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Mortgages Has A Problem!
There is a high possibility your mortgage payments
have been miscalculated!!
Difficult to believe but very true!
You could be paying too much!!
80-85% of mortgages are miscalculated!
It costs nothing to get your mortgage checked, in fact looking at the figure above you would be a fool not too!
How welcome would a cash windfall be right now in the form of a potential substantial refund?!
Our team of mortgage experts and qualified solicitors are ready to help you get a refund now if one is due.
We Do Not take an upfront fee. If there’s No Win there’s No Fee!
We have a 95% Claim Success Rate!
A mortgage audit can uncover any overcharges or mis-calculations by lenders. This involves examining lender statements and disclosures in depth with the result that any mis-calculations that may lead to an overcharge are brought to light. These miscalculations can lead to errors in the interest charged, the level of monthly repayments and effect the final mortgage balance.
Mortgage audits also help uncover instances of illegal, excessive fees that violate regulations. It is a way of exposing predatory lending practices and can be of great help if you are a homeowner that is facing foreclosure or seeking a modification of your mortgage or loan.
There are many different types of mortgages: Fixed rate, interest-only, adjustable rate and home equity loans. It is vital to remember that any of these can fall foul of errors that result in you being overcharged.
A mortgage audit is quick and easy to organise and carry out. Not only will you, as a homeowner, feel more confident that the lender’s calculations are accurate, but if you have been overcharged the audit will make it easy for you to get your money refunded.
The audit report is very detailed and you will see immediately when you receive it if there have been any excessive charges.
Do You Qualify?
1st Jan 1994 - 1st Jan 2013
If you started your mortgage in the 19 years between the above 2 dates you’re mortgage is eligible for checking.
All types of mortgage; interest only, self certificattion, remortgages etc. all are eligible to be checked as long as the mortgage amount is above £60,000.
Residential Or Commercial
Whether it’s a Private mortgage, Buy to Let or a commercial mortgage all are eligible to be checked for issues.
Mis-Calculated Mortgage Payments
Mortgage providers, including banks and building societies will normally provide the borrower with detailed information, this will focus on information about payment calculations. The customer will then receive monthly mortgage account statements and when the mortgage ends they should expect full details of the mortgage payments, interest charge and so on.
However, there have been many instances where mortgage lenders have not calculated the payments correctly and then failed to inform the borrower of their mistake. Some of these miscalculations happen right at the very start of the mortgage set up process and these can cause serious effects on the consumer’s future payments, ultimately having the potential to turn into substantial sums of money.
The Customer May Be Unaware Of Any Errors
Most people are quite simply not aware that any problem exists, and often when they are they would not have the knowledge to be able to work out the sums involved. If you think you have been the victim of a mistake of this kind then contact the specialists as soon as possible.
The documentation that comes along with a mortgage is extremely complicated, so it is not surprising that the average person can’t understand everything in it. Errors can be made by chance or even deliberately and it is likely that the mortgage holder won’t be aware of these so you really need someone on your side to make sure you are not being overcharged.
Professional Help Is Ready And Waiting
Just dial 0800 756 3986 or complete our short overpayment calculator form below and our specialists solicitors will take over from there. Our many years of experience and knowledge of the financial and banking sector means we are able to go through the documentation with a fine-tooth comb. We know what to look for, so if miscalculations exist it is highly likely we will find them.
Around 85% of the mortgages that we check have errors. Some of these have been minor but many were significant. In fact, it is surprising how many mortgages are miscalculated. Finding the errors is never easy but because of our in-depth knowledge we are well placed to unearth them.
Most people never know if they are paying too much; the mortgage repayments are made and no one really thinks to question it. However, this is one of the most significant and expensive purchases most of us ever make – charges must be fair and they must be accurate.
Instead of blindly paying the charges it is well worth calling us on 0800 756 3986. We are here to help check the accuracy of your payments and make sure you receive any compensation you may be due. Over the last few years we have mounted many successful claims for clients who have been overcharged when buying many different financial products, and we are available today to discuss what we can do for you.
Mis-Calculated Mortgages Are Common
Arrears may have featured on the mortgage
The Financial Services Authority, who were regulating mortgages in 2010, gave banks strict guidelines for dealing with mortgage arrears and charges. This had followed a 2-year review of the banks’ practices and yet in 2016 in a similar review by the Financial Conduct Authority it appears that 750,000 borrows had lenders who still did not adhere to the guidelines and who had made capital on their arrears. This leads to struggling mortgage consumers being forced into accelerated repayments.
After discussions with the FCA in 2013, the Lloyds Banking Group set up a fund to cover errors in mortgage handling and claims for inappropriate charges. The sum of £283 million was to cover inappropriate handling and fees during the period January 2009 – l January 2016.
Up to 590,000 people, customers of the UK’s biggest bank, could have been affected. The FSA fined GMAC-RFC, now known as Paratus AMC, £2.8 million in 2009. The bank had been found to be mishandling customers who were in arrears, those affected totalled 46,000 and the compensation bill was £7.7 million.
The original mortgage lender may have been taken over by another provider.
In 2007 there was a financial crash leading to mortgages being sold to other lenders. Northern Rock is a key case where mortgages were transferred first to Northern Rock Asset Management with some later being sold to Landmark. Other notable cases included the collapse of Edeus in 2008 with their mortgages returning to it’s major funders – Wave and DB Mortgages. However, not all lenders use the same calculation or charging models leading to extra cost for the customer.
There were 19 reductions in the Bank Of England’s base rate since February 2000
Ten of these took place between 2007 and August 2016.
As rate drops occur the rules state that, within a certain time, the benefit must be passed to the customer. The shortest of delays could lead to customers having to erroneously pay extra interest. If this happens multiple times in the life of a mortgage, the sums can become significant.
Mortgages can initially be repayment but then converted to interest only, and vice versa
Any alternations to the type of mortgage repayment type can lead to interest overpayments and this is more likely if the change occurs in the middle of the month and the payment is made at the start.
During the mortgage term, the borrowing rates have frequently moved backward and forward...
…between fixed rates, tracker rates and the standard variable rate.
If the rate change is not applied quickly it leads to additional interest. The more often it happens, the more significant these miscalculations becomes.
Excess charges have been applied by mortgage lenders...
…far in excess of those stated in the terms and conditions of the mortgage or that are against FSA & FCA guidelines.
Multiple small errors or repeated charges become significant sums when they continue over the term of a mortgage.
The Flexible Repayment Mortgage
Clydesdale Bank were first to the market with the mortgage that allowed annual reviews. The idea was that mortgage payments could be increased to account for inflation, or if the borrower had an increase in salary. The customer would benefit by reducing their payment term.
However, the bank miscalculated the payments with detrimental effects on over 42,500 mortgages. As a result they were fined £8.9 million by the FCA in 2013.
Still Not Convinced?
Consider The Banks Varied & Ageing Computer Systems
A banks key aim is to make money for shareholders and this is the focus of their business effort. Often this leads to short term thinking where the CEO’s concentrate on their own personal worth, and delivering the goods now.
As a result many banks just didn’t repair or replace old computer systems because the costs associated with doing so are huge. In 2008, Nationwide decided to transform their ageing systems for the princely sum of £1billion but none of the other major banks, apart from Santander, have taken account of the need to do this.
The other issue is that Banks in the UK are always looking to consume other banks. As they acquire these they don’t bother to replace or integrate their systems. There are rumours that one of the popular High Street Banks now runs around 40 systems!
What is more worrying is that running 12 legacy systems seems to have become the industry standard. There is little continuity in contractors either which can often lead to a lack of knowledge and understanding when it comes to core issues.
This lack of commitment to resolve IT issues has led to costly experiences for RBS, Santander and the Lloyds Banking Group. The FCA Head of Enforcement in 2011, Tracey McDermott, spelled it out for them; that if they do not address these issues then ultimately their customers will suffer. Despite that, banks have still done little to address the situation, even after the FCA has specifically contacted them about this.
Lloyds TSB has had an increase in outsourcing fees which are now at an enormous £122million. Despite this and despite leaving the Lloyds Banking Group in 2013, it continues to use the same technology.
Looking at the background it is easy see how possible it is, with the millions of mortgages taken out in the UK, that errors have been made, and that charges have not all been in accordance with original terms and conditions.
Of all mortgages checked to date 80-85% contain errors. This is going to cause a lot of issues for the banks and it was all totally avoidable.
Genuine figures from recent client refunds.
- A mortgage taken out in June 2005 for £148,500
- A mortgage taken out in May 2003 for £72,900
- A mortgage taken out in May 2008 for £370,000
Our Professional Team Of Mortgage Experts & Solicitors Are Ready To Help Now
- We do not take an upfront fee.
- Our fee comes from a successful claim only, and we work diligently on each case no matter how long or complicated it may be.
- We take care of everything for you all you need to do is provide the relevant information and we will take care of the rest.
- Once the case is successful you receive your refund payment before we take our fee.
No Win No Fee
1 in 3 Mortgages Has A Problem
80-85% of Mortgages are Miscalculated!
If you’ve ever been in arrears you really must get your mortgage checked!
It costs nothing to have your mortgage checked and you could be due a refund of thousands.