Principality mistake with my mortgage.

HenryMungo

In September 2007 I fixed my mortgage of 120,000 at 6.35% for 3 years with the Pricipality B/S.

My mortgage is in 7 parts as I have periodically extended, upgraded the property.

Despite the Principality assuring me they had switched all 7 loans to the 3 year 6.35% they did not, they left one loan on the SVR, at the moment it's saving me a small amount of money.

Initially they offered to swith the SVR loan to 6.35% - personally I dont think this is reasonable as they now have products with a much lower interest rate.

My question is should I be able to ask for a completely new product on all 7 loans, after all they did mess up my original request for all loans to be fixed at 6.35% - would their failure to provide me with what I asked for negate the 6.35% fix and allow me to negotiate a new fix at a lower rate.

Thanks
HM

ILW

HenryMungo wrote: »

In September 2007 I fixed my mortgage of 120,000 at 6.35% for 3 years with the Pricipality B/S.

My mortgage is in 7 parts as I have periodically extended, upgraded the property.

Despite the Principality assuring me they had switched all 7 loans to the 3 year 6.35% they did not, they left one loan on the SVR, at the moment it's saving me a small amount of money.

Initially they offered to swith the SVR loan to 6.35% - personally I dont think this is reasonable as they now have products with a much lower interest rate.

My question is should I be able to ask for a completely new product on all 7 loans, after all they did mess up my original request for all loans to be fixed at 6.35% - would their failure to provide me with what I asked for negate the 6.35% fix and allow me to negotiate a new fix at a lower rate.

Thanks
HM

Cannot see why, you seem to have benefitted from any error.

silvercar

They made a mistake. They have offered to put it right by putting you in the situation you would have been had the mistake not been made. You now either accept the offer to correct the mistake or you reject it.

If you had incurred time and postage to get the matter sorted I would also have expected a small payment of around £25 in compensation, but as you have benefitted by the lower interest rate this isn't warrented.

HenryMungo

I cant remember what the SVR rate was when I took out the loan in 2007 -There is a chance I was paying more then than I should have been until the interest rates dropped.

I'm certainly not happy with the way this has been handled, I made numerous phone calls to find out what had happenend before the Principality admitted their mistake.

The irony is that I had to wait until all my loans had finished their existing fixed rates before I could fix all 7(the loans were fixed at different rates and length of time as and when I took them out) I tried to fix each loan as the fix rate deal ended but the Principality wouldnt allow me to do this as they said they dont 'part fix ' I would have to wait until all loans on fixed deals had run their course, obviously this left some of the loans on the SVR for some time.

Well it looks to me that they have 'part fixed' leaving one loan on the SVR and fixing the other 6.

I paid well over the odds for some time because they wouldnt part fix.

HM