Mortgage Company Just Paid Back Miss-Calculated Interest

alex_knight_2

Hi all


I have an interest only mortgage and I just received a letter from my mortgage company saying they calculated my interest wrong and have just paid a considerable amount back into my mortgage account by knocking the amount off the total owed and they have also adjusted the total I pay per month


As much as this is great as its off the total I owe, as I made payments per month that were larger than they should have been, can I ask for that amount or some of it to be paid to me instead of coming off my mortgage account?


Many kind thanks

[Deleted User]

No, they need to put your account back in the state it should be.

alex_knight_2

Ok, I thought as much so many thanks. Really appreciated

getmore4less

Deleted_User wrote: »

No, they need to put your account back in the state it should be.

If they have been taking too much money, for an interest only mortgage "back in the state it should be" would be the same amount as when it was taken out, not a reduced capital amount.

begs the question

If the payment was wrong why the OP did not notice?

muhandis

You can definitely ask. I know I would, if I had a better place to put that money than paying off capital on an Interest Only mortgage. The worst they can do is say no.

Don't bother talking to their normal customer service staff, they will most likely fob you off. Check their website for a complaints email address and send a written complaint clearly stating the issue, how it's all down to an error on their part and what you want to see happen as a resolution.

Better still, use the MSE Resolver tool https://www.moneysavingexpert.com/site/resolver/ to make your complaint, it is superb.

A. Worst case scenario they say they can't do anything more than they've already done.

B. Middling scenario they say they can't do anything and offer a token amount as compensation.

C. Best case scenario they refund the excess amount charged and put you back in the situation you would have been on your IO mortgage.

If it's a BTL mortgage you likely can't take the complaint to the FOS and that's that.

If it's a regulated IO mortgage then in scenarios A and B you should have the option of going to the FOS.

All this will hardly take a few minutes of your time. Don't let them off that easy!

alex_knight wrote: »

As much as this is great as its off the total I owe, as I made payments per month that were larger than they should have been, can I ask for that amount or some of it to be paid to me instead of coming off my mortgage account?

Many kind thanks