Overcharged for a coronavirus mortgage break ?

Batesy1976

Spadger42 said:

The Relevance being if the bank are saying they are charging me for capital interest that's already within the mortgage and they are charging both ie the capital already within the mortgage and the new capital they've added then surely I should have received the capital ! But I take your point, I think this is a job for the financial ombudsman to look at. I'd be interested to know anybody else who's had a coronavirus mortgage break, not necessarily with Santander.

Good luck with the FOS, you haven't even got a response to your complaint yet.

Spadger42

Thanks for that Matt, I think I understand enough to know whats right and wrong, making 100% interest in a month is now being scrutinised by the law with Amigo loans, this is not the term of the mortgage issue, so patronising isn't helpful, this is an immediate balance change of 100%. Understanding the question asked is important, I took a 3 month mortgage break were I didn't pay 3 £970 Repayments and after the term of those three months my mortgage balance had gone up £2910. I accept the missed interest payments are added to the balance and are charged over the term of the mortgage, what I dont accept is the capital payment being added as it still remains within the mortgage and they are still making profit on it via interest as it already stands. If you understand that then you'd have to say they are profiteering or surely a 100% profit would be allowable under the law and Amigo and Wonga wouldn't have an issue ?

Batesy1976

Spadger42 said:

Thanks for that Matt, I think I understand enough to know whats right and wrong, making 100% interest in a month is now being scrutinised by the law with Amigo loans, this is not the term of the mortgage issue, so patronising isn't helpful, this is an immediate balance change of 100%. Understanding the question asked is important, I took a 3 month mortgage break were I didn't pay 3 £970 Repayments and after the term of those three months my mortgage balance had gone up £2910. I accept the missed interest payments are added to the balance and are charged over the term of the mortgage, what I dont accept is the capital payment being added as it still remains within the mortgage and they are still making profit on it via interest as it already stands. If you understand that then you'd have to say they are profiteering or surely a 100% profit would be allowable under the law and Amigo and Wonga wouldn't have an issue ?

What you are failing to understand, perhaps deliberately, is they aren't profiteering, this will be their way of accounting for your payment holiday.  I'm sure this will be explained to you when you get the response to your complaint

Edit:  And here is a page from a disinterested third party.

https://www.moneyadviceservice.org.uk/en/articles/what-to-do-when-your-coronavirus-loan-payment-holiday-has-ended

What happens when your payment holiday is over?

Your lender will get in contact with you if you are coming to the end of a payment holiday (also called a payment freeze) to discuss your options.

It will be in your best interests to discuss next steps with your lender. If they don’t hear back from you they will restart your repayments automatically.

Under normal circumstances, the payments missed will be added to your outstanding balance, along with the interest.

This means your monthly repayments will be higher than before. How much higher largely depends on how long you have left on your loan term.

onlyfoolsandparking

Not 100% sure on this but off the top of my head (and thinking about it for about 30 seconds) I don't believe OP is being 'ripped off' as the 3 months payment holiday has surely reduced the term by 3 months therefore the lender putting the full monthly payments back is the correct way to 'catch up'. Could be wrong but it doesn't look suspect to me. 

Billy_B_North

Spadger42 said:

I just did Billy, within roughly £40, I'd have to order statements as Santander only go back a year from what I can find, essentially I went from 161k to 164k and even if you assume one payment that was due was added to the balance that still leaves over 2k. I think they've made a mistake if I'm honest, I doubt it would be across the board because someone would have picked it up.

No, you gave a “for example” set of figures, and didn’t list the term or the rate.

You seem to not want to share the relevant figures, so I really can’t help.

Billy_B_North

Spadger42 said:

Thanks for that Matt, I think I understand enough to know whats right and wrong, making 100% interest in a month is now being scrutinised by the law with Amigo loans, this is not the term of the mortgage issue, so patronising isn't helpful, this is an immediate balance change of 100%.

Don’t be ridiculous, they did not add  £100,000 onto your £100,000 balance.

You seem to be upset that (for example, as you are withholding the actual figures) you’ve skipped three £1,000 payments and that you still have to pay that £3,000 back as well as a bit of extra interest.

It seems as though you imagine that you should be let off with payments from what you are writing, not that you have deferred them.

Spadger42

Ill put this plane as I can make it because people are getting the wrong ideas, picking up one piece of the story and ignoring the other,
I took a 3 month mortgage holiday for which they increased my monthly payment by £15 and that was agreed before I took the break, they then added the full mortgage payment of £970 over 3 months to the balance a total of £2900 on top of the balance, I accept the interest being added as I didn't pay it, I don't accept the £700 odd pounds capital repayment because that is still within the balance of the mortgage, Batesy you didn't read the original post or thread I should say, I have an agreed £15 pounds for the missed payments over the term within place, I'm paying that, my argument is with the capital being added on when it is already within the balance. I said at the beginning of this to bare with me because it's complicated if you don't get a grip of it all. I have an agreement in place to repay the 3 missed payments, my mortgage term hasn't increased they've added the missed interest payments to my balance which is correct as I didn't pay them but they have also added the capital payments which I have an agreement for my mortgage went up to cover the three payments. BTW I have no problem with the ombudsman, I've used him on several occasions but I am waiting on Santander's reply first. The issue and only issue is they have added the capital as stated in a previous post, it's their policy. Now I'd argue this as profiteering or at the least not thought through properly.
The fact being they have allowed 3 months of a £970 payment break and charged me 3x£970 for having it as well as that already within the mortgage so in effect i've gone backwards nearly £3000 when it should have been just the interest, I know it's difficult to follow, it took me a while to understand it had happened.
Lets say its a credit card holiday of 3 months and you were supposed to be paying £400 a month, wouldn't you be a pxxxd off if your balance had gone up £1200.

Spadger42

no problem Billy, Cheers, I see no relevance to the figures being accurate or not when your talking in the thousands, thanks for your input anyway, I did mention that I'd have to order my balances because Santander delete them offline after a year. I think I've given more than enough information regarding figures and it putts me on guard a little when people start specifically asking questions about exact amounts, thanks anyway.

Batesy1976

Spadger42 said:

Ill put this plane as I can make it because people are getting the wrong ideas, picking up one piece of the story and ignoring the other,
I took a 3 month mortgage holiday for which they increased my monthly payment by £15 and that was agreed before I took the break, they then added the full mortgage payment of £970 over 3 months to the balance a total of £2900 on top of the balance, I accept the interest being added as I didn't pay it, I don't accept the £700 odd pounds capital repayment because that is still within the balance of the mortgage, Batesy you didn't read the original post or thread I should say, I have an agreed £15 pounds for the missed payments over the term within place, I'm paying that, my argument is with the capital being added on when it is already within the balance. I said at the beginning of this to bare with me because it's complicated if you don't get a grip of it all. I have an agreement in place to repay the 3 missed payments, my mortgage term hasn't increased they've added the missed interest payments to my balance which is correct as I didn't pay them but they have also added the capital payments which I have an agreement for my mortgage went up to cover the three payments. BTW I have no problem with the ombudsman, I've used him on several occasions but I am waiting on Santander's reply first. The issue and only issue is they have added the capital as stated in a previous post, it's their policy. Now I'd argue this as profiteering or at the least not thought through properly.
The fact being they have allowed 3 months of a £970 payment break and charged me 3x£970 for having it as well as that already within the mortgage so in effect i've gone backwards nearly £3000 when it should have been just the interest, I know it's difficult to follow, it took me a while to understand it had happened.
Lets say its a credit card holiday of 3 months and you were supposed to be paying £400 a month, wouldn't you be a pxxxd off if your balance had gone up £1200.

Whether people would be "pxxxd" off or not is irrelevant. What matters is if this is the correct way of accounting for a mortgage payment holiday, and it is.

Spadger42

Billy 100% of £3000, no more input thanks, I think your being deliberately daft.