Mortgage Transferred?

gibby

We recently took out a new mortgage through L&C for GMAC and a few motnhs later it was sold to another lender.


Is this legal?
also the new firm only have 0870 numbers and take ages to answer and the statement is so complecated I cant understand it.

is there an advice group that can expalin to me for free?


G

TheManWithNoName_3

why not ask L&C to explain it

herbiesjp

You will find that Gmac do this all the time - you apply for a loan on their forms, but they subsequently sell on a tranche of their clients to other lenders, which is why you will get sent out a new direct debit mandate for the new lender.

The mortgage offer letter does state this fact normally. It should not affect the product or terms you have applied for.

alanobrien

We experienced something similar.
In our case the mortgage was with Promise and they sold the business to Woolwich

They stated that they would pay any exist charges if you decided to move at the end of your fixed rate.

We did and it took over 6 months, a lot of correspondance and a complaint to the regulator to get them to repay the charges.

MarkyMarkD

Most lenders' terms & conditions allow them to sell on the loans - it's a sensible way for them to manage their capital and it's very common.

Northern Rock do it all the time; A&L have done it to a limited extent. And I'm sure other "mainstream" lenders also do it frequently. And then there's the transfer of business type loan transfers.

So, if you signed up to it when you accepted the loan (in the offer terms) you haven't got any grounds for complaint.