First Direct - how can you tell them what date to switch your mortgage? Help!

1ipstick

Hi, we're coming to the end of our fixed-rate with Nationwide as of end September. In July we started the ball rolling with re-mortgaging and decided on the First Direct offset. All seemed fine, it was approved, but now they have started it a month early! So we are on the higher rate for an extra month and also have been charged the early repayment charge (£130) by Nationwide.

Obviously from the start we intended the mortgage to switch over when the Nwide one comes to an end and had told them this over the phone when setting it up. There was nowhere on the application form or in any paperwork I can find that asked you what start date you want for the new mortgage. They seem to be saying that it just automatically starts as and when, and unless you specifically say so on the form (although there is nowhere to put it!) that's what happens.

Surely this can't be right if you're re-mortgaging?- it must be a perfectly normal process to switch as the old one comes to an end?? Are they fobbing us off or should they have asked for a start date somewhere? As we had said this was a RE-mortgage, to take over from the old one, we assumed they would get the exact dates directly from Nwide (as they do with all the other details), as they did not ask us (if they did, we would have told them the end of September!).

I was just wondering if anyone else had similar experiences, as it strikes me as odd that there's nowhere on the form to give a start date.

tinkerbell84

It was on the paperwork - ours completes in October.

I remember the paperwork asked what date you wanted it to start, asked for details of existing mortgage, and if there were early payment penalties, and a tickbox if you didn't want your FD mortgage to complete before the early penalties expire

MarkyMarkD

Mortgages don't "come to an end" when the previous fixed rate ends. They go on until they reach the end of their original term - often 25 years or even longer.

The timing of the remortgage is down to the solicitors acting on your behalf. If that's FD doing it "for free" then it's still their responsibility to check the date. But equally well, it's your responsibility to tell them there is a reason for the completion not to happen before a certain date.

Now that it's happened, it's too late to get the date changed. But you could complain to FD and suggest that they change their forms - they may be kind and reimburse you.

There's no way that Nationwide would tell them the date. It's none of their business.

I have just remortgaged, to Woolwich, and they definitely DO ask you whether there's a desired completion date for the remortgage.

1ipstick

tinkerbell84 wrote: »

It was on the paperwork - ours completes in October.

I remember the paperwork asked what date you wanted it to start, asked for details of existing mortgage, and if there were early payment penalties, and a tickbox if you didn't want your FD mortgage to complete before the early penalties expire

Thanks - this is what they seemed to think would have been on our application form as well, but we've kept copies and gone through it with a magnifying glass and there's no such section on ours!

Just out of interest tinkerbell, is yours a new mortgage or a re-mortgage? It might be that they have sent us the wrong forms or something?!

MMD - yes sorry, I realise I'm using the wrong terminology... interesting that NW don't pass on the details. They must have 'pencilled in' a date somewhere along the line and just never checked with us as it's always been our firm belief that we asked them to change at the end of the fixed rate term (and why on earth would we want to do otherwise?!)

tinkerbell84

it's a remortgage (to FD from elsewhere, onto an offset mortgage). my paperwork is in one of my other houses, so I can't check it, but it was DEFINITELY on there.

1ipstick

tinkerbell84 wrote: »

it's a remortgage (to FD from elsewhere, onto an offset mortgage). my paperwork is in one of my other houses, so I can't check it, but it was DEFINITELY on there.

Thanks again... one more question, did you already have any accounts with FD? We're trying to get to the bottom of why our forms might be different as new customers.

tinkerbell84

both OH and I had to open accounts with FD, but the application form had sections we didn't need to complete as we'd already opened the accounts (me just before applying for the mortgage and OH between the phone application and completing the forms)

i got the impression there was only one form.

i'll check it when i go to the other house later in the week

Locoblade

Ive just filled in an application for a FD offset mortgage and now you've said that, I don't remember there being a date of transfer on there either, but I may be wrong. Stupidly I didn't keep a copy of the application so I'll have to call them and make it clear that I don't want ours to transfer before our current fix runs out.

straddie

We're part way through the process and I don't recall specifying a date on our application form either - I can't be sure, but I seem to recall thinking it odd that there wasn't a date on there, but I may have misremembered. I have told them on the phone when we wish to start however. When I asked them about the logistics of switching over, they said that they would request a redemption figure a few days before, and if there were any ERC on there, they'd phone me before proceeding to check the situation. I assumed this was standard procedure, but perhaps it's only because I spoke to them about it?

Edit: if I remember, I'll check the photocopies of the form when I get home and see.

vwchris

Im an existing First Direct customer who is going through the remortgage process at the moment (from the Abbey).

There was definitely a box on my form for the date to start the mortgage, and a check box for whether it would incur any early repayment charges.

I was also told that if there were any charges added to the mortgage from the Abbey, they would phone me first to see if it was OK to add them - from reading other peoples posts on here it suggests that they do ring you - maybe ask them why they didn't?

Locoblade

Ah, thats where it varies possibly, Im not currently an FD customer so I need to set up a 1st account as well as the mortgage. The form is all in one applying for the 1st account and the loan so I suspect that form doesn't have those details on. It may have had a date of transfer on the form, but I certainly don't remember there being any checkboxes to accept early repayment charges etc.