Bank Has Advised I Am Due A Refund On Redeemed Mortgage

CharlieChaplin69

I wonder if anyone can offer any advice. I recently received a letter from my old Mortgage provider advising that whilst I was paying my repayment mortgage on a tracker rate that the amount the bank initially advised I had to pay was not corrected when the interest rates dropped in 2008/2009. As such they have written to say I am due a refund on the over payments made plus 8% SIMPLE interest as compensation. I have asked them for a breakdown of how they have calculated the refund figure but despite them offering me many figures over the phone, they decline to send me anything in writing that I can cross reference against my paperwork. My questions are:
1. Am I entitled to see a copy of how they have calculated the refund?
2. Is 8% simple interest a fair representation of of compensation?
3. Do I have any other recourse against the bank or does anyone know of anyone who has approached this a different way.
My concerns stem from that had I been made aware of the over payments then I would have reduced the payments and been able to enjoy the extra money each month and possibly used it for a holiday or an investment I would ordinarily have not taken for which I could now be benefiting from. The period of over payments stem from 2008 up to 2016 and relate to the majority of that period paying 4% over and above the rate should have been. Any advice or help would be greatly appreciate. Many thanks.

BoGoF

TBH I think most of us would be delighted at an unexpected windfall, take the money and move on.

Point 3 suggests you are after compo.

dunstonh

2. Is 8% simple interest a fair representation of of compensation?

Have you lost an arm or a leg?
Have you been disabled in any way?
Have you lost earnings because of this?

3. Do I have any other recourse against the bank or does anyone know of anyone who has approached this a different way.

No.

My concerns stem from that had I been made aware of the over payments then I would have reduced the payments and been able to enjoy the extra money each month and possibly used it for a holiday or an investment I would ordinarily have not taken for which I could now be benefiting from.

You get nothing extra for hypotheticals. The 8% is your compensation.

obay

CharlieChaplin69 wrote: »

I wonder if anyone can offer any advice. I recently received a letter from my old Mortgage provider advising that whilst I was paying my repayment mortgage on a tracker rate that the amount the bank initially advised I had to pay was not corrected when the interest rates dropped in 2008/2009. As such they have written to say I am due a refund on the over payments made plus 8% SIMPLE interest as compensation. I have asked them for a breakdown of how they have calculated the refund figure but despite them offering me many figures over the phone, they decline to send me anything in writing that I can cross reference against my paperwork. My questions are:
1. Am I entitled to see a copy of how they have calculated the refund?
2. Is 8% simple interest a fair representation of of compensation?
3. Do I have any other recourse against the bank or does anyone know of anyone who has approached this a different way.
My concerns stem from that had I been made aware of the over payments then I would have reduced the payments and been able to enjoy the extra money each month and possibly used it for a holiday or an investment I would ordinarily have not taken for which I could now be benefiting from. The period of over payments stem from 2008 up to 2016 and relate to the majority of that period paying 4% over and above the rate should have been. Any advice or help would be greatly appreciate. Many thanks.

That's a long time + 8% is amazing! What is the total value of your claim back?

I wouldn't ask for anything more, the bank has been upfront and honest with you.

Thrugelmir

CharlieChaplin69 wrote: »

2. Is 8% simple interest a fair representation of of compensation?

It's the statutory interest rate that you would be awarded if making a claim through the courts. Likewise it is calculated using the simple not compound method. By paying you interest at this rate. Your old lender has discharged their legal obligation.

Edi81

Jeez! Money grabbing or what?

Be thankful for the windfall.

8% is an astonishing rate of interest. Unless you know where to get that elsewhere!

AnotherJoe

CharlieChaplin69 wrote: »

My concerns stem from that had I been made aware of the over payments then I would have reduced the payments and been able to enjoy the extra money each month and possibly used it for a holiday or an investment I would ordinarily have not taken for which I could now be benefiting from.

Which was it? Is it that you would have invested it all in bitcoins and now be a billionaire, and they should therefore just sign over the bank to you, or that you would have gone on holiday to Malaga, got someone pregnant and would now be paying child maintenance and university fees and so you owe the bank £25k?

Call it quits and take the 8%.

haras_nosirrah

My concerns stem from that had I been made aware of the over payments then I would have reduced the payments and been able to enjoy the extra money each month and possibly used it for a holiday or an investment I would ordinarily have not taken for which I could now be benefiting from.

The above is very telling. Essentially you would have wasted the money - the chance of it going in an investment which would provide a return of greater than 8% was nil. It would have gone on spending money. The bank have done you a favour in financial terms and you will now get a decent payout you weren't expecting.

maninthestreet

If you don't want the money, I'll have it.

dimbo61

Now do something sensible with this money and pay it as a lump sum off your mortgage.
Even if you are in the middle of a fix I am sure you could ask the Lender to reduce your balance with this lump sum.
However I think you will spend it on holidays and nights out ?

getmore4less

in case you do decide to come back.

CharlieChaplin69 wrote: »

I wonder if anyone can offer any advice. I recently received a letter from my old Mortgage provider advising that whilst I was paying my repayment mortgage on a tracker rate that the amount the bank initially advised I had to pay was not corrected when the interest rates dropped in 2008/2009. As such they have written to say I am due a refund on the over payments made plus 8% SIMPLE interest as compensation. I have asked them for a breakdown of how they have calculated the refund figure but despite them offering me many figures over the phone, they decline to send me anything in writing that I can cross reference against my paperwork. My questions are:
1. Am I entitled to see a copy of how they have calculated the refund?
2. Is 8% simple interest a fair representation of of compensation?
3. Do I have any other recourse against the bank or does anyone know of anyone who has approached this a different way.
My concerns stem from that had I been made aware of the over payments then I would have reduced the payments and been able to enjoy the extra money each month and possibly used it for a holiday or an investment I would ordinarily have not taken for which I could now be benefiting from. The period of over payments stem from 2008 up to 2016 and relate to the majority of that period paying 4% over and above the rate should have been. Any advice or help would be greatly appreciate. Many thanks.

put the details up and I will have a go at working out how they got the figures.

mortgage amount/date in 2008,
rate(s) you were paying through out the period ,
mortgage at the end of the period
amount they have decided to give you.