Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Annoyedwithbarclays
    • By Annoyedwithbarclays 3rd Oct 17, 2:47 PM
    • 1Posts
    • 0Thanks
    Annoyedwithbarclays
    Fixed Rate Mortgage Dispute
    • #1
    • 3rd Oct 17, 2:47 PM
    Fixed Rate Mortgage Dispute 3rd Oct 17 at 2:47 PM
    Hi, I am looking for some advice please. I have a 2 year fixed rate mortgage with Barclays. The mortgage started in November 2016 when I moved into my house. The original mortgage agreement was made in June 2016 and it was known by all parties that move in date and commencement of the mortgage would be November 2016 as this was when the new build would be ready.

    So I received a letter saying that we would move to the standard variable rate in June 2018 from Barclays. I rang them and explained this must be an error as we didn’t start the mortgage until November 2016 and it is a 2 year fixed mortgage.

    The lady on the phone explained that this was not the case and the deal expires in June 2018 as this was when the agreement was made. I countered and explained that it was a two year fixed rate and my documents said 24 payments on a fixed rate. The lady kept disagreeing and when I asked to speak to a manager she refused! I have now lodged a formal complaint and they have eight weeks to respond.

    Shocking experience but I am hoping people might be able to advise me here? Thanks!
Page 1
    • kingstreet
    • By kingstreet 3rd Oct 17, 3:22 PM
    • 32,366 Posts
    • 17,376 Thanks
    kingstreet
    • #2
    • 3rd Oct 17, 3:22 PM
    • #2
    • 3rd Oct 17, 3:22 PM
    Does your original illustration and offer indicate two years/twenty four months from completion, or "until 30 June 2018" or similar?

    It could be either and it depends on the lender concerned.

    I'm looking at a Barclays KFI and it says "a fixed rate of 1.89% that will apply from completion until 31 October 2019" so I suspect your product has a fixed end date, not a number of years/months from completion.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Amst
    • By Amst 3rd Oct 17, 7:58 PM
    • 69 Posts
    • 30 Thanks
    Amst
    • #3
    • 3rd Oct 17, 7:58 PM
    • #3
    • 3rd Oct 17, 7:58 PM
    As Kingstreet mentioned above, the product will have an end date - Barclays may have introduced this months before July 2016 with the expectation that people will have completed around July and benefit from the full two years.

    If you complete early you benefit, if you complete late you benefit less.

    You won't get anywhere with a complaint but steam ahead if you wish.
    • amnblog
    • By amnblog 3rd Oct 17, 9:07 PM
    • 10,071 Posts
    • 3,926 Thanks
    amnblog
    • #4
    • 3rd Oct 17, 9:07 PM
    • #4
    • 3rd Oct 17, 9:07 PM
    As above.

    Barclays fixed rates run to a date, not for '24 months'. See your offer.

    There were 24 payments at the fixed rate on your offer as the offer has to assume a start date which you did not make.

    Barclays will in all likelihood reject your complaint
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 3rd Oct 17, 10:06 PM
    • 56,213 Posts
    • 49,594 Thanks
    Thrugelmir
    • #5
    • 3rd Oct 17, 10:06 PM
    • #5
    • 3rd Oct 17, 10:06 PM
    it was known by all parties that move in date and commencement of the mortgage would be November 2016 as this was when the new build would be ready.
    Originally posted by Annoyedwithbarclays
    Read the copy of your mortgage offer that you signed. This it what determines the product term not the completion date of the mortgage.
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • ACG
    • By ACG 3rd Oct 17, 10:12 PM
    • 15,896 Posts
    • 8,142 Thanks
    ACG
    • #6
    • 3rd Oct 17, 10:12 PM
    • #6
    • 3rd Oct 17, 10:12 PM
    As others have said, 2 years is not always 2 years, but 2 years give or take. Some lenders will do 24 months, others will have a set end date.

    The reason being is that they have a tranche of money. Those deals all come to an end at the same time. It allows them to get staffing levels for the calls and it may also tie in with money they have bought in from the open market.

    The issue here is that you did not read your offer properly. You are not the first to be caught out by it (I have seen others make similar posts about different lenders) and I doubt you will be the last.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

320Posts Today

2,237Users online

Martin's Twitter