Building Society good will ?

edited 31 January 2015 at 11:29PM in Mortgages & Endowments
13 replies 1.3K views
bigsargebigsarge Forumite
5 Posts
edited 31 January 2015 at 11:29PM in Mortgages & Endowments
hello everyone
Found this site whilst trying to find answers to my problem
Recently my with profits endowment matured with quite a shortfall , it should have covered my £45,000 mortgage but it only paid out £31,900 , i paid £30,000 into my mortgage account and was then going to arrange a repayment mortgage for the balance , four days after paying the £30 k i received a letter from my building society stating my agreed mortgage term had expired and that i still have an outstanding balance of £45,000 (the letter is dated the same day as i deposited £30k ) the letter then proceeds to say as a goodwill gesture they have closed my mortgage and cleared the balance ????
i had to read the letter several times and sit down !!
i contacted the building society and they have admitted sending the letter and have copies of such letter etc. but say it must be a clerical error ?? they say my mortgage is still active and my balance to clear is £15k
i am waiting until monday morning so i can visit my branch to discuss further
If this letter is genuine and they have cleared my mortgage then fantastic but they are stating they have cleared the full amount obviously the letter was written before they knew i had paid in £30k so am i going to get a refund ?
i admit i am no legal eagle i am just a working guy and i don't want to say or do anything that can harm my argument with them
please anyone have any answers to this
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Replies

  • kingstreetkingstreet Forumite
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    They will apologise for the error and offer you perhaps £50 in compensation for the inconvenience.

    They aren't going to honour this and you certainly aren't going to get your £30k back.

    If you wish you can take this to FOS after a final outcome to a complaint to the lender, but I wouldn't expect any change in the outcome. Lenders, like borrowers, are allowed to make mistakes.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Thank you for the advice , to be honest i did doubt it to be true as most things that seem to good to be true often aint , i do think its a very cruel mistake for the building society to make though
    once again thanks
  • GoldiegirlGoldiegirl Forumite
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    kingstreet wrote: »
    Lenders, like borrowers, are allowed to make mistakes.

    The difference tends to be that people want to hold the lenders to account for the tiniest mistake. Whereas these days, the customers blame everyone else for their mistakes, instead of themselves.

    The above is a general comment, not related to the OP

    In this particular case, it sounds like a genuine mistake. I wouldn't call it cruel, as no malice was intended, and it's pretty obvious that lenders don't just randomly clear mortgages at the end of the term.

    I'm sure they'll offer a goodwill payment, which you can accept, and move on.
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • statorstator Forumite
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    Unless they already knew the mortgage was miss-sold and wanted to just cut their losses.
    Changing the world, one sarcastic comment at a time.
  • GoldiegirlGoldiegirl Forumite
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    stator wrote: »
    Unless they already knew the mortgage was miss-sold and wanted to just cut their losses.


    I think that is a very unlikely scenario
    Early retired - 18th December 2014
    If your dreams don't scare you, they're not big enough
  • stator wrote: »
    Unless they already knew the mortgage was miss-sold and wanted to just cut their losses.

    Like i said in my op i am no legal eagle but when you get a letter like this i do wonder ?
    when i initially took out the mortgage with the halifax it was on an interest only plan covered by a with profits endowment policy with legal and general this was back in 1989 , i can still vividly remember the person who set up the mortgage stating this was the mortgage i needed and the endowment would pay the mortgage off after 15 years or i could leave it to run full term and have a big nest egg at the end , we all now know this didn't happen to a lot of people and i was warned about a shortfall by legal and general , i did fill out their forms regarding being miss sold the endowment but they rejected my claim stating i had signed their agreement showing endowments could go down as well as up , i just thought fair enough thats that then so i just carried on and left everything as it was , when the policy matured it paid out £31,900 instead of covering the £45,000 it was intended to do.I just paid £30k into my mortgage account and i am going to either set up a repayment mortgage to pay the outstanding 15k off or maybe pay it off in total through my business account . Just came as a bit of a shock to receive this letter , even the guy at the halifax call centre i phoned acknowledged the sending of the letter and could see a copy of it on his screen so i know the letter originated from them , he said initially it was a clerical error but as he looked into the department that sent the letter he wasn't sure ? i will pop into my local branch in the morning and get their views
    many thanks
  • amnblogamnblog Forumite
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    In 1989 the base rate was 14% rising to 15% and had been in double figures for a decade.

    Within four years it was down to under half that at 6%.

    Projected returns on endowments (returns would typically be a little over inflation which was close to base rate) were therefore much higher at the time of sale than anyone could have imagined them being over the following 25 years.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog wrote: »
    In 1989 the base rate was 14% rising to 15% and had been in double figures for a decade.

    Within four years it was down to under half that at 6%.

    Projected returns on endowments (returns would typically be a little over inflation which was close to base rate) were therefore much higher at the time of sale than anyone could have imagined them being over the following 25 years.

    Yes i can see what happened and to be honest i was glad when the interest fell but obviously my endowment suffered , so how do plenty of people get compensated for the so called miss selling of either mortgage or endowment
  • amnblogamnblog Forumite
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    As endowment returns fell so did monthly mortgage interest. Most people 'spent' the interest saving.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ok so for what reason are people getting compensation ? if we all knew investments could go up or down
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