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If someone doesn’t pay enough towards their mortgage each month, there’ll be money left to pay at the end of the mortgage term. This can happen without people realising. We hear from people who’ve “underfunded” their mortgage in this way - and are now faced with paying back more than they expected.

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  • Some people who contact us aren't sure how the problem happened in the first place. So first things first, we'll look into how the mistake with repayments came about - and whether the mortgage company, a mortgage broker, or the borrower themselves is responsible.
  • If someone tells us their mortgage company has made a mistake, we'll look at the information the mortgage company provided about the repayments - both at the start of the mortgage, and later on if the repayments changed. We'll decide whether - from any paperwork or other communication - it's reasonable that the borrower could have known they weren't paying enough.
  • If we decide a mortgage company's mistake caused the underfunding - and their customer couldn't have known - we generally tell them to rework their customer's account as if the correct payments had been made. This could mean writing off the extra money - or some of it, if we think the borrower could have realised sooner.
  • If the mistake was made by a mortgage "intermediary" such as a broker, they won't be able to restructure the mortgage. But we can tell them to make up the money that should have been paid.
  • If we find that the borrower made the mistake - for example, by setting up a standing order for the wrong amount - we're unlikely to tell the lender to write off the money. But we'll encourage them to work together to arrange a fair way to get the money paid back.

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consumer helpline - 0800 023 4567
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