My mortgage company is taking the piss advice please

[Hawaiiinthemorning]

Hi I’ve had my mortgage for 15 years, I got it on a self certification as self employed at the time. About 5 years ago I had to claim benefits but have always managed to pay it, sometimes in arrears but only by a month or so. It’s a very small mortgage.

Last year I had an accident and have received compensation via a solicitor and it has come in several payments, I have paid lump sums off and my mortgage company asked for proof of these funds, fair enough.
So I sent a copy of the solicitors letter but apparently this wasn’t enough, they wanted my bank statement, I scrubbed out all transactions that weren’t relevant and sent it clearly stating date, amount and solicitors name.
They said they wanted to see my entire statement I told them to fuck off, in different words!
They eventually accepted the money and credited to my account.
Now I’ve received a cheque from a very well known insurance company and I’ve made another payment.
Can’t ding the accompanying letter but I’ve photographed the cheque stating who it’s from, my name and date and they’re saying it’s not enough evidence?!?
Also after paying several thousand extra last year they have reduced my monthly payment so I’m still paying mortgage for the original term.
I expected it to be less time, are they allowed to do this?
Thank you for reading, hope I’ve covered everything and really hope someone can advise.

They've told you what they want. Just send it. It's a normal request.

Yeah I can see when they have to do checks against money laundering why a picture of a cheque isn’t enough. Why can’t you send the letters?

In terms of the term, I’m less sure. Ordinarily you’d be looking now for a remortgage birthday am guessing this isn’t possible due to the arrears?

When you make overpayments you can either ask they recalculate to reduce your term OR recalculate to reduce your monthly amount.

If you didn’t specify which option you wanted the person processing it will have picked an option. You can always ring and ask to change it.

Regarding the proof of funds you can decline to provide further info of course, the bank may make a referral to HMRC or flag the transaction for investigation for money laundering tho.

I’ve sent all the evidence they need, it’s like they’re intentionally making it difficult

It’s really not ok to ‘sometimes’ be in arrears, even if just for a month. Arrears are very bad news to mortgage providers so I should count yourself lucky they are prepared to keep your mortgage on in any capacity.

If you want the mortgage to end earlier you could just make overpayments, or you could ask them to shorten the term but given your past account conduct they may be concerned about affordability hence giving you a structure with a low monthly payment

I’m no longer in arrears and I’m not declining proof, I can’t find the letter, the cheque shows exactly where it’s from.

They need to check the source of funds to comply with anti money laundering legislation (not their choice) so if I were in your shoes I’d just submit documentation relating to your accident and successful insurance claim and be done with it. I would say (and I say this kindly) it’s more you making things intentionally difficult by withholding information!

Martin Lewis on mortgage overpayments here:
www.moneysavingexpert.com/news/2015/03/decrease-the-term-or-overpay-my-mortgage-martin-lewis-answers/

Contact your mortgage provider and ask them to reduce the term instead of the payment. Tbh though it probably would have been best to ask for that at the time, I read around about this for our mortgage and most advice was geared towards making this request at the same time as you’re making the overpayment. I didn’t read anything about asking for recalculation a year later- fingers crossed might be fine though!

They're not taking the piss they are complying with money laundering requirements.

If you have really had the same mortgage for 15 years you're likely to be on a bad deal. I'd suggest looking at rebroking, especially if you have a good LTV.

You probably broke their T&Cs when you had to claim benefits as you are normally obliged to tell them of a change in circumstances. But you sound so self righteous I imagine you think normal rules don't apply to you

They aren’t intentionally making it difficult- they are following the rules to ensure that you aren’t money laundering.

It’s the old adage - if you have nothing to hide then you have nothing to worry about, yes it’s annoying that decent people have to show their innocence, but on the other hand anything that helps hinder or stop money laundering and organised crime is a good thing.

@Youngatheart00

They need to check the source of funds to comply with anti money laundering legislation (not their choice) so if I were in your shoes I’d just submit documentation relating to your accident and successful insurance claim and be done with it. I would say (and I say this kindly) it’s more you making things intentionally difficult by withholding information!

I know they need to check, I’m not withholding anything, I’m just not giving my bank statements they are completely irrelevant to them.

@Hawaiiinthemorning you have decided the bank statements are irrelevant but the financial regulator hasn’t. The law will win!

@Hawaiiinthemorning

I’ve sent all the evidence they need, it’s like they’re intentionally making it difficult

You've sent all the evidence you think they need. Banks have to adhere to regulations and the consequences of them not doing so are huge. You are on a self cert mortgage which has been in arrears and are suddenly repaying large chunks of the capital. This is not in line with the usual conduct of the account. They need to make absolute sure that these funds are from legitimate sources and have to request the necessary proof of this or could face huge fines If you're not happy with this then you should remortgage elsewhere but you will fine that all banks operate in the same way

I know they need to check, I’m not withholding anything, I’m just not giving my bank statements they are completely irrelevant to them.

They are completely relevant to them. If you’re asking to change anything about your mortgage they will need to see bank statements. Do t you remember applying when you had to provide months worth?
Not sure why you see this as so unusual - it’s completely standard. It’s a mortgage lender not a bloke on the street.

I've never been asked for any evidence for overpayment on my coop mortgage. Not been in arrears though, maybe that makes a difference.

Either you want to pay it off or you don't.

If you want to pay it off, I suggest you comply with the basics of money laundering checks.

If you don't want to pay it off, keep defaulting on your mortgage - they'll take it away completely.

It's such a simple thing. Anyone applying for a new mortgage has to do the same. You are not being singled out and you are not so special that you shouldn't have to do it.

Take your pick.

@2022newname

I know they need to check, I’m not withholding anything, I’m just not giving my bank statements they are completely irrelevant to them.

They are completely relevant to them. If you’re asking to change anything about your mortgage they will need to see bank statements. Do t you remember applying when you had to provide months worth?
Not sure why you see this as so unusual - it’s completely standard. It’s a mortgage lender not a bloke on the street.

Agree completely. They will need to verify the bank statements to confirm they are legitimate. Redacted statements cannot be accepted for this reason

I also recall that when my parents gifted me £5k as part of my first ever deposit they also asked for their bank statements.

Why won’t you give your bank statements? Genuinely baffled!

They don’t want to judge your Amazon habit. They want to check funds are not due to money laundering. Blanking out all your other transactions makes it more not less suspicious. Just let them do their job.

On the reduction of term vs reduction of monthly payment when you overpay lump sums, you need to tell them explicitly that you want the lump sums to reduce the term. The default for them is always to keep the original term (as this earns them the most interest).

You have been in arrears and suddenly now have lump sums to overpay.
Of course they need to check where it comes from, they aren’t taking the pies they are following money laundering regulations

Ok well I’m obviously wrong, however they have not received my full bank statements and have accepted overpayments, it’s as time goes on they want evidence. Also my mother gave me £5,000 last year, also accepted by them , no questions asked.

Would they accept a letter from the insurance people?

@Hawaiiinthemorning do you not see how the more you drop in large sums the more likely you are to flag for money laundering checks?

Someone getting a one off inheritance- usual. Three lots of high overpayments - potential drug dealer.

Also as someone mentioned up thread - it may be worth your while shopping around, interest rates are still low (but climbing).

@ThreeFeetTall

Would they accept a letter from the insurance people?

They sent it via my solicitor and I can’t find the letter, although I have sent them previous solicitors letters. Really don’t understand why the cheque, with all the info visible isn’t enough.

[quote 2022newname]@Hawaiiinthemorning do you not see how the more you drop in large sums the more likely you are to flag for money laundering checks?

Someone getting a one off inheritance- usual. Three lots of high overpayments - potential drug dealer.

Also as someone mentioned up thread - it may be worth your while shopping around, interest rates are still low (but climbing).[/quote]
Oh course I understand they need to check. I’ve given them proof,