Overpaid mortgage, have I been diddled
Discussion
Mortgage due last day of each month, I made a lump sum (35K) payment in on the 10th of this month, my interest charge is the same as it was the previous month.
Spoke to them (TMW) on the phone, they said no the new interest amount only comes through at the end of the next complete month.
Have I donated about £100 to their xmas party unwittingly?
Spoke to them (TMW) on the phone, they said no the new interest amount only comes through at the end of the next complete month.
Have I donated about £100 to their xmas party unwittingly?
You need to read the small print, or go right back to the beginning and work out exactly how your interest is charged.
ISTR my first mortgage in the 80s, your first payment was paying the interest in advance, the day you moved in, to cover the first month.
Later I had an offset mortgage where I think I was charged for whatever interest I'd accrued in the previous month (worked out on each net debt overnight), on about the middle of the next month?
ISTR my first mortgage in the 80s, your first payment was paying the interest in advance, the day you moved in, to cover the first month.
Later I had an offset mortgage where I think I was charged for whatever interest I'd accrued in the previous month (worked out on each net debt overnight), on about the middle of the next month?
It's a variable rate (base rate plus 1.95%) interest only mortgage.
The overpayment couldn't be done via their rather basic website, and TMW paperwork always seems very brief, can't see anything about the calculation in the Ts and Cs.
Definitely wasn't explicit in the phone conversation I had with them either, which was just a card payment out of my bank account.
Just seems all a bit fast and loose with my money.
The overpayment couldn't be done via their rather basic website, and TMW paperwork always seems very brief, can't see anything about the calculation in the Ts and Cs.
Definitely wasn't explicit in the phone conversation I had with them either, which was just a card payment out of my bank account.
Just seems all a bit fast and loose with my money.
Joey Deacon said:
I made a 10% overpayment to mine a few months ago, the exact same thing happened. I was charged the same the month I made the payment, and then next months payment was the new amount.
Done a bit of digging, seems to be in my Ts and Cs:
Not unreasonably, I was assuming the daily interest calculation to apply. Apparently not when it's in their favour, it then becomes a monthly calculation.
Can I sue them for unfair contract terms?
Hammersia said:
Not unreasonably, I was assuming the daily interest calculation to apply. Apparently not when it's in their favour, it then becomes a monthly calculation.
Can I sue them for unfair contract terms?
There are some mortgages where the repayment takes immediate effect, there are others where it takes place at the beginning of the following month.Can I sue them for unfair contract terms?
Hammersia said:
Sarnie said:
You'll struggle to get any joy given you agreed to the terms........
Definitely wasn't said in the phone conversation with them, so no, I haven't agreed to the terms. Should be slam dunk compo imho.
Unfortunately, the contract terms seem clear enough.
If you spoke to somebody at the mortgage lender before making the overpayment, then arguably they could have reminded you of the relevant clauses then. As they didn't, I'd try getting a goodwill refund of the interest that you feel you've overpaid, because in your opinion their customer service fell short. I wouldn't hold much hope of success, though.
I certainly wouldn't bother going legal. It'd be a waste of time.
If you spoke to somebody at the mortgage lender before making the overpayment, then arguably they could have reminded you of the relevant clauses then. As they didn't, I'd try getting a goodwill refund of the interest that you feel you've overpaid, because in your opinion their customer service fell short. I wouldn't hold much hope of success, though.
I certainly wouldn't bother going legal. It'd be a waste of time.
Hammersia said:
Joey Deacon said:
I made a 10% overpayment to mine a few months ago, the exact same thing happened. I was charged the same the month I made the payment, and then next months payment was the new amount.
Done a bit of digging, seems to be in my Ts and Cs:Not unreasonably, I was assuming the daily interest calculation to apply. Apparently not when it's in their favour, it then becomes a monthly calculation.
Can I sue them for unfair contract terms?
You can of course sue them but your chances aren't good.
Read the fine print, innit.
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