Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Legal matters

Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.

underpayment on mortgage, their fault

5 replies

MamaGoblin · 19/01/2010 13:05

This isn't a big issue really but thought I'd post for advice here. DH and I were recently in a position whereby we were able to pay off DH's mortgage on this house (family bequest). Which is fab, obviously. DH anticipated some problems in paying it off finally because a couple of friends who've done this also found it strangely hard to pay the balance on their mortgages - I guess lending companies don't like it when you stop paying interest! Strange, that.

Anyway, he requested the total balance from his mortgage company, which begins with an H, and they duly told him, in writing. He then paid this amount off in full and thought it was sorted.

No - a couple of weeks later, he got a letter saying he still owed just under a thousand pounds! He queried this, several times, not getting much of a response from the person set to deal with it. This took about 3 months. Finally, today, he got an email from her and she said - 'yes, you do still owe us this amount (plus interest on it) because it's interest accruing to last year's mortgage payments which (because I'm daft and not very good at my job) I forgot to add onto the total I quoted you earlier, when you first asked for the total balance owing. Sorry, you still have to pay it (and the interest owing on it).' (paraphrased, but not very much!)

What DH is wondering is, given that the mortgage company quoted him one sum in writing when he asked for it, and he paid that sum, is he legally obliged to pay this extra amount, seeing as it was their fault it wasn't added to the total originally quoted? I think he does - it might be their error but it's still part of the agreed mortgage. He thinks it's worth showing this to a solicitor. I'm presuming a solicitor would charge for the initial consultation and then say 'sorry mate, you have no case'. Am I wrong?

OP posts:
Bramshott · 19/01/2010 13:15

I would have thought that he might have a good case for not paying the interest which has accrued between the date he asked for the balance and now!

RoyaltyIsMyOnlyDelusion · 19/01/2010 13:17

This reply has been deleted

Message withdrawn

RoyaltyIsMyOnlyDelusion · 19/01/2010 13:20

This reply has been deleted

Message withdrawn

MamaGoblin · 19/01/2010 13:58

Well, I agree that he is certainly not liable for the interest on this amount! He tried very hard to chase it up before the next monthly payment date came around, and got no response other than 'we're working on your case'. But the interest on this amount is a very small sum, apparently.They say ' 0.089 of a pound's interest per day since the overpayment has been made.' Whatever that means. (Overpayment?? I thought this was an underpayment issue. Anyway.)

But yes, it was the whole question of whether he's liable for a different sum if he was quoted something which he then paid in full. Hmm. Maybe he's right and a solicitor would be able to help.

Thanks for advice! If there are any friendly legal people around, would really appreciate knowing if we have a case to actually take to a solicitor!

OP posts:
titchy · 19/01/2010 14:39

Agree he needs to check what was sent when he requested the quote. Was the quote to pay off the outstanding balance received in writing? Did he ask for the balance as of a specific date? Often if you ask for the outstanding balance you'll get told what is is on the day you ask, not on the day you actually get rouond to paying it off and interest will have accrued.

New posts on this thread. Refresh page
Swipe left for the next trending thread