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Change from Int only to repayment over phone

Bishboshjb
Posts: 7 Forumite
I enquired by telephone about changing from interest only to repayment. Nothing came in writing, so had to phone up a couple more times. Next thing I know, my mortgage payment for end April has gone up £1000, and a letter arrives, stating the new amount. I didn't get a quotation, or confirm in writing that this is what I wanted to happen. A phone call to Barclays said that I cannot now swop back. I've written to them today saying that I couldn't make the decision to change until I had a quotation, and to swop me back. Does anyone know if they can do this without me confirming in writing that this is to happen ?? £1,000 extra a month I cannot afford !
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Comments
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Some more details of your mortgage may help.
Do you have a repayment vehicle for your mortgage in place?0 -
Thanks for reply. Yes we have endowment policies to cover the mortgage amount. I just don't understand how they can change you from an interest only to a repayment mortgage, from a telephone enquiry without getting our signatures in agreement. What do you think ?0
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This si the danger of dealing with call centres by phone. They take liberties.
You now need to write and tell them that you only ever asked for a quotation and to put things back the way they were. If that does not do the trick, you need to come back.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Have written as you suggested, and will let you know outcome. Many thanks0
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I am still in dispute with Barclays. They said they have listened to my telephone call and I agreed to swop to a repayment during the telephone call. No figures were discussed, and it is a joint mortgage, so how on earth you can agree to something when you don;t know how much it is going to be I have no idea. I have asked for a transcript of the call, but they have not yet been forthcoming. They also asked me to provide proof of repayment vehicle, and they may consider swopping me back to interest only. I have sent them copies of endowments, PEPs, ISAs etc. but am about £45k short. Mortgage is £274k (yikes!) but still got 14 years left to pay it. Been on interest only for 11 years, and never missed a payment. Why oh why did I phone Barclays. I cancelled the direct debit for the higher amount (repayment figure), set up a standing order for the lower amount (interest only figure). Barclays now sending letters chasing what they consider to be an overdue figure and slapping charges on. Can they do this when we are in dispute? I have been in touch with the ombudsman, they wont do anything until I have Barclays final decision. The financial services authority were great, but can't seem to do much at the moment, if at all. Anyone got any ideas or suggestions ?? thank you0
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I changed mine over the phone with another lender and it went through fine - I did, however receive written confirmation of all the new details through the post within a week or so. So it can be changed without signature but you did not receive any confirmation paperwork either so you must emphasise this aspect in your negotiations.
Sorry can't be of further help but you must be in the right if you received no paperwork after the event either.0 -
Thanks SandC. Was yours a joint mortgage too ?
Can perhaps understand a phone call is sufficient if a one person mortgage, but if in two names, I expected us to both to have to sign something.
As you stated, I did not receive any paperwork with any details whatsoever, until AFTER the first higher payment was taken from our account, and then it was just a piece of paper saying the Required Amount is £xxxx. Bit of a shock to see it was £1000 more than normal. I am wondering if you had a chance to change your mind when you received the paperwork, ie a 'cooling off' period? Be interested in your reply.
Thanks.Julie0 -
Under the direct debit guarantee they have to give notice of any change to your monthly payment prior to it coming out. Certainly there is no requirement for you to have to sign anything though.
It's going to come down to what the call centre recording says. I do find that with Barclays (especially when dealing with overseas callcentres) the service over the phone can be very variable.0 -
Returning to your original post , what were you expecting?I enquired by telephone about changing from interest only to repayment. Nothing came in writing, so had to phone up a couple more times
As any quoted figure would only have been valid at that very point in time.
When you say you are £45k short of repaying debt. How do you arrive at that figure? As your investments , particularly the endowment, have an unquantified maturity value.
Is Barclays current issue that you appear to be building insufficent capital up to repay your debt at the end of the mortgage term ?0 -
Bishboshjb wrote: »Thanks SandC. Was yours a joint mortgage too ?
Can perhaps understand a phone call is sufficient if a one person mortgage, but if in two names, I expected us to both to have to sign something.
As you stated, I did not receive any paperwork with any details whatsoever, until AFTER the first higher payment was taken from our account, and then it was just a piece of paper saying the Required Amount is £xxxx. Bit of a shock to see it was £1000 more than normal. I am wondering if you had a chance to change your mind when you received the paperwork, ie a 'cooling off' period? Be interested in your reply.
Thanks.Julie
No, mine was just for me. I don't think there was a cooling off period in the paperwork as I had agreed to it all on the phone - I was just making the point that nothing had to be signed for it to go through. I honestly don't know if things would be different on a joint mortgage.
Have you ever done anything else, made any other changes at all with regards to the mortgage and can you remember whether they required signatures of both of you then? Like if you've come to the end of a deal and started another one? Again, in my case it's all been done by phone without any requirement for signatures.0
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