When is a Mortgage Provider not a Mortgage Provider??

deedee71

I have an offset mortgage with Intelligent Finance, taken out in 2008 (no lifetime tracker unfortunately).

IF are part of HBOS and last year mortgage holders were notified IF would no longer be doing mortgages and at the end of any deal, I could transfer to any mortgage offered by Scottish Widows with no penalties or detriments. I would be able to continue with my offset accounts, but the mortgage itself would be provided by SW.

However, they have now changed their mind and IF say they will continue to offer mortages.

At the moment they are only offering ONE mortgage product!!! A two year fix at 4.49% with a £999 fee.

I feel they are being underhand. They obviously want rid of their mortgage customers, and are offering a token product to get round ? FSA rules??

I could revert to the SVR and take my chances with it but to get a deal - fixed or tracker I would need to switch providers, something I don't really want to do. ( My ex has a second security on the property for the next 10 years and it was difficult enough getting the mortgage in the first place).

The question is, who can I approach with these concerns. Would it be the FSA, or is there nothing I can do?

Thanks for any advice/thoughts.

Debt_Free_Chick

I don't see you can do anything.

You can't force any provider to sell something they don't, in the same way as you can't force a provider to sell to someone they don't want to.

What puts you off switching provider?

opinions4u

deedee71 wrote: »

At the moment they are only offering ONE mortgage product!!! A two year fix at 4.49% with a £999 fee.

They are not under any obligation to offer a range of mortgage products.

I feel they are being underhand. They obviously want rid of their mortgage customers, and are offering a token product to get round ? FSA rules??

There is no rule, FSA or otherwise, that forces them to offer any product choice.

I could revert to the SVR and take my chances with it but to get a deal - fixed or tracker I would need to switch providers, something I don't really want to do. ( My ex has a second security on the property for the next 10 years and it was difficult enough getting the mortgage in the first place).

I thought their SVR was 2.5% with a guarantee to track at BofE plus 2%. That may still prove to be a good value long term deal.

The question is, who can I approach with these concerns. Would it be the FSA, or is there nothing I can do?

There is nothing you can do. Other than be grateful that their SVR is just about the lowest on the market.

deedee71

As I've said, my ex has a second security. This makes mortgage providers jittery, and incurred extra legal fees last time.

I just feel that if IF have taken away the option to swtich to a Scottish Widows product they should offer a range of their own products.

deedee71

opinions4u wrote: »

I thought their SVR was 2.5% with a guarantee to track at BofE plus 2%. That may still prove to be a good value long term deal.

Their mortgage department did not mention the SVR tracked BofE, only that the SVR was 2.5%. Yes it is low at the moment, but I have 23 years still to go - I didn't want to have to switch provider at the end of my 2 year tracker for the reasons above.

opinions4u

deedee71 wrote: »

Their mortgage department did not mention the SVR tracked BofE, only that the SVR was 2.5%.

It might be worth digging out your original paperwork to check this then - and read the small print to see if there's an escape clause from them.

Yes it is low at the moment, but I have 23 years still to go - I didn't want to have to switch provider at the end of my 2 year tracker for the reasons above.

I don't see an exciting range of alternative products at Scottish Widows Bank either. And their SVR is 3.99%.

deedee71

I've given IF another call and my mortgage will definitely not revert to an SVR that tracks the BofE rate.

Oh well looks like I will be stuck on the SVR until I can save up for the huge legal fees (again)

dunstonh

I just feel that if IF have taken away the option to swtich to a Scottish Widows product they should offer a range of their own products.

Its just part of the ongoing consolidation going on at Lloyds.

Also, no lender has and requirement to offer anything other than what you agreed when you took the mortgage out.