False information given to me by Northern Rock

starstruck1

My 3 year fixed rate expires on May 1st this year so in January I started to look around. I knew I had penalty charges until 1st May so I phoned NR twice to confirm that I could leave after that date with no additional charges. On two seperate occasions I was told that this was the case, I could leave them with no other charges.
I recently applied to HSBC for a fixed rate (10 year) deal and all was accepted and progressing well.
When HSBC's solicitors asked NR for a closure balance ther was an additional £1k listed as "help with costs". This was some sort of deal to cover legals etc. I queried this with NR, explaining my two telephone calls, and they have stated that the information I was given was correct as "help with costs" is a "fee" not a "charge", which I asked about.
Consequently I now have to pay them an additional thousand pounds as I can't cancel my new mortgage with HSBC for which I have paid £600 booking fee.

I think I have been rather badly treated as I twice asked them for additional charges and was told twice that there would be none. I guess my only recourse is the the Pinancial Ombudsman ?

Any advice very gratefully received.
I do agree that I signed the agreament but that was three years ago and I trusted NR to tell me verbaly about any charges.

Thanks

Shaun

opinions4u

starstruck1 wrote: »

I think I have been rather badly treated as I twice asked them for additional charges and was told twice that there would be none. I guess my only recourse is the the Pinancial Ombudsman ?

Only after you have exhausted the NR complaints procedure and received a letter of deadlock.

I do agree that I signed the agreament but that was three years ago and I trusted NR to tell me verbaly about any charges.

The problem that the Ombudsman has is that NR have complied with the terms and conditions. What you will need to do is prove that you have made a finacial decision on the back of the information provided that has made you better off.

and they have stated that the information I was given was correct as "help with costs" is a "fee" not a "charge", which I asked about.

Get that in writing from them. Because I doubt the Ombudsman would agree with them!