Dispute with high street bank / default now my mortgage is 10.3%

Izzey1980

Update - 

Barclays has admitted a banking error, and the default should not have been recorded because procedures were not followed. They paid £200 as compensation to me.

The main factor is that my credit file is recorded correctly, so I am relieved by this. 

However, the payment made is not sufficient for the inconvenience, distress, time and financial costs caused.

I have spent in excessive of 60 hours dealing with this, and on top of this, I have incurred substantial costs on my mortgage payments from £950 - £2400 pcm, which will continue until I have a new mortgage offer.

I stand by the idea that closer scrutiny of people's credit files is required; otherwise, the financial institution must pay reasonable compensation for the cost incurred on the affected party.

I wish all those other people who are in a similar situation. Good luck.

mcpitman

Oh what a surprise, they offered you £200 and a sorry.

Doubtful you will be getting any more compo for the "60 hours", and likely the answer to "it costs me more now" will be "ok, you can remortgage".

Good luck.

Izzey1980

mcpitman said:

Oh what a surprise, they offered you £200 and a sorry.

Doubtful you will be getting any more compo for the "60 hours", and likely the answer to "it costs me more now" will be "ok, you can remortgage".

Good luck.

I am trying to understand why I should remortgage to offset the costs. 

I would have a mortgage offer in time before I was moved onto a variable rate.

This has occurred because of the unjustified default marked on my account; it will take three months until I have a new product. Therefore, four months at circa £1450 PCM equates to £5,800 as the direct cost, which I would seek.

Potbellypig

mstevensdevelopments said:

mcpitman said:

Oh what a surprise, they offered you £200 and a sorry.

Doubtful you will be getting any more compo for the "60 hours", and likely the answer to "it costs me more now" will be "ok, you can remortgage".

Good luck.

I am trying to understand why I should remortgage to offset the costs. 

I would have a mortgage offer in time before I was moved onto a variable rate.

This has occurred because of the unjustified default marked on my account; it will take three months until I have a new product. Therefore, four months at circa £1450 PCM equates to £5,800 as the direct cost, which I would seek.

Taking Barlcays to court for the difference in an offer you may or may not have recieved is going to be laughed out. Spend your time and energy on something more productive.

mcpitman

mstevensdevelopments said:

mcpitman said:

Oh what a surprise, they offered you £200 and a sorry.

Doubtful you will be getting any more compo for the "60 hours", and likely the answer to "it costs me more now" will be "ok, you can remortgage".

Good luck.

I am trying to understand why I should remortgage to offset the costs. 

I would have a mortgage offer in time before I was moved onto a variable rate.

This has occurred because of the unjustified default marked on my account; it will take three months until I have a new product. Therefore, four months at circa £1450 PCM equates to £5,800 as the direct cost, which I would seek.

You remortgage to a deal applicable to your credit rating now you have no late payments or default showing.

Mortgages are priced loosely on "rate for risk", your current mortgage payment is expensive because at the time of application you had late payments/defaults. No you have cleared up your credit file, re-apply for a lower rate mortgage.

Also 4 payments of £1,450 = £3,800, not the £5,800 you have mentioned.

silvercar

mstevensdevelopments said:

mcpitman said:

Oh what a surprise, they offered you £200 and a sorry.

Doubtful you will be getting any more compo for the "60 hours", and likely the answer to "it costs me more now" will be "ok, you can remortgage".

Good luck.

I am trying to understand why I should remortgage to offset the costs. 

I would have a mortgage offer in time before I was moved onto a variable rate.

This has occurred because of the unjustified default marked on my account; it will take three months until I have a new product. Therefore, four months at circa £1450 PCM equates to £5,800 as the direct cost, which I would seek.

The extra costs will be the difference between the new rate that you could have got 4 months ago and the rate you can actually get now x say 2 years of payments, plus the difference between the new rate you could have got 4 months ago and the £2400 you've actually been paying. Even with a clean credit record, you may not have been able to get £950 a month.

Izzey1980

mcpitman said:

mstevensdevelopments said:

mcpitman said:

Oh what a surprise, they offered you £200 and a sorry.

Doubtful you will be getting any more compo for the "60 hours", and likely the answer to "it costs me more now" will be "ok, you can remortgage".

Good luck.

I am trying to understand why I should remortgage to offset the costs. 

I would have a mortgage offer in time before I was moved onto a variable rate.

This has occurred because of the unjustified default marked on my account; it will take three months until I have a new product. Therefore, four months at circa £1450 PCM equates to £5,800 as the direct cost, which I would seek.

You remortgage to a deal applicable to your credit rating now you have no late payments or default showing.

Mortgages are priced loosely on "rate for risk", your current mortgage payment is expensive because at the time of application you had late payments/defaults. No you have cleared up your credit file, re-apply for a lower rate mortgage.

Also 4 payments of £1,450 = £3,800, not the £5,800 you have mentioned.

You made me double check! £1450 x 4 = £5,800? Anyway thanks for your advice.

mcpitman

Izzey1980 said:

mcpitman said:

mstevensdevelopments said:

mcpitman said:

Oh what a surprise, they offered you £200 and a sorry.

Doubtful you will be getting any more compo for the "60 hours", and likely the answer to "it costs me more now" will be "ok, you can remortgage".

Good luck.

I am trying to understand why I should remortgage to offset the costs. 

I would have a mortgage offer in time before I was moved onto a variable rate.

This has occurred because of the unjustified default marked on my account; it will take three months until I have a new product. Therefore, four months at circa £1450 PCM equates to £5,800 as the direct cost, which I would seek.

You remortgage to a deal applicable to your credit rating now you have no late payments or default showing.

Mortgages are priced loosely on "rate for risk", your current mortgage payment is expensive because at the time of application you had late payments/defaults. No you have cleared up your credit file, re-apply for a lower rate mortgage.

Also 4 payments of £1,450 = £3,800, not the £5,800 you have mentioned.

You made me double check! £1450 x 4 = £5,800? Anyway thanks for your advice.

Ahh, dumb moment by me, apologies.