Hamstrung Mortgage

Florrie_Fimble

Hi all - we have an off-set mortgage with First Direct. We moved it to them from the Woolwich and at the same time put it into both our names (previously it was just my partners). We have our savings and our current accounts linked to it and we can re-borrow the money at any time just by transferring it back to one of our accounts.

Now - the problem has arisen when speaking to First Direct on the phone. They have told my partner that since they have *just realised* that his mother has a £10k stake in the house which has been legally noted, we shouldn't have been allowed to have this mortgage and can therefore not re-borrow money as stated in our T&C's.

I now feel like we've paid alot of money to be tied into a mortgage that we can't even use properly and at a rate that it is not beneficial to us since we cannot now re-borrow if we ever wanted/needed to. Any suggestions? should our solicitors have picked this up? Is it worth approaching First Direct and asking for them to alter our mortgage at no futher expense to us since they have given us a product and cut off one of the more useful features?

Any thoughts appreciated.

silvercar

Is it worth approaching First Direct and asking for them to alter our mortgage at no futher expense to us since they have given us a product and cut off one of the more useful features?

Definitely complain. They have given you a mortgage and are not keeping to its T&C. they should either keep to its T&C or move you to a different product. What's the point of an offset mortgage if you can't have access to the savings pot? In fact, they have given you this mortgage so they should keep to its T&C.

Hunnymonster

Florrie_Fimble wrote:

Now - the problem has arisen when speaking to First Direct on the phone. They have told my partner that since they have *just realised* that his mother has a £10k stake in the house which has been legally noted, we shouldn't have been allowed to have this mortgage and can therefore not re-borrow money as stated in our T&C's.

Are they not admitting that they were negligent in their advice to you on buying the product initially by saying that ? I'm not a lawyer, nor a financial advisor nor do I claim any commonsense

Florrie_Fimble

Good news people - FD are sticking to their T's & C's. After speaking to them again it appears there was some confusion over the notes on the account.

Because we should never have been given the mortgage it went up to some senior people who approved it - completely. However a note was put on to say that we would be allowed no further borrowing - ie, couldn't re-mortgage again. The person that phoned us said we could have no more money out of the mortgage.... ie, the pot. That was incorrect.

So - this appears to have been down to confusion over terms more than anything else. I'm now writing another letter to my solicitor expressing my displeasure - FD say that all mortgage people should know that they do not offer mortgages with another charge on the property - so if we ever do want to re-mortgage we are going to have to go through the hassle of moving lenders again and possibly re-incurring legal fees!

I have to say people - FD were great - after i spoke to the mortgage dept they rang me back 20 minutes later with the good news and clarification

Now does anyone have any advice for complaining about a solicitor.... !!