Miscalculated Mortgage Overview
Mortgage miscalculation happens when a moneylender cheats the customer on their home loan over the premium and expenses they have consented to. There are many reasons as to why miscalculations can occur: from direct financial misdemeanor to negligence when it comes to managing borrower’s payments—particularly after adjustments to interest rates. It has been observed by the Financial Conduct Authority (FCA) that some miscalculations have occurred as part of automated changes to repayments that banks were not paying attention to, following amendments to Bank Rate by the Bank of England.
Whatever the reason for a mortgage miscalculation, the outcome is the same. The customer has been paying more cash than they should to their lender which means that they are owed that cash back. Since mortgages can last decades, there is the potential for a significant payout.
Who regulates Miscalculated Mortgage?
The Financial Conduct Authority regulates all claims related to miscalculated mortgage.
There are a number of reasons why miscalculated mortgage may happen:
- The lender applied a higher rate of interest than that specified in the contract.
- The lender failed to implement an agreed concessionary interest rate.
- The lender charged unjustifiable arrears charges when the account is not actually in arrears.
- The lender accounted for interest on arrears twice.
- Interest may have been charged from a date that is different to that which is specified in the agreement.
- Unwarranted charges, fees or other items such as third party fees and insurances can sometimes be added to the account without justification.
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