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  • FIRST POST
    • ShirleyD
    • By ShirleyD 6th Dec 17, 5:48 PM
    • 2Posts
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    ShirleyD
    Is your bank allowed to change your interest only mortgage term?
    • #1
    • 6th Dec 17, 5:48 PM
    Is your bank allowed to change your interest only mortgage term? 6th Dec 17 at 5:48 PM
    I have had an interest only mortgage with the Bank of Scotland for the last 13 years and have done a couple of product transfers during that time so as not to have to go through the full remortage process. I have only just noticed on my annual statement, that when I did the last one 2 years ago, they reduced the term of my mortgage by 9 years! During my interview for the product transfer this was not what was agreed and it was also not on the Key Facts documentation which I received recapping what had been discussed and what they were recommending - it still had the full term on it. It was on the Product Transfer document they sent me but at no time was it pointed out that this had been changed and I never picked up on it, assuming all the details would be the same. I thought that if I or they wanted to change the term of the mortgage it was classed as a remortgage rather than a product transfer. I am hoping it was a mistake and am waiting on a reply from the bank about it. Can anyone else advise?
Page 1
    • YHM
    • By YHM 6th Dec 17, 5:58 PM
    • 303 Posts
    • 99 Thanks
    YHM
    • #2
    • 6th Dec 17, 5:58 PM
    • #2
    • 6th Dec 17, 5:58 PM
    Changing the term is classed as a remortgage. Doesn't sound right to me...
    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 6th Dec 17, 6:16 PM
    • 56,239 Posts
    • 49,610 Thanks
    Thrugelmir
    • #3
    • 6th Dec 17, 6:16 PM
    • #3
    • 6th Dec 17, 6:16 PM
    Best to wait for clarification. Little point in speculating. As without the full facts impossible to pass any comment. .
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • ShirleyD
    • By ShirleyD 6th Dec 17, 6:20 PM
    • 2 Posts
    • 0 Thanks
    ShirleyD
    • #4
    • 6th Dec 17, 6:20 PM
    • #4
    • 6th Dec 17, 6:20 PM
    Thanks. That's what I thought, but interested in others opinions/thoughts. The banks ask you to set up a 'repayment vehicle' but assuming you arrange it for the term you take the mortgage out for, I don't see how they can suddenly change it and expect you to pay it off 9 years early (the mortgage is not in arrears). Only a loan shark would go through all the terms then change the small print without notice right before you sign!
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