Hundreds of thousands of customers that are in mortgage arrears, after a regulator ruled, could be eligible for compensation.
Lenders have been told by the FCA to work out who has been effected by this. Also how much they will be owed in compensation payments. The problem started as lenders have been including arrears payments automatically into normal monthly payments. This has left as many as 750,000 customers paying higher mortgage payments that they should be.
This has caused some customers to be paying twice the amount for entering arrears. These customers would not have definitely lost out as due to the overpayments the mortgage is then being paid off quicker.
The average repayment will be in the low hundreds of pounds according to information from the FCA