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Joshua, Lawyer
Category: Law
Satisfied Customers: 26070
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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I paid a lump sum of £12000 off my part interest and part repayment

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I paid a lump sum of £12000 off my part interest and part repayment mortgage with the Nat west which reduced it to around £15000 and then transferred the remaining balance to a wholly repayment off set mortgage with repayments at around £215 a month...I then refinanced the mortgage in 2010 for a further £18000 bringing the balance to about £32/33k...and as the interest rates had gone down I continued to, as I thought to over pay by about £30 a month. Then out of the blue I received a letter from the bank saying I am not on track to pay my mortgage off by 2025...they had still got me on part interest only and part repayment from 6 years ago...they say I have under paid by £29 per month for the past 6 years and have credited my mortgage account with £1500 as it was their mistake...they are keen to make me go away after I refused to reapply for my mortgage again and they have subsequently increased my repayments to £239 a month even though I have told them I cant afford this and even though they have credited my account with the underpayment I have not slept with the angst of all this and they keep ringing me and offering me compensation and asking is there anything more they can offer me but I dont know to do...could you advise me please
Hello and thank you for your question. I will be very pleased to assist you. I'm a practising lawyer in England with over 10 years experience.

  1. I am sorry to read of the circumstances. May I clarify that they have offered you £1500 as compensation by way of acknowledgement of their mistake please?
  2. If so do you accept this is adequate or consider they owe you more?
  3. Is the remaining issue just the repayment amount or is it that and the fact that you consider that you are entitled to further compensation?
Customer: replied 2 years ago. £1500 is not compensation, they have credited my mortgage account with this amount for their error 6 years ago it is the amount I am supposed to have underpaid for the last 6 years. They have admitted it is all their fault that my mortgage wasnt transferred to an offset repayment mortgage. The interest from my savings was supposed to go towards my repayments but I'm assuming this has been swallowed up by the interest only part of the mortgage.

2.I do consider they owe me more..they are now trying to say when I refinanced the mortgage they didnt increase the repayments accordingly but I distinctly remember when I went into the branch them saying as I had been overpaying there would be nothing more to pay as I had kept my repayments the same even after paying the £12000 off.

3.They are telling me I am due compensation because it is a serious issue and had to be dealt with at a high level.

Many thanks for this. based upon what you say, the bank appears to be guilty of negligence and/or mal administration. As a result of this, you are entitled to be put in the position you expected to begin based on what was agreed and you may also be able to claim compensation for the distress and inconvenience as well as any loss the banks errors have caused you.The first step is to schedule in a letter any losses you consider you have incurred as a result of the above together with your requirements in terms of a monthly repayment figure you can afford and finally in terms of any compensation you consider to be due to you as a result of the distress and inconvenience the above has caused you.from there, you may consider contacting the bank's complaints department in writing to set out your concerns and your above proposals for settling the matter. Is required to reply to you in accordance with the timescales set out in's complaints procedure. If you are not satisfied with the banks response, you can refer your complaint to the financial ombudsman service which is an independent service that can review your complaint independently of the bank and make a determination including where they find it appropriate, to order compensation is paid to you. There is no charge for their service. determination of the financial ombudsman his binding upon the bank though it is not binding upon you unless you choose to accept it. from what you say, the bank appears to be ready to negotiate with you and you may find you are able to settle your differences directly with the bank without the need for ombudsman involvement but it remains a useful option should you be unable to resolve matters directly with the bank using the above process.I hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
Customer: replied 2 years ago.

I have done all that you have advised as above...I do not have to go down the ombudsman route as I have explained they are offering me compensation for the distress and inconvienience...but they want to know how much I want?

I agree that you would hope not to have to approach the Ombudsman. As above one would hope you can resolve the matter amicably between you and the bank as you suggest. The Ombudsman remains a useful fall back positino though if you are not despite your best efforts able to resolve matters to your satisfaction. As regards ***** ***** you might ask for the below is the guidance the Ombdsman uses to award compensation for distress. You may consider using this as a guide for how much to ask for as compensation for distress.I hope the above is helpful? Can I help you with anything else or has the above answered your questions satisfactorily? If you could drop me a quick message to let me know I'd be very grateful. moderate (less than £500)The business only sorted out a minor problem after the consumer had written and phoned a few times – causing frustration and unnecessary inconvenience.The business failed to get the consumer's address right – despite a couple of requests – for two months. 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