Bradford & Bingley - Redemption Penalty?

_Andy_

RufusFrog wrote: »

I'm not sure I agree. If the mortgage lender's broken their side of the agreement (the deal is portable to another property during the redemption period), then why should they be able to apply the penalty?
Trouble is, the portability stuff may just be in the glossy waffle, rather than in the strict legal Ts and Cs. Check it out as you may have a case if they are in breach of contract.

The lender isn't saying they can't port it - just that they won't provide further lending. there is no breach of contract whatsoever.

dunstonh

I'm not sure I agree. If the mortgage lender's broken their side of the agreement (the deal is portable to another property during the redemption period), then why should they be able to apply the penalty?

Its portable subject to meeting the lending criteria in place at the time.

sdooley

If the mortgage is a fixed deal for five years couldn't you keep it with the B&B at the same level (and rate) against your new house and get a second mortgage from another provider for the balance. So long as the total borrowing is within the new bank's lending limits that should be ok.

haggisninja

Didnt think you could have 2 mortgages from different lenders for the same property. If you can may sort my predicament out.

As a B&B customer and wanting to borrow more to buy another property, being told I cant as they are not lending anymore and then being hit with a early redemption fee to move to a another lender and a 12k stamp duty fee is leaving me feeling that the government is trying to get their pound of flesh and then some . Not sure this is the right strategy to try and kick start the economy.

Have contacted the FSA to see if they can try and get someone to see common sense as would have no problems staying with the B&B if they started lending money again.

dunstonh

Have contacted the FSA to see if they can try and get someone to see common sense as would have no problems staying with the B&B if they started lending money again.

The FSA dont handle complaints. You usually find the FSA sympathise on the phone and just pass your info back to the party involved to look at.

It does have to be noted that early repayment charges are a consequence of you getting a special offer deal. Deals that usually save you a lot of money over the deal period. The choice to use a deal is your own and the lenders never guarantee any future lending. So, purely from a compliance point of view, any complaint on this would be a non starter. Your only hope is the lenders willingness to take the financial hit for you taking the mortgage away from them

haggisninja

mentioned local MP and TCF and they have agreed to waiver any early payment penalty

opinions4u

Excellent news!

Very pleased for you.

jon_boy75

Cotinuing this subject, I think we have a good case, but i could be wrong. We had a mortage with Mortgage Express, underwritten by Bradford&Bingley. Its been fixed for 3 years, ending December 31st 2008. We've made the final payment on December 1st, which takes us to the end of the fixed term. Sold the flat, exchanged contracts and now moved out. We just found out they took the redemption fee anyway, about £6000.
We exchanged on December 22nd, as it was impossible to arrange transfer on December 31st or around that date. The lender said that we were still liable for the penalty despite having made the final payment. They said it wasnt about the money, but the Terms & Conditions! So, the Terms & Conditions do indeed state that if we repay the mortgage before Dec 31st, we MIGHT be liable for the fee.
Yes, I know, some might say that its all about the terms & conditions and there's nothing I can do. But I'm asking for common sense to prevail here. According to their system, the customer is forced into the Standard Variable Rate. I know its quite cheap now, given the economy, but we just thought we would get to the end of the term and move out.
Using the bank charges argument, I'm certain this is 'unfair and excessive' whether its in the T&C or not. I guess I'm just asking for advice, or if anyone has encountered the same or similar problems?
We have put this in writing and will see if we get someone with some humanity and a sense of fairness! I think B&B are now Government owned?? If I remember rightly. Anyway, let's see what happens. That's our deposit for a house, so fingers crossed.

Merry Xmas y'all!
Jon

dunstonh

So, the Terms & Conditions do indeed state that if we repay the mortgage before Dec 31st, we MIGHT be liable for the fee.

Almost certainly they do. The tie in tends to end the same day as the deal. So, if the deal was to the 31st Dec 08 then that is when you would expect the tie in to end.

Using the bank charges argument, I'm certain this is 'unfair and excessive' whether its in the T&C or not.

The bank charges argument doesnt apply as they fall under penalty charges (or at least that is what the court course is deciding). The mortgage charges are contract events.

You will be relying on the goodwill of mortgage express to get this refunded or reduced. You could argue that you were given incorrect information and that led to the charge being levied. If what you say is true, you do have a good case on that point but dont use the bank overdraft charges case as thats a non starter.

TREVORCOLMAN

A friend of mine has B&B Shares - are they correct that the shares are now worthless?

Thanks