" Mis-calculation Overcharges"
A simple miscalculation, either from the outset when your first payments are made or when a product change occurs, can lead to errors in the interest charged, this in turn can affect the overall mortgage balance.
A mortgage audit can bring to light these errors and the miscalculation of interest overcharges made, which should never have occurred.
European Consumer Protection Law.
"Why is 2012 a pertinent year ?"
After the Financial crisis in 2008, when the mortgage market slowed down, it has been stated by a legal technology group that some lenders grew there revenue ( income ) by increasing the difference between there own borrowing costs and the rates they charged the customer.
In 2012 this policy was deemed to be unlawful under the European Consumer Protection Law. Lenders updated there terms & conditions to ensure they were compliant when a new mortgage was taken out, however, they could "not update" the terms on historical mortgages (pre 2012) and these payments can be investigated.
Mortgage Data
"The Banks Computer System"
Millions of mortgages are taken out in the UK, unfortunately, many banks have not updated their systems to cope with the demand, and, with amalgamations of lenders and the acquiring of Banks to consume other lenders, it is no surprise errors have occurred that are not in line with the Terms & Conditions.
Aging computer systems are in need of continual maintenance, and, with many contractors' lack of core industry knowledge, it was inevitable that interest rate errors and overcharges would sooner or later transpire.
Mathematical logistics are the make-up of Mortgage payment calculations and a mistake or oversight can lead to the customer being overcharged on their mortgage account.
What is a Mortgage Audit?
A Mortgage audit is a forensic investigation of your mortgage statements. If you have been a victim of overcharging the audit will unearth the overpayments made to the account.
These overpayments/charges can come in the form of miscalculated arrears payments, deliberately sustained high variable rate interest, excessive arrangement fees, or quite simply a computer error to name a few examples.
These payments are contrary to the terms & conditions offered with your mortgage and are a legal " Breach of Contract".
Many individuals get this type of claim confused with Mortgage "mis-selling", which is the advice given when recommending the mortgage, this is deemed as "negligence".
Mortgage "overcharging" is a totally different type of claim, where, a legal breach of contract has occurred and payments in addition to the agreement have been charged not in line with the terms & conditions.
Claim Criteria
Do I Qualify?
Initial qualification - your mortgage is in force or has been redeemed within the last 6 years.
Recommended Criteria for potential qualification:
- Minimum mortgage amount £60,000
- Mortgages commencing from 1995
- Mortgages that have run for a minimum of 6 years
Overcharging would have more likely occurred if:
- A variable-rate was paid between 2008 and 2012
- You had an offset/drawdown mortgage facility
- Your mortgage was with a "sub-prime lender"
- There have been arrears on the mortgage
- You paid excessive charges
- Your mortgage had been sold on to another lender
- You have taken a payment holiday
- You are a mortgage prisoner
The above are likely occurrences, these exclude mortgages which could have been overcharged merely through a computer or input error. We highly recommend you contact us as soon as possible to rule out the possibility you have been overcharged and due a refund.