Santander overpayment

joewa

Good Morning,
I remortgaged last week from Santander to Nat West
Santander took a payment out my accoun t on Monday and when i called i was advised it took take up to ten days to put back into my account
I advised i was unhappy with this and that whilst i had a mortgage with them they charged me £ 8.60 in interest and that i wanted the money put into my accoun t and until it was i would be expecting £8.60 per day to be repaid back to me
I was told the money would be back in my account by close of play Tuesday which it has not.Is it reasonable to ask for this amount of interest per day

kingstreet

Why didn't you cancel the direct debit to prevent any further payments being made?

The redemption figure on which your solicitor was completing states the last payment date, so you could have done so.

£8.60 per day is the interest on about £63k at 5% per annum. Assuming your payment was about £500, 5% interest over about 14 days is about 95p. Then you have tax to pay.

Is it really worth it? Getting something like a payment reversed is like trying to turn a supertanker. Probably not what you want to hear, but hey ho...

Buzby

As an error, no statutory amount, but 8% of the amount per annum (not per day) would be reasonable.

joewa

I was advised not to cancel any direct debit

kingstreet

By whom and when?

Wh05apk

I would never advise anyone to cancel the direct debit until they receive confirmation the mortgage has completed, if for any reason the mortgage does not complete, and the direct debit has been cancelled, it could result in you having a late payment recorded, potentially causing big problems, if the payment is made after the mortgage has been closed, it will be returned normally within 7-10 days.

kingstreet

I check completion with solicitor and if they can see no reason why it won't take place, I advise the client to cancel their direct debit if another payment is due on or just after completion.

In the event that completion doesn't happen, they can call the lender and make the payment by card on the normal payment date, avoiding the potential late payment issue.

joewa

it was the broker who advised, anyway sorted now