest between it (1.99%) and what I paid, up until 2014 when I sold the property. They agreed to waive the arrangement fee I would have paid, and also paid interest on that money I should have had, plus £250 for my troubles.
Hope this helps other people.

Santander_fighter

I've had an amazing phone call from the ombudsman earlier today with an offer from Santander. It sounds like they have admitted full liability for their errors. Today is a great day.

Dollydolittle

Have been following this case. We had a fixed rate 2 year deal that finished in Feb 2007.
We then got conned on to a 10 year deal at 5.9 % With extortionate exit fees.
I complained to Santander when this story broke but they said we were not affected.
Should we try and follow this up or we out of the time frame.
Any help or advice much appreciated.