Check Your Mortgage Statement

You have only to read the letters pages in business supplements of the newspapers. Many carry requests for help to obtain redress for computer errors, lost documents and over charges.
At least these letter writers know there is an issue or problem. If you do not check your mortgage statement you may never know if something is wrong.

Check Your Mortgage Statement

• Checking the bills you get makes sense, everyone can make a simple error. Your mortgage is one of the largest bills you are likely to receive so give it the time and checks it deserves.
• You may spot an unexpected fee or charge on your statement but the jargon used can be confusing or just plain baffling.
• Ask your lender for a ‘tariff’ which should list all the costs and charges they can or may make including interest rates. Keep the tariff that originally applies to your mortgage.
• Under the Mortgage Code lenders are supposed to use plain language for the tariff or terms and conditions.
• You should be provided with a statement at least every year.
• Charges for late payments and arrears are the items most often disputed. If you think you have been incorrectly charges complain to the lender.

Complain about your Mortgage Statement

• If you think you have been incorrectly charged contact your lender and explain the problem.
• Write down the name of the people you speak too and the time and date you called.
• If after a reasonable time you do not get the response you want, put the complaint in writing to your branch and say how you want the matter resolved.
• Your key requirement should be to resolve the problem but an ex gracia payment for your costs and time may also be appropriate but do not let this tail wag the dog.
• If your lender is uncooperative or takes too long you can claim to the ombudsman. Try to exhaust your lenders complaints procedures first as the ombudsman will insist their procedures are complete first.

Using an Ombudsman or Arbitrator

• There were various ombudsmen depending on your lender. The Building Society Ombudsman for building societies, The Banking Ombudsman for banks and Chartered institute of Arbitrators for other institutions and intermediaries. They are now officially served by The Financial Ombudsman Service
• Complaints will be allocated to an Adjudicator who should investigate the case fully, so expect this to take some months.
• If the adjudicator finds your lender at fault they will instruct them to pay compensation to you.
• If the ombudsman finds against your claim you will receive a written explanation with their reasons.
• If you are still unhappy you can consult a solicitor who will charge for their services

See How to Write a Letter of Complaint to your Bank