I have a interest only mortgage Can a bank open a repayment account without my instruction

Glenee123

getmore4less said:

Glenee123 said:

ACG said:

If that is your question then then I would not think that is legal. 
But I am 99% sure you are not asking the right question as I do not believe a bank would just open up a new account, unless in 2007 that was the only way they could transfer you from repayment to interest only, in which case it sounds like you gave them permission. 

Hi ACG
Yes that is my question
The facts are how I stated above based on what I have said, I am asking is it legal for the bank to open a repayment account or even reopen in a customers name without out any agreement to do this, done without their knowledge or consent? the initial repayment mortgage ceased and there was no credit to capital element in 1st month after closing then the following month an account was opened with credit to the capital of .35p which went noticed by me for years.
I felt this type of thing may have happened to someone else in the forum on this website or someone would know if the bank has the right to do this.
Thanks for any advice

what was the balance in 2007 and now? If you are saying the capital element is 35p then that will just be an adjustment it happens on interest only mortgages with a set payment. as said you are not being clear. The mortgage is the security of the property, the account that sit under that security can change. I suspect what has happened you converted from repayment to interest only. The payment was not exact so there was a small(tiny) element of capital they are not interest only or repayment accounts they are just accounts that receive a payment(based on a calculation) the interest gets added and the payment gets taken off(often on the same day so you only see one change not two. The costs seem to have been added as separate sub accounts on a repayment basis. More details of the account rates payment needed

Hi
After converting, Is it legal for a bank to open a new account or reopen a repayment mortgage or repayment loan for the purpose of adding solicitors cost without any agreement with the customer, without the customer's consent or knowledge?
There would be absolutely no point in asking the question with the question not matching the actual circumstances.

Thanks

MWT

Glenee123 said:

After converting, Is it legal for a bank to open a new account or reopen a repayment mortgage or repayment loan for the purpose of adding solicitors cost without any agreement with the customer, without the customer's consent or knowledge?

Highly unlikely that it would have been without customer's knowledge unless customer did not read what they were being sent at the time, but if you put yourself in a position where the lender has to start repossession proceedings then yes, there will be costs that they are entitled to recover from you and yes that may be by way of opening a sub-account to contain those costs while you repay them...

Perhaps it would help if you actually gave us the whole story instead of cherry-picking bits and pieces to frame a question in a way that you feel might lead to your desired response...

Given this was all many years ago, what is the current situation that has prompted you to raise this now?

getmore4less

You need to answer questions getting asked. 


How much did your payment on the main mortgage change with this mystery change from interest only to repayment calculation. 

What agreement did you have to cover these extra legal costs? 

There will be terms covering what happens to costs when legal proceedings to reposess start. 

Glenee123

getmore4less said:

Glenee123 said:

ACG said:

If that is your question then then I would not think that is legal. 
But I am 99% sure you are not asking the right question as I do not believe a bank would just open up a new account, unless in 2007 that was the only way they could transfer you from repayment to interest only, in which case it sounds like you gave them permission. 

Hi ACG
Yes that is my question
The facts are how I stated above based on what I have said, I am asking is it legal for the bank to open a repayment account or even reopen in a customers name without out any agreement to do this, done without their knowledge or consent? the initial repayment mortgage ceased and there was no credit to capital element in 1st month after closing then the following month an account was opened with credit to the capital of .35p which went noticed by me for years.
I felt this type of thing may have happened to someone else in the forum on this website or someone would know if the bank has the right to do this.
Thanks for any advice

what was the balance in 2007 and now? If you are saying the capital element is 35p then that will just be an adjustment it happens on interest only mortgages with a set payment. as said you are not being clear. The mortgage is the security of the property, the account that sit under that security can change. I suspect what has happened you converted from repayment to interest only. The payment was not exact so there was a small(tiny) element of capital they are not interest only or repayment accounts they are just accounts that receive a payment(based on a calculation) the interest gets added and the payment gets taken off(often on the same day so you only see one change not two. The costs seem to have been added as separate sub accounts on a repayment basis. More details of the account rates payment needed

Hi
I think you are not understanding my question.
My specific question is: Without there being any agreement between me and the bank, Can a bank open a new account or reopen a repayment account in my name for whatever purpose without my consent or knowledge?
The credit of .35p was only mentioned to point to why I had not noticed the account. in Jan 2009 the credit to capital was 13.99.and so on

getmore4less

I understand your question but I don't think you understand what was done or how mortgage accounts work. 

Accounts are not interest only or repayment. 

The calculation of the payment is what is important.
That can be based on interest only or a repayment schedule. 




What was your balance and payment? 
Before and after it changed. 

dunstonh

My specific question is: Without there being any agreement between me and the bank, Can a bank open a new account or reopen a repayment account in my name for whatever purpose without my consent or knowledge?

Your specific question has been answered a number of times.  However, your specific question is not in context with your scenario as you were an existing borrower.   Sub accounts or conversions requiring an account change are not the same as opening a new account.

Also, the addition of "reopen" to your question, then the answer to that is yes.  If an account was closed in error or it was found that repayment wasn't in full after the even then it can be reopened until settled.