incorrect rate on mortgage a/c

I'm in the process of having my mortgage a/c checked by my lender. I believe that I'm being charged 0.25% too much and no it's not one of Trichets increases. When I say in the process of I mean I have brought it to the lenders attention and they're telling me there's a backlog of one month with the lenders mortgage a/cs in the Dublin office. I was told this by my local bank branch. I feel I am being fobbed off but am willing to wait the month to see what happens. My question is this: if I am correct then I will have had the overcharge for about 16 months (never noticed it until I was going through some bank documents!) - is there a formula whereby I could estimate what the overcharge may be in money terms?

Why do you think you are being overcharged? Post as much detail as possible to illustrate your point - e.g. the lender's calculations and yours and how they differ.

Who is the lender?
What is the loan amount?
What is the loan to value ratio?

we have 3 a/cs with this lender. our LTV during all 3 would have been <60%. We have been doing up an old house ove rthe last number of years hence the 3 a/c's - 3 top-ups. Two of the accounts are following ECB +0.75%. The one in question seems to be ECB+1.0%.Haven't done any calculations as that is what I'm looking for from the OP. If one a/c is 0.25% more than it should be in my opinion then I believe this represents an overcharge.Can't find the letter of offer from the lender for this which is why I queried the rate with them.

majee said:

The one in question seems to be ECB+1.0%.

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You mean you don't even know the rate for sure!?

Haven't done any calculations as that is what I'm looking for from the OP.

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OP?

If one a/c is 0.25% more than it should be in my opinion then I believe this represents an overcharge.Can't find the letter of offer from the lender for this which is why I queried the rate with them.

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So you have no evidence of overcharging after all?

You really need to get your facts together before accusing a lender of overcharging or insinuation same.

majee, is this BOI?

I've recently noted that they are charging me the incorrect rate too and have yet to get in touch with them about this.

in response to your most recent reply clubman:

1.re your statement saying I don't even know the rate for sure.....as I said in my second post two of the a/c's are ECB + 0.75%. This is rate I agreed on all three a/c's but one of them is higher than the other two by 0.25%. As I said I can't find the letter of offer for it so I've asked them to check.

2. you asked me to post as much details as possible e.g the lenders calculations.As I asked for in my OP and stated in my second post, I'm after a sample calculation of how interest is calculated.In the event that I'm proved right, I would like to be able to do a calculation myself. Why are you confused by this in your second post?

3.On your last point I've asked the lender to investigate. I said I believed there's an overcharge of 0.25%. The only evidence I can go off is a direct comparison of the rate of all three a/c's since the rates started to go up. Two of them have matched exactly, one seems to be +0.25%. I've queried this as our LTV when we started our mortgage in 2002 was ~50%. I don't think it's gone over 60% in the period since that would warrant an increase of 0.25%....especially on just one of the three a/c's. I think that evidence enough to suggest an issue don't you? I also haven't named the lender deliberately.

Hope this helps you understand. PM me if you want me to make it a bit simpler for you.

If one mortgage was on a PPR and the others on investment properties then owner occupier mortgage interest relief on the first would probably make the net repayments less than on the others. Are you sure that none of the mortgage repayments include mortgage protection life assurance premiums or other insurances?

No clubman. If you look at my second post I said it was a house we are doing up and we have had two top-ups.(original mortgage and 2 X top-ups - may have incorrectly said 3 top-ups previously).
In answer to your question - yes I'm sure.

Nige, it's not BOI.

Moved house about 9 months ago and originally requested a loan that was >60% LTV with AIB (Trakcer mortgage). However, we sold the house for more than we expected and had an SSIA mature too so we changed the application to <60% LTV.

After closing on the house we received a letter stating the interest rate ant term etc and luckily I noticed they were quoting us at the >60% LTV rate (I think it was 0.25% higher). I contacted the local branch and they checked it out. They confirmed it was incorrect and corrected it right away - before the first payment was made. They said it was due to the fact we'd changed the amount and they were still charging on the basis of the original application, funny enough they didn't make the mistake of lending the amount on the original application. In fairness to them they did correct the error as soon as it was pointed out. But if I hadn't noticed - would they have told me? Who knows.

It made me realise how many people don't actually know what mortgage rate they're on or what type of mortgage they have. People who'd watch every penny and would haggle over the price of a macaroon bar, could probably save a fortune if they just looked at their mortgage but don't seem to bother or simply just don't know how.

Majee, if you dealt with a broker for the last top up they should have a record of the loan offer. Other then that, most lenders use a scanning system these days so if you got your top-up in the last 3 years or so, most lenders will also have your loan offer on their system so my advice would be to ring the customer service line, quote the ref. off the previous top-ups (should not have changed) and ask them to send you a copy of the loan offer. Maybe check before hand if they do infact use a scanning system