Mortgage change of terms and conditions

opinions4u

new_home_owner wrote: »

sureley this is misselling and the FO should side with you every time, how can someone sell something to you then change the terms half way through the deal, and if they do it shouldnt have to cost you anything.

They've stopped lending. Simple as that. They have given borrowers 6 months notice saying if they want to use their portable option then applications have to be made before the end of April 2010 (suggest you check the exact date).

definatley make a complaint i did earlier in the year and if you point out the facts im sure the mortgage company will honour what they said they would when they sold it to you.

They never promised a new mortgage to the OP. They said they would port the product if they accepted the OP for a new mortgage. That is not a guarantee by any stretch of the imagination. If they aren't taking new applications, you don't meet their criteria so you can't port.

The FOS will not force any lender to give a mortgage to anybody and will not take a complaint on that asks them to do this.

TEDDYRUKSPIN wrote: »

Hmmm.. subprime lending.

As far as I am aware, IF mortgages were not sub-prime. Indeed, they were targeted at higher rate taxpayers.

tsmiller62 wrote: »

If I want to move I have to pay off the mortgage and pay hefty redemption penalties.

They will allow you to avoid these penalties if you take your next mortgage out via Halifax or Scottish Widows.

The IF site clerly states "Applications for new mortgage products are subject to the lending and underwriting criteria of Scottish Widows Bank or Halifax. If you're still within your special rate period, we won't apply the early repayment charge if you choose the alternative mortgage product. We'll also pay our remortgage legal and valuation costs".

So there is a way out.

dunstonh

sureley this is misselling and the FO should side with you every time, how can someone sell something to you then change the terms half way through the deal, and if they do it shouldnt have to cost you anything.definatley make a complaint i did earlier in the year and if you point out the facts im sure the mortgage company will honour what they said they would when they sold it to you.

Portability is rarely included in the terms and conditions of the mortgage. Even where it is included, it is subject to the lending criteria they have in place at that time. Lending criteria is never cast in stone and is a commercial decision and the FOS will not rule on commercial decisions unless discrimination is taking place.

SouthCoast

IMO complaining to the FOS is a waste of time.

If the mortgage lenders need to, they can always play their Force Majeure card.

magpiecottage

I think Dunstonh is right.

Portability is generally subject to the new loan meeting the lender's usual criteria - they won't let you move your £250K mortgage to a beach hut!

On the other hand, simply saying "we don't lend any more" is not force majuere, it is a commercial decision to pull out of the market and likely to fall foul of the FSA's "treating customers fairly" initiative - specifically outcome 6.

But they must first be given an opportunity to put things right before the FOS will look at ti.

If you want to put a bit of pressure on IF you could tell them that if you lose the property you want to buy as a result the delay, you will be claiming for that as well.

budda79

Can anyone help me with this

I have had a mortgage with Nationwide for nearly 4 years and we took the mortgage out due to it offering a 12 month payment break, we went in to see if we could take a payment break as we are struggling with money at the moment and we were told that we could now only take a 12 month payment break if we were on maternity leave, but we could take 3 months at a 25% reduction due to the terms and conditions changing, due to the current climate.

Can the Nationwide do this as I believe that when we took out the mortgage with them it was a bidding contact and we agreed to the terms at the time we took out the mortgage.

Can anyone let me know if this the case and I can get my 12 month payment break without being on Maternity pay or if their new terms apply to us.

dunstonh

Can the Nationwide do this as I believe that when we took out the mortgage with them it was a bidding contact and we agreed to the terms at the time we took out the mortgage.

Authorised arrears (what you call payment holidays) are not part of the contract. They are a feature that the lender can offer at its discretion. The criteria is and always has been subject to change.

budda79

But surely if they have sold this as part of the product when I took it out, it has therefore been missold as i believed that i could take this payment break and didn't have to be on maternity leave. My brother has the same mortgage and is on his own so he can not take a payment break if he wanted as he could not get pregant?

budda79

is there anyway that i could get the mortgage company to allow me the 12 month payment break without being on maternity leave?

dunstonh

budda79 wrote: »

But surely if they have sold this as part of the product when I took it out, it has therefore been missold as i believed that i could take this payment break and didn't have to be on maternity leave. My brother has the same mortgage and is on his own so he can not take a payment break if he wanted as he could not get pregant?

It was not sold as part of the product. Many things in the mortgage are in the contract. However, payment "holidays" are not. They are a discretional feature. Not a contract event.