Can bank alter terms of mortgage??

clarkie18

A few years back my wife used to work for RBS and we arranged a staff mortgage at a very good rate. After she left we expected to be contacted about the mortgage but never were, as this was maybe 5 years ago and we are now looking at other options can they now say as she was not staff we were not allowed the staff rate, and we owe them cash? Or they cant touch us because it's a legal contract?
Thanks

InMyDreams

What do the terms actually say about your wife being staff? Are you sure you are not the ones to have altered them first by not contacting them? This situation can't be uncommon, surely? Is there nothing in the T&C about it?

magpiecottage

They are almost certainly able to change it to the rate it charges the public but that does not necessarily mean they can can change it retrospectively.

The Financial Ombudsman Service has given an indication of its views here.

Your circumstances are not quite the same but you and the bank appear to both have some fault.

On the other hand, interest rates have now become so low that the rate available to the public may be little more, and possibly even less, than the staff rate.

opinions4u

Employment T&Cs were terminated by you and as such this will give them the right to vary the mortgage T&Cs.

So they could, potentially, ask for backdated interest.

I'd suggest taking your next mortgage out with a new lender and not raising any questions with RBS on the subject .