Mortgage complaints

Menina_2

We have registered complaints with our mortgage company. In short they offered us an interest only mortgage, then said it was repayment. Then they apologised for the mistake, gave us £75 compensation and sent us a letter saying we are in an interest only mortgage to the end of the term of the mortgage. We have means to pay the mortgage at the end of the term. Then we receive another letter saying we are on repayment.
We have many phone calls there & back. We requested our notes and recorded phone call transcripts under the Data Protection Act in October, we sent a £10 cheque with a letter by recorded delivery. We have not received this information so I believe they are in breach of the Data Protection act. We have a current complaint. We are waiting for a call today from a senior customer services manager, they are suggesting they will do something for us but I don't think it will be the interest only mortgage. Are we in our rights to insist on the interest only as it was agreed by letter from them? Secondly how do we proceed reporting them for breach of the Data Protection Act.
Any advice would be gratefully received, this has been going on since August, we are both stressed, can't sleep and going through a bad time especially with Christmas coming up.

dunstonh

Any advice would be gratefully received, this has been going on since August, we are both stressed, can't sleep and going through a bad time especially with Christmas coming up.

This should not be causing you any stress. You know the position you are in. It is not affecting you financially. You have the means to repay the mortgage when required. It is just a clerical error that is not getting resolved quickly. Frustrating yes but that is all.

This is the sort of thing they can resolve easily with someone making sure whatever is on the system that is causing the confusion is corrected and by paying you a goodwill gesture of £100-£250.

Let_Us_See

Did the lender issue an interest only offer or mortgage? If so, had the mortgage completed, and only afterwards the lender tried to change to a repayment scheme?

If before completion then there is little you can do, although you may receive some compensation. After completion is different, and a little more factual information would help.

Menina_2

I said we have means to pay the mortgage at the END of the term, it is causing us financial problems as they have taken the repayment figure from our bank instead of the interest only - so don't make assumptions.
The mortgage is part way through, we went onto a temporary interest only period, then we completed a repayment vehicle form which was accepted & we went onto interest only to the end of the mortgage term. we have gone there & back several times with phone calls & letters with conflicting information & eventually received a letter confirming we were on interest only with an apology plus the compensation.
My point is that if they do not resolve this then should we go to the financial ombudsman because in my eyes we have a legally binding contract as they have confirmed it in writing. Can they then go back & change their mind? Or should I find a solicitor?
Thanks for any constructive help.

dunstonh

I said we have means to pay the mortgage at the END of the term, it is causing us financial problems as they have taken the repayment figure from our bank instead of the interest only - so don't make assumptions.

If you want people here to help you then its best not to be aggressive in your posts.

My point is that if they do not resolve this then should we go to the financial ombudsman because in my eyes we have a legally binding contract as they have confirmed it in writing. Can they then go back & change their mind? Or should I find a solicitor?

A lender can move you from interest only to repayment basis if it feels your repayment vehicle is unsuitable or not going to hit target. Typically they apply it to any difference rather than the full amount. However, that doesnt appear to be the case here. More a clerical issue.

However, it is not a major one. I t is an inconvenience yes but not something that is going to affect your ability to repay the mortgage. Also, you are saving money on interest. So, its an error that is likely to make you financially better off when they return the overpayment to you. Plus, you will likely get a couple of hundred quid out of it.

Halifax will resolve and its not something you would expect the FOS to get involved with. However, that option is available to you if Halifax do not resolve this within 8 weeks of your complaint being made. It sounds as if they are attempting to resolve it based on what you have said. Using a solicitor would just be a complete waste of money and not needed.

holly_hobby

Menina wrote: »

In short they offered us an interest only mortgage, then said it was repayment.

Ok, when did this happen ?

What type of mortgage did you apply for (ie what you wanted) ... an interest only or repayment ?

You say the mortgage is part way through so you have completed.

Menina wrote: »

Then they apologised for the mistake, gave us £75 compensation and sent us a letter saying we are in an interest only mortgage to the end of the term of the mortgage.

Ok this sounds like you did complete .... with £75 D&I for the confusing offer letters.

Menina wrote: »

We have means to pay the mortgage at the end of the term.

You also say that you have subsequently completed a vehicle repayment form, which they accepted.

So you have a IO mge with an independent repayment vehicle

Menina wrote: »

Then we receive another letter saying we are on repayment.

WHEN did you receive this other letter ?

How long after the initial issue (where you recd £75) did this occur ?

Was this after the repayment vehicle questionnaire ?

How much are your mge payments (net of any repayment vehicle) each month, what is the outstanding mge and interest rate (if your note sure of the payrate, we can probably guess just from the mge balance and what you're paying, as to if you're on an IO or C&I arrangement.

Menina wrote: »

We have many phone calls there & back. We requested our notes and recorded phone call transcripts under the Data Protection Act in October, we sent a £10 cheque with a letter by recorded delivery. We have not received this information so I believe they are in breach of the Data Protection act.

This is a Subject Access Request (SAR), under which the firm have 40 days from receipt of the request, to provide all held data they hold under the nominated account(s).

Menina wrote: »

We are waiting for a call today from a senior customer services manager, they are suggesting they will do something for us but I don't think it will be the interest only mortgage.

This is confusing are you on C&I or not ?

Menina wrote: »

Are we in our rights to insist on the interest only as it was agreed by letter from them?

Yes - IF they putting you on repayment is a complete clerical error on their part. And not as a result of any arrears management, or repayment management exercise ie your cited repayment vehicle/method is not acceptable or considered approrpiate

But from what you have said neither appear to be the case (which I emphasise is based solely on what you have revealled so far). but I must add from what I've read, I am finding a bit difficult to get a handle on what has and is currently occured under the account.

Menina wrote: »

The mortgage is part way through, we went onto a temporary interest only period, then we completed a repayment vehicle form which was accepted & we went onto interest only to the end of the mortgage term.

Again, I don't understand the above and what you mean by you were on a "temporary" interest only arrangement, but later having completed a repayment vehicle form, you subsequently moved permanently to IO ....

As either the lender verified your IO application and accepted you and your repayment vehicle (RV) at outset (thereby permitting you to complete on an interest only basis) or they didn't (unless it was keyed as repayment from outset so you RV wasn't examined at underwriting stage) ...

So I'm a little confused on this aspect, I read it that its just their communication that incorrectly stated you were on repayment, but the actual active mge account (and payments) being taken were on an IO basis (but apologies if thats as a result of my mis-reading and not your info ).)

Menina wrote: »

Secondly how do we proceed reporting them for breach of the Data Protection Act.

In the first instance you make any DPA complaint directly to the firms Data Protection Officer. If they don't satisfy your complaint, you may then refer it to the Information Commisioners Office (ICO) for review - http://www.ico.org.uk/complaints

Bit more meat on the bones needed for any meaningful help ... but hope this helps in the meantime.

Holly x

opinions4u

so don't make assumptions

Make yourself clear then.