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hi there,
this is my first post ever so hello everyone, i'm not much of a writer but wanted an ear and found you guys
We received a letter in the post today. (excerpt below)
Could anyone let me know if they think this is fair? It’s the first I’ve heard of this, being able to ‘ask for a refund’ of the early repayment charge. Nobody explained this to us? Have we been mis-sold? Is 8% gross interest enough? Or should we just be very happy that we are getting some money back? and i am happy but i just dont really trust banks.
The line that gets me is ‘This includes some interest as compensation for the delay in refunding you.’
It was nearly 10years ago!!
——————————
You're due a refund on your mortgage ending in: ***********
When you paid off your mortgage with us in November 2015, you paid an early repayment charge.
As you took your new mortgage with Santander within a short timeframe, in line with the terms and conditions of your old mortgage, you were able to ask for a refund of the early repayment charge. You didn't get this refund at the time.
We're sorry and we want to put this right.
The total amount due to you is detailed in the table below. This includes some interest as compensation for the delay in refunding you.
A. Refund of early repayment charge paid by you - £3426.57
B. 8% gross compensatory interest payment - £2326.69
C. income tax deducted at 20% from compensatory interest (20% of B) - £465.34
D. Total payment amount (A+B-C) - £5287.92
As shown above, we've deducted 20% income tax from the compensatory interest payment. This is required by HM Revenue & Customs (HMRC). Please keep this letter safe as you might need it to do a Self Assessment tax return in future.
If the total amount of interest you receive in any tax year is more than any personal savings allowance you're entitled to, you may need to pay extra tax. If the total amount of interest you received in any tax year is lower than your personal savings allowance, you may be able to reclaim the tax deducted.
You should contact MRC to discuss any extra payments or refunds due. You can find out more on gov.uk. Just search for 'personal savings allowance'.
What you need to do
Please fill in the acceptance form sent with this letter and send it back to us within 3 weeks. There is an option to receive the refund into a joint account in both your names or, alternatively, to receive the refund in two equal payments to sole accounts in each of your names.
You can post the form to us using the prepaid envelope provided, or you can scan or take a photo of the form and ema it to us at CustomerAcceptanceReturns@santander.co.uk
Once we hear back from you, we'll make the payment directly to your chosen bank account within 2 weeks.
this is my first post ever so hello everyone, i'm not much of a writer but wanted an ear and found you guys
We received a letter in the post today. (excerpt below)
Could anyone let me know if they think this is fair? It’s the first I’ve heard of this, being able to ‘ask for a refund’ of the early repayment charge. Nobody explained this to us? Have we been mis-sold? Is 8% gross interest enough? Or should we just be very happy that we are getting some money back? and i am happy but i just dont really trust banks.
The line that gets me is ‘This includes some interest as compensation for the delay in refunding you.’
It was nearly 10years ago!!
——————————
You're due a refund on your mortgage ending in: ***********
When you paid off your mortgage with us in November 2015, you paid an early repayment charge.
As you took your new mortgage with Santander within a short timeframe, in line with the terms and conditions of your old mortgage, you were able to ask for a refund of the early repayment charge. You didn't get this refund at the time.
We're sorry and we want to put this right.
The total amount due to you is detailed in the table below. This includes some interest as compensation for the delay in refunding you.
A. Refund of early repayment charge paid by you - £3426.57
B. 8% gross compensatory interest payment - £2326.69
C. income tax deducted at 20% from compensatory interest (20% of B) - £465.34
D. Total payment amount (A+B-C) - £5287.92
As shown above, we've deducted 20% income tax from the compensatory interest payment. This is required by HM Revenue & Customs (HMRC). Please keep this letter safe as you might need it to do a Self Assessment tax return in future.
If the total amount of interest you receive in any tax year is more than any personal savings allowance you're entitled to, you may need to pay extra tax. If the total amount of interest you received in any tax year is lower than your personal savings allowance, you may be able to reclaim the tax deducted.
You should contact MRC to discuss any extra payments or refunds due. You can find out more on gov.uk. Just search for 'personal savings allowance'.
What you need to do
Please fill in the acceptance form sent with this letter and send it back to us within 3 weeks. There is an option to receive the refund into a joint account in both your names or, alternatively, to receive the refund in two equal payments to sole accounts in each of your names.
You can post the form to us using the prepaid envelope provided, or you can scan or take a photo of the form and ema it to us at CustomerAcceptanceReturns@santander.co.uk
Once we hear back from you, we'll make the payment directly to your chosen bank account within 2 weeks.
