Mortgage provider phones every month

[Spent2much]

We had arrears and we were paying it back at £30 a month, that finished last November and we were really proud to have paid it back , anyway when we went on the website to pay the monthly payment we noticed that the £30 arrears was still on there, husband phoned and asked why and they said it was because they wanted us to be a month in front . My husband said well we were releived to have paid the arrears back and was looking forward to seeing the £30 a month again and it will help with some other bills. They agreed to take that off , however we received a letter saying that they have added another £1.89 on top of the payment so we are always ahead .

Since last November they send us a monthly reminder that if we don't pay by 30th of the month we will be in arrears , and they also phone hubby every month to remind him .

Not sure why they are doing this because while we were in arrears and paying that back they didn't bother us at all just sent monthly statements .

[PlanB]

Re: Mortgage provider phones every month

I know who your lender is and I know that they have previously been sanctioned by the FSA (now FCA) for bad practice. It cost them literally millions of pounds (the fine) at the time.

Give me a day or two to think this through.

A small (objective) part of me thinks that there's a possibility that the lender is trying to be helpful since Pre-Action Protocol says a Lender should not rush into repossession proceedings unless mortgage arrears are more than six months. There's a possibility (keep open-minded!) that they are suggesting that being £1.89p ahead of the game will protect you from being seen as in arrears.

The regular monthly phone calls may be part of the lender's policy to communicate more effectively with the borrower (as imposed by the FSA).

The changeover from the OFT and FSA to the FCA has resulted in lots of unnecessary red tape and heavy-handiness.

Plan B x

[Spent2much]

Re: Mortgage provider phones every month

I know who your lender is and I know that they have previously been sanctioned by the FSA (now FCA) for bad practice. It cost them literally millions of pounds (the fine) at the time.

Give me a day or two to think this through.

A small (objective) part of me thinks that there's a possibility that the lender is trying to be helpful since Pre-Action Protocol says a Lender should not rush into repossession proceedings unless mortgage arrears are more than six months. There's a possibility (keep open-minded!) that they are suggesting that being £1.89p ahead of the game will protect you from being seen as in arrears.

The regular monthly phone calls may be part of the lender's policy to communicate more effectively with the borrower (as imposed by the FSA).

The changeover from the OFT and FSA to the FCA has resulted in lots of unnecessary red tape and heavy-handiness.

Plan B x

thank you PlanB it is only 1.89 and if it does keep us ahead of the game then fair enough. I must say that they have been really helpful and understanding . In fact they have a new online payment system now but a few months back it was playing up and it took my payment from the bank then said it didn't take it so my hubby called them and they said nothing was wrong with the system , anyway long story short they did admit it had a fault and the payment went through eventually, no penalty fines as their fault . The next month we get a letter through with an apology and a cheque for £25 as compensation

[Never-In-Doubt]

Re: Mortgage provider phones every month

I know who your lender is and I know that they have previously been sanctioned by the FSA (now FCA) for bad practice. It cost them literally millions of pounds (the fine) at the time.

Give me a day or two to think this through.

A small (objective) part of me thinks that there's a possibility that the lender is trying to be helpful since Pre-Action Protocol says a Lender should not rush into repossession proceedings unless mortgage arrears are more than six months. There's a possibility (keep open-minded!) that they are suggesting that being £1.89p ahead of the game will protect you from being seen as in arrears.

The regular monthly phone calls may be part of the lender's policy to communicate more effectively with the borrower (as imposed by the FSA).

The changeover from the OFT and FSA to the FCA has resulted in lots of unnecessary red tape and heavy-handiness.

Plan B x

Hang on - a lender can't add ancillary amounts at their will. Regardless of what they want to do, it's not on. They can't just add money to the bill and likewise they can't continue calling if the mortgage holder doesn't want them to.

This is prime creditor abusing a borrower AGAIN.

As as for the red tape - good. I hope it gets worse. A lot worse. The FCA need to mete out some severe fines me thinks.

This lender behaviour makes me sick and you should be in their faces quoting right v wrong.

[SaltnVinegar]

Re: Mortgage provider phones every month

We had NRAM (Northern Rock Asset Management), sending us letters every month to remind us a payment was due on the account. They used to phone but to be fair after I sent them a complaint letter demanding phone calls stopped they did.

There was no reason for them to do this, other than the fact I had payments set up via Standing Order, not via DD. This also only started after the FCA took over so agree its probably due to the extra red tape thats been introduced.

[Never-In-Doubt]

Re: Mortgage provider phones every month

We had NRAM (Northern Rock Asset Management), sending us letters every month to remind us a payment was due on the account. They used to phone but to be fair after I sent them a complaint letter demanding phone calls stopped they did.

There was no reason for them to do this, other than the fact I had payments set up via Standing Order, not via DD. This also only started after the FCA took over so agree its probably due to the extra red tape thats been introduced.

Oh it's probably good (red tape) if you genuinely don't mind them calling but if it annoys / upsets you then you can demand it stops. They have no right to make money demands / debt contact until AFTER you've missed that due payment.

Only thing is FCA is tougher than OFT ever were!! Hey we had GMAC - and you think NRAM are bad

[PlanB]

Re: Mortgage provider phones every month

it is only 1.89 and if it does keep us ahead of the game then fair enough. I must say that they have been really helpful and understanding . In fact they have a new online payment system now but a few months back it was playing up and it took my payment from the bank then said it didn't take it so my hubby called them and they said nothing was wrong with the system , anyway long story short they did admit it had a fault and the payment went through eventually, no penalty fines as their fault . The next month we get a letter through with an apology and a cheque for £25 as compensation

This may have something to do with the payment date. Mortgage repayments are set up for the anniversary of the start date so if the DD, SO or online payment arrives 24 hours later than the payment "due date" it can cause an additional minor interest charge since in effect your payment is late.

Or if the interest is charged daily not monthly (it varies from lender to lender) you can get an extra random amount if a Bank Holiday has caused your payment to appear a day late on the database. Easter often causes havoc in that respect.

I have one mortgage which charges me 0.06p per month over and above my normal payment amount because I chose to pay on the 28th of the month to match my Tenant's rent payment date but in theory it is due on 19th of each month. I'm happy to pay 0.06p if it allows me to balance my books.

Neither of these reasons are an excuse but they may be an explanation.

I would simply email them and ask them to put in writing the reason for the £1.89p extra (is it every month from now on?). It's such a random amount that there will probably be a logical reason and therefore a logical solution such as paying a day earlier if you can afford to.

If it is to do with the payment date then I can see why they are helping you to avoid showing on the database as if you were technically in arrears because this would trigger late payment charges and a transfer of the account to their collections team. The database makes the decisions not human beings until someone interrupts. This could be the reason for the phone calls in advance alerting you to a potential problem.

Good news about the £25 compensation they paid after acknowledging their computer had messed up on the one-off £30 double charge.

Many congratulations for clearing your mortgage arrears. There were times last year when you nearly threw in the towel. Well done for hanging on in there.



Plan B x

[PlanB]

Re: Mortgage provider phones every month

We had NRAM (Northern Rock Asset Management), sending us letters every month to remind us a payment was due on the account. They used to phone but to be fair after I sent them a complaint letter demanding phone calls stopped they did.

There was no reason for them to do this, other than the fact I had payments set up via Standing Order, not via DD.

I can see why it happened in your case if you were paying by standing order not direct debit since most mortgage Ts & Cs stipulate that you pay by Direct Debit and you would have been asked to complete a DD form before the loan was advanced.

What tends to happen is if you switch to standing order having cancelled a direct debit the database flags up that this borrower may be in financial difficulty which is why they start to call out. When I cancelled all my DDs to 23 creditors in 2009 all hell broke loose until I told them it was because I'd changed banks. That was a white lie but it stopped the phone calls.

I then paid my mortgages by debit card over the phone which incurred a small handling charge but I couldn't complain since the Ts & Cs said pay by DD so I was breaking the terms.

The lender believes that contacting you before there's a problem is being proactive and prevents the problem. At least that's what they'd tell the FOS or FCA if you tried to accuse them of harassment.

Plan B x

[Never-In-Doubt]

Re: Mortgage provider phones every month

Makes sense. Thanks for spelling it out PlanB.

[julian]

Re: Mortgage provider phones every month

There are another couple of points that may incur the additional charge.

1) The Standing Order is initiated by your bank. Although it will be transferred on the day sent to the mortgage creditor, it may take 2+ days to arrive in your account with them, as most SOs are processed daily overnight. The process may miss the receiving banks update process, also overnight, so day later. In addition, there may be more processes that add days.

2) The bank may be adding charges for the calls/letter.

[julian]

Re: Mortgage provider phones every month

Debit card payments are now immediate to the receiving bank, within 2 hours. There is not an overnight delay unless you are paying through an intermediary bank or department.

[julian]

Re: Mortgage provider phones every month

So if you can move the payment a few days forward.

PS Sorry to split post but still have problem typing.

[Spent2much]

Re: Mortgage provider phones every month

we have paid on time every month by debit card and when the payment goes through it shows up straight away . If this £1.89 extra a month stays on then it surely has to come off the capital and not the interest . Its an interest only mortgage .

[PlanB]

Re: Mortgage provider phones every month

If this £1.89 extra a month stays on then it surely has to come off the capital and not the interest . Its an interest only mortgage .

You need to write to Kensington Mortgages and ask them exactly what the extra £1.89p is for each month.

Their Standard Variable Rate mortgage rates are linked to LIBOR which they review quarterly. LIBOR has been increasing since the start of this year. I have one with them and it's been increasing by about £2 per month. Only trackers which are linked to the Bank of England Base Rate have been staying the same until rates rise next year (predicted to be in Feb 2016).

It could be something innocent. Ask them. And if it isn't then ask them to stop doing it

Plan B x

[Spent2much]

Re: Mortgage provider phones every month

You need to write to Kensington Mortgages and ask them exactly what the extra £1.89p is for each month.

Their Standard Variable Rate mortgage rates are linked to LIBOR which they review quarterly. LIBOR has been increasing since the start of this year. I have one with them and it's been increasing by about £2 per month. Only trackers which are linked to the Bank of England Base Rate have been staying the same until rates rise next year (predicted to be in Feb 2016).

It could be something innocent. Ask them. And if it isn't then ask them to stop doing it

Plan B x

Hi ,i have only just seen this reply sorry about that planB, yeah we will write to them and ask . thank you x