Refund amounts

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HereAndNow

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Probably should wait until we get letters as there is conflicting information from various sources on the calculation and the manner of refund.

I've gone through my statements and see that I paid over 15K interest in 2011. It should have been in the region of 6.5K at the ECB + 1.1% now applied to my account. The differential is around 7K for all other years since 2009.

Surely all that amount should be refunded rather than applied to any capital reduction?
I've reduced the term of mortgage (purely to offset lifetime interest costs). Initially term end was 2042, but I increased payments to end in 2029. So no way should any of my forced overpayments due to interest rate errors be applied to further capital reduction?

As per the FAQ..
• Their balance will be adjusted to the amount that it would have been, had they chosen the tracker rate. • Following this adjustment, any overpayments will be refunded to them.

Due to my reduction in term, my capital balance is 50K ahead of where it should be from the initial terms.

According to my calculations I've over paid in the region of 40K since 2009. I don't want this to go against my capital which is now at the proper mortgage rate of 1.15%

thoughts?
 
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