Old Interest only mortgage - claim? is this legit?

Kate_Roberts

Hi - my partner and I had an interest only mortgage from 2004 to 2010. We received notification from a 3rd party (not from Santander direct) that we might have had the interest miscalculated and are due a refund. I progressed with the claim with the Mortgage Audit Bureau who have now advised us that we do have a case and that we should sign the paperwork that passes it to their solicitors. There is a 25% fee of whatever we win payable to them. They are very keen to point out that it is no-win, no-fee - but the small print of the terms and conditions stipulates that we would be liable for the court costs regardless of whether we win or not, with no indication of what those costs might be. I haven't taken this any further yet, but the Mortgage Audit Bureau tell me that their solicitor only takes on claims where there is a case with winnings more than £10,000. Obviously this has got our interest, but I am wondering whether anyone has any experience of dealing with the Mortgage Audit Bureau - or of claiming miscalculated interest - as I cannot work out how Santander could have miscalculated it to this level?? Can anyone help please? Many thanks in advance. Kate xx

Takmon

They just sound like a claims company fishing for your details by promising large sums of money.

Using those figures that would mean you would have paid at least an extra £138 a month on your mortgage payments, i'm sure you would have realised that was wrong.

ACG

Unless your Mortgage was ridiculously high they are not going to have miscalculated your interest by £10,000.

Ball park figures here...
Lets assume your Mortgage was £150,000 and at a rate of 5%.
The repayments on interest only would be around £625 a month.
For them to have been out (in your benefit) by £10,000, the repayments would have had to have been out by around £130 a month.

I am not saying banks are perfect, but I am pretty sure they would notice charging hundreds of customers on the same deal as you incorrectly by that amount. As soon as they do notice, they have a legal obligation to put you back in the position you would have been had the mistake not happened. So as soon as they realise they make a mistake, they have to make you aware.

Added to the fact that this company is giving you one bit of information over the phone and something else in writing. That does not exactly build confidence in them does it. Ask them to put in writing there will be no costs what so ever from them or their solicitors unless you end up with a payout?

Kate_Roberts

Thanks guys. I have also seen another thread on this forum asking a similar question about interest only mortgages and the advice back seemed to be that the compensation due wasn't correct, and that no one ever won their cases. So when something seems too good to be true (like this) it really is!! Thank you x

dunstonh

I progressed with the claim with the Mortgage Audit Bureau

Well known company. No published success cases. Most threads about them die a death when the person finds out that they have to pay charges later on.

but the Mortgage Audit Bureau tell me that their solicitor only takes on claims where there is a case with winnings more than £10,000.

That is part of their script but that figure seems to change with different people.

or of claiming miscalculated interest - as I cannot work out how Santander could have miscalculated it to this level??

And if Santander had miscalculated, the FCA would require them to refund the interest.

Like most dodgy cold calls, there is usually an element of truth in there. A few banks have had periods where they were charging incorrectly or where their T&C failed the consumer credit act rules and had to be refunded for a period. The FCA required those lenders to identify all those involved and refund without the borrower having to do anything.

There is also a second side to some of these dodgy claims companies in non PPI areas. There is little or no money in it in respect of your complaint about interest as they inevitably fail. However, a number of these companies have been crowdfunding financial claims to investors (not real investors but stupid mugs willing to be ripped off). The more people they sign up for missold mortgages etc, the more they can get people to crowdfund them. The directors of these dodgy firms extract the money until it becomes known that the whole thing is useless. By then, all the money in the firm has gone and the investors lose the lot.