HSBC - Homestart mortgage or any HSBC mortgage - help!

Becks045

The situation is we are on a variable rate (fixed rate ended last Summer after 2 years) but didn't renew as was selling the house so didn't want huge redemption fees to pay. Two house-sales have now fallen through so we've taken it off the market and given up! We are happy with the variable rate as its actually worked out cheaper for us with the lower interest rates. As we're unsure when and if we might sell, we prefer this flexible arrangment.

We are on a Homestart mortgage which means interest only for the first 3 years and then on to a repayment for the remaining 22 years. Repayment element due to kick in this month, had a letter last month saying payments would go to £1,200 which was fine (we were paying £950 before) and then last weekend received a letter saying it would be £1,650. I've been trying to speak to HSBC ever since Monday of this week.

Their mortgage deparment say that when they wrote to us with the new amounts they made a mistake so its tough! We have 2 letters from that last month stating the lower amount. I also called to verify this and had it confirmed with someone whose name I have and the mortgage centre even called me back to reassure me that £1,200 was correct.

Obvisouly I'm not happy. Worse still, they take 5 days to investigate and in that time-frame they have gone ahead and taken the higher amount despite my pleas of asking could they wait until its investigated. I'ev quote the FSA regulations on Treating Customers Fairly which seems to have fallen on deaf ears.

Its now Friday so 5 days on and no-one has contacted me. I've tried calling again today and after 15 minutes of no-one aswering, you can leave an option for a call-back. I did that at 9am this morning and am still waiting. I e-mailed their complaints department on Wednesday and have yet to hear communications back.

Does anyone know that becuase they have written to us and phoned us saying its £1,200 whether they have to stick to that?

We can't afford the higher amount and its not what we've budgeted for so its all a bit of a mess!

Any advice, please. I'm also very worried about this.

_Andy_

I'd assume that you're stuck with the higher amount (assuming the higher amount is correct). I.e. you're contractually obliged to pay the interest rate you've agreed to (in this case the SVR).

Things you could try if you're finding the payment a struggle -

1) Switch to the lifetime tracker of 5.99% or, if you're a Plus customer, 5.89. Both with no fees, no tie-ins.

2) Ask them to extend the term to reduce the payment.

3) If your LTV (loan to value) is less than 80% they may consider letting you go interest only.

happybroker

The capital still needs to be repaid over the agreed term so if the higher amount is correct then it will have to be paid unfortunately.

Did you mortgage offer not give you an indication of what your payments would go to?

If you let me have the mortgage amount and rate I can let you know what the payment should be (roughly)