Incorrect DD means showing in arrears- who’s at fault??

Ruthmarr

Our mortgage provider stated in our mortgage summary we would have an inflated first payment as it includes the interest for the month of completion as per expected. However one year later we have received our annual mortgage statement and are showing as in arrears by the inflated amount because they never took that extra amount. We’ve only ever paid our standard monthly amount - they have never informed us we technically are in arrears because of their initial first payment DD error. But now I can’t look to change our mortgage because we are technically in arrears according to the system. They’ve never chased for the money. But now we don’t just have £400 to pay this?! 

What should my options be? Any help appreciated!

ACG

Have you checked your credit report? Is it showing as arrears on there? 
If not, can you switch to a new lender? 

K_S

@ruthmarr The two things I'd do first is -

- If you haven't already, put in a formal written complaint to your lender so that the clock starts ticking on the 8 weeks they have to look at the issue. Unfortunately sometimes it's the only way to get some attention. If you want to be handheld through the process, you could consider using the MSE Resolver tool.
https://www.moneysavingexpert.com/site/resolver/

- get a copy of your statutory credit reports or look up your MSE credit club report (Experian) and Clearscore (Equifax) to check if your mortgage account is showing to be in arrears or not. If your credit report is indeed showing you to be in arrears on your mortgage, that's a serious black mark and can make getting credit or remortgaging difficult.

andyf1980

Sounds like the lenders fault however I would soon notice if a direct debit was £400 less than it should have been.