Many homeowners have been struggling with debts on their mortgages as a result of errors made by some of the UK’s top banks and building societies.
The mistakes are found with repayment mortgages as figures show that customers have been overcharged in interest payments, some by over £20,000! It has recently been discovered that some customers have been overpaying for over fifteen years!
What is being done?
BankCheck have been looking into this matter and have revealed that errors made were never detrimental to the lender but always to the disadvantage of the customer.
Alliance and Leicester have responded to this claim by stating that they always carry out regular checks to ensure that customers are not forced into debt by administration errors. However, more worrying claims come from Nationwide and Abbey who have confessed that they do not review customers’ accounts after a mortgage has been accepted.
It has also been found that some individuals have been undercharged for their mortgages and as a result may find themselves repaying their mortgage longer than expected. This will leave the customer with a great deal of unexpected debt repayments thrust upon them to bring their mortgages up to date.
Abbey National have since apologised to their customers for not keeping a watchful eye on their repayments. They blame it on administration errors and lack of communication with their customers. They are acting on these mishaps and customers can expect to receive a new look statement in due course, which will clearly show how many years they have left to repay their mortgage and in turn become debt free.
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