Any mortgage specialists around ?
Posted by: long-time-dead on 24 October 2005
OK, I know I should go speak to an IFA but I thought I would ask here first .......
I have just got my mortgage statement through and was having a look as I am nearing the end of my 2 year "Benefit" period and something struck me as wrong..........
When I took out the mortgage it was in two components. The following calculations are based on the offer that we accepted and we have written proof of this.
It is a capital and interest mortgage. Both components were taken out at the same time and form part of the one "agreement".
Component 1 - base rate of BoE plus 1.0% less 1.05% (ie. BR less 0.05%)
Component 2 - base rate of BoE plus 0.1%
I deduce that the difference in any month/period should be 0.15% regardless of what the base rate is.
My statement has shown the difference to be 0.9%
Now - I may well be in a position of benefit but could also be in a position of detriment. What I feel is clear is that the difference is incorrect.
I will go to the Bank concerned soon to ask a few questions but I was wondering :
1. If they are wrong (and I think they are), what is the position regarding refund by them or payment by me ?
2. If they are wrong and are due me money, am I entitled to compensation as they are in breach of the agreement and have been overcharging me.
3. If they are wrong, owe me money and I am enitled to compensation, have I any legal rights to suggest that they pay up the mortgage as a virtue of their defaulting of the agreement ? I believe that they reserve the right to repossess my home if I default ?
I am based in Scotland and all payments have been made and on time.
It's a good 'un for a boring Monday night !!!
I have just got my mortgage statement through and was having a look as I am nearing the end of my 2 year "Benefit" period and something struck me as wrong..........
When I took out the mortgage it was in two components. The following calculations are based on the offer that we accepted and we have written proof of this.
It is a capital and interest mortgage. Both components were taken out at the same time and form part of the one "agreement".
Component 1 - base rate of BoE plus 1.0% less 1.05% (ie. BR less 0.05%)
Component 2 - base rate of BoE plus 0.1%
I deduce that the difference in any month/period should be 0.15% regardless of what the base rate is.
My statement has shown the difference to be 0.9%
Now - I may well be in a position of benefit but could also be in a position of detriment. What I feel is clear is that the difference is incorrect.
I will go to the Bank concerned soon to ask a few questions but I was wondering :
1. If they are wrong (and I think they are), what is the position regarding refund by them or payment by me ?
2. If they are wrong and are due me money, am I entitled to compensation as they are in breach of the agreement and have been overcharging me.
3. If they are wrong, owe me money and I am enitled to compensation, have I any legal rights to suggest that they pay up the mortgage as a virtue of their defaulting of the agreement ? I believe that they reserve the right to repossess my home if I default ?
I am based in Scotland and all payments have been made and on time.
It's a good 'un for a boring Monday night !!!