Banks overcharging on repayment mortgages

EdInvestor

Sunday Times

Is there no end to it? If this is correct then perhaps it will be better to get a penalty free I/O mortgage in future and then overpay it.At least you can see what is going on.

HOMEOWNERS are being overcharged by up to £50,000 in a mortgage scandal involving some of Britain’s biggest banks and building societies.Evidence drawn up by an independent financial auditor reveals a catalogue of mistakes made by Nationwide, Alliance & Leicester and Abbey that led to some customers being overcharged interest for up to 15 years.

The blunders centre on repayment mortgages – the most popular type – as their complexity makes it hard to spot mistakes.Last night Jim Cousins, a Labour MP on the Treasury select committee, described the evidence as “extremely worrying” and called for random checks on mortgage providers to determine the extent of the problem.

Out of more than 30 mortgages reviewed by BankCheck, an auditing firm, the interest charged on monthly repayments was wrong in all the cases – and always to the customer’s detriment. The lender never lost out.In one case, a farmer was overcharged £56,520 by Nationwide following two separate mistakes, but the building society, blaming human error, only refunded the money after BankCheck high-lighted the problems....

Shambler

Speechless! :eek:

kingkano

The funny thing is the numpties that post comments on these articles...

Later I found out the interest is top end loaded so you pay most of it up front in the early years so if you manage to finish paying your mortgage early you will have effectively still paid interest on money that wasn't lent for the full term of the mortgage.

Numpty!