Overcharged on mortgage for 8 years

jpritch

Hi All
Hope a financial wizz can help...
I’ve just been informed that I have been overcharged on my mortgage since 2012 each month total of £4500. Bank has admitted its there mistake. As this charge was each month since 2012 until last month and not my choice do i have recourse to a claim for compensation ? And if so how the heck do I calculate an amount ? Averages around £45 per month but of course was more in 2012 reducing gradually to around £30 per month this year.
thanks in advance

MWT

What is the bank proposing to do?

grumiofoundation

Overcharged as in more interest paid than should have been or overcharged as in paid off more capital than you wanted?

As above what have the bank proposed to do.

jpritch

Hi MWT 
They re paid £121 in interest charges and of course they are saying its all good because we have paid £4500 more off our mortgage. But we didn’t chose to ! 

jpritch

Hi Grumiofoundation
the payments were payed as interest

Grabs39

jpritch said:

Hi MWT 
They re paid £121 in interest charges and of course they are saying its all good because we have paid £4500 more off our mortgage. But we didn’t chose to ! 

Have you asked if they'll give you back your £4500 in exchange for increasing the amount on your Mortgage by £4621?

jpritch

Hi Grabs39
they have used the extra interest they charged (Monthly) to reduce the overall mortgage by the total they overcharged £4500.... if that makes sense ! (It doesn’t to me as effectively ) I’ve been overpaying for some 8 years without my consent which they have no decided to reduce from my mortgage total capital and interest)

Thrugelmir

You've overpayed not been overcharged. There's a difference. Overpaying has been to your benefit. 

theoretica

Paying off debt faster is usually considered a good thing - can you prove that it was not in your case?  Eg that you had higher interest debts that you would have repaid in preference and so the mortgage company have cost you money?

jpritch

Thanks Thrugelmir
And of course your right, the issue is that I didn’t chose to and during those 8 years of having no choice that monthly amount would have been very useful towards other debt accrued whilst struggling to ensure the mortgage was paid. 
I gues the main issue for me is that it was taken as an “interest charge” on the mortgage and replayed as capitol and interest in a lump sum.

jpritch

Thanks Theoretica
i do relies this has come out in my favour but yes to your question i have plenty of evidence that i have paid high interest during that period on other debts, i owe more on other credit than is outstanding on the mortgage. It’s been about keeping a roof over our heads as a priority. Making the due payments on the mortgage would have been fine and the xtra i have paid out would have helped big time on other debts.