they are Adding money owed to Mortgage overpayment

mikefox

The crux of the problem as i can understand it: We originally had a repayment mortgage. During the banking crisis 07/08 we took a pause in the mortgage as I became unemployed. This I believe put us on an interest only footing for a while. After  a year or so my wife contacted them to re-start as it was. They advised if you re-start re-payment you won't be able to pause again what we advise is that you 'Overpay' which will put you exactly in line with where you would have been had we started repayment. My Wife agreed and they made the necessary calculations. We have 3 separate Mortgages with then 1,2 and 3 main and two small ones. anyway this was fine and they sent statements which my wife monitored and they illustrated that on the completion of the term £0 balance. After a few years they contacted us to say they made a mistake and that we owe much more money. My wife was distraught and we went through it (via Ombudsman). Ombudsman said a shortfall in service and there was compensation owed to us but that it was legal so we owed the larger sum but they owed us compensation. I beleive the compensation was something like 100's but we owed them 1000's - After much deliberation we proceeded.  The re-calculations were made (as before) they calculated exactly what it required and she continued along this line checking each statement as a line said at the close of account  and each statement conclude with on the final date of the term you will have a zero balance!

Recently they (SANTANDER formerly Alliance & Leicester) withdrew these final notes on the statement. So, we called to enquire and asked for the details in writing

This now states that at the end of the term there is a significant amount of monies owing.  We are not prepared to continually have Alliance & Leicester / Santander re-calculate  monies owed and add them to the statement which can only be monitored by request. Then, only to find significant other funds have been added!

jamielutz1987

@mikefox Good on you for seeing the first complaint through. It looks like you will have to go through the complaints process again to get some compensation.

In the original FOS ruling, was there anything that Santander was required to follow with regard to the information they provide on the statements going forward?

getmore4less

Its not hard to check the numbers with a simple mortgage calculator.

Amount owing, remaining term, rate will give you a payment.

Are you sure you paid at least the interest.

if you owed 1000s then the payments would have been far too small ie payment*no of months left was less than the total owed especially as rates went down 

Stick some numbers up with dates like

That first calculation when you looked at overpaying/repayment

The ones that are bothering you now, amount left to pay, full remaining term (Years and months), interest rate and current payment

mikefox

We complained to Santander Alliance and Leicester on the 25th and I said I didn't want a phone call I wanted to track an email thread. they said they will email me. Nothing so far. Going back to the issue : If we ignore the time when we went to the Ombudsman as settled (this was purely to highlight that they made mistakes before). The new calculations were made and my wife paid even in excess of the advised calculated sums (in overpayment) and although the BOE interest rate has fluctuated and the noted interest rate on the letters has changed from  1.24% Mar 2017 to 1.49% Jan 2018 to 1.74% Sep 2018 to1.24% Mar 2020 to 1.09 Apr 2020 the payments have remained the same. and they notified us every month letters carried the same statement that at the end of the term the loan will be repaid at the end of the term. We have had no notification of any re-calculation of payments or that payment was insufficient to cover the balance at end of loan. My wife noticed that they stopped posting these notes in Feb 20 that the repayment will be complete, so I called them. They said they would post it out which they did on the 18th ofJun 20 stating that now we would owe a further £4,500 (total all 3 loans) at the end of the term to pay. 

getmore4less

Not all lenders change the payment when the rates a change they only do it once a year.

what is not clear is why you(or your wife) failed to realise the payments were not covering the amount needed and if you won't post any useful info you won't get any help with that.

when you have a lender that has a history of messing up you don't just blindly follow what they are saying, you check the numbers yourself or get help if you don't know how to do it.