Offset mortgage problem

icl1965

I took out an offset mortgage in August 2013 and recently discovered that my savings (fluctuating between 35-40k) had not been offsetting due to bank administration errors. They admitted their error and agreed to reimburse me any interest lost over the period of 7 months. The mortgage was for 150k and my savings (37k average) weren't offsetting for 7 months, does anyone know roughly how much this has cost me? I'm pretty sure its considerably more than the £15 RBS has credited to my account! However, I am unsure how to work out the losses. Can anyone help? Thanks in advance


Ian

ACG

If the interest rate was 4% i would imagine it would be in the region of around £60? Thats just me basing it on interest i received on my savings last year and making some guestimates.

mvteng

very basically, If we guess at an interest rate of 4%,

saving should be in the region 0.04 x 37000 x 7/12 = 863£

However, actual saving should be greater as this does not include the reduction on the total sum (150k£) which would be coming down faster due to the higher benefits which were not included.

icl1965

Thank you for the replies. I was thinking it was around 800 like the above answer. I just want to be able bit more certain how much I have lost out on through this error before I go back to them. It is indeed 4% interest. Thanks again, if anyone else can confirm the above that would be great also. Thank you.

ACG

Sorry i put £60, i meant £600.

My figure was based on if it were savings - you do get taxed on savings, the figure i gave was net rather than gross.

Slightly different in terms of offset but hopefully it puts you in the ball park.

Either way it is a large amount of money i would be asking that RBS work out how much you are down by and applying that to your account plus £20-50 in compo. Its not your job to work out their mistake.