Newcastle are trying to change a signed deal

skier1066

Hi,

I am an existing Newcastle Building Society mortgage customer. I have two parts to my mortgage and the main chunk is finishing its fixed rate 5 yr deal on the 30th June. I decided to stick with the Newcastle bs at a 2 year rate of 4.75%, signed the forms and sent them off. I got a phone call on Monday to say they had made a mistake, the rate I was offered was only available to new customers, not existing, and that despite them acknowledging they made a mistake I would have the choice of moving to their 4.95% fixed rate for 2 yrs or change to another Newcastle deal or leave. If I decide to leave them the exit fees are over £800 and thats not counting the other part of the mortgage I also have with them.

They would not entertain honouring there original offer of the 4.75% rate and told me I would have to raise a formal compliant if I wasn't happy.

My question is this, they sent out the forms, there was no mention this deal was for new customers only and they left telling me about this mistake until 4 days before my old fixed rate finishes.

Is there anything else I can do or is it a case of write the complaint letter and see what happens. My concern if if I accept the new fixed rate I may be waiving my rights away, I'm not keen to continue on a variable rate until this is resolved.

In fairness they did say they would return the difference from the new 4.95% rate and the variable rate for the first month but I'm more agreived that I have to take the 4.95% in the first place for the next two years.

Am I being unreasonable ?

Thanks

Skier1006

cattie

Not sure if you're being unreasonable or not, but sadly so many lenders now have higher rates for existing customers. I know the Halifax have a policy of not offering existing customers who are remortgaging the same low deals that they offer new customers.

A few years ago they used to offer a decent customer loyalty mortgage, but sadly dropped this.

I can understand you not wanting to go on a svr until you feel you have tried your best to resolve what has happened. I wonder if, in the meantime there is a no fee, no penalty discount tracker you could change to if you didn't want to sign up for the fixed rate deal yet?

Robert_Sterling

Nationwide ... Proud to be different.
All members are offered the same deals as new members.