Have I been mis-sold a mortgage? Help!!!

pablohappah

Hi thanks a lot for reading, I hope this makes sense and that you can help me.

I originally took a mortgage with Halifax in Dec 2006 this was a fixed mortgage on a 3 year term, due to expire Dec 2009.

As I'm sure you're aware, interest rates were shooting up in 2009 so I decided to re-mortgage early as I was afraid that rates would be too high come Dec 2009.

So Oct 2009, I re-mortgaged committing to a further 3 year product.

I added the redemption fee to the new mortgage and started a new product which I must add was at a higher rate than my previous... I was being cautious

This is where it gets confusing.

When I re mortgaged, I asked the woman who sold me the product (I dealt directly with Halifax, no middle man) in the scenario that interest rates were to drop, would I be able to revert to variable rate and add the redemption fee to the mortgage, the answer was YES.

However, Feb 2010 when interest rates were plummeting I called the Halifax to ask to revert to the variable rate, to take advantage of the lower rate as agreed in the meeting when the product was sold to me.

I was informed then, that this was a gesture of good will that they offered to all customers but due to the fact that so many customers were asking to do this, they had now revoked on the good will gesture and that unless I paid the fee upfront I wouldn't be able to go to variable rate.

When I asked why I wasn't informed/advised/warned of this change I was told that I was being unrealistic to expect this as they have so many different customers.

So basically, they said they would do something, have agreed that they used to do it but then have refused to do so upon request.

Any help would be hugely appreciated.

Thrugelmir

Read your mortgage contract. It will contain an exceptional circumstances clause. The aftermath of the collapse of the international banking system comes into this category.

koexelek

It's always OK for the lenders to move the goalposts if it is in their favour... but not for a borrower:o

dunstonh

I dealt directly with Halifax, no middle man

Which effectively means you bypassed independent advice and saw either a bank clerk on a no-advice basis or a sales representative.

So basically, they said they would do something, have agreed that they used to do it but then have refused to do so upon request.

Not quite. What they had in place was a discretion to override the terms if they wanted. However, they removed that discretion. So, it was never guaranteed or in your terms & conditions that you could switch to a variable rate. Local discretions and internal changes which do not have any impact on the T&C of your product do not require you to be notified.

Unless you have it in your terms and conditions or in writing that you were guaranteed to have this option then you have not been mis-sold.

opinions4u

pablohappah wrote: »

As I'm sure you're aware, interest rates were shooting up in 2009 so I decided to re-mortgage early as I was afraid that rates would be too high come Dec 2009.

Interest rates only fell in 2009.

So Oct 2009, I re-mortgaged committing to a further 3 year product.

If you'd held on two months, you'd have avoided the ERC.

I assume you mean 2008, not 2009 - but even then, rates were not rising.

When I re mortgaged, I asked the woman who sold me the product (I dealt directly with Halifax, no middle man) in the scenario that interest rates were to drop, would I be able to revert to variable rate and add the redemption fee to the mortgage, the answer was YES.

Which was a concession allowed at the time. Indeed, you could have taken this route at the time instead of the new fix.

However, Feb 2010 when interest rates were plummeting I called the Halifax to ask to revert to the variable rate

I assume you mean Feb 2009.

I was informed then, that this was a gesture of good will that they offered to all customers but due to the fact that so many customers were asking to do this, they had now revoked on the good will gesture and that unless I paid the fee upfront I wouldn't be able to go to variable rate.

But the fact that they would let you go on to the variable rate is something many other lenders wouldn't allow.

So basically, they said they would do something, have agreed that they used to do it but then have refused to do so upon request.

It wasn't contractual. You're snookered.

maninthestreet

Were interest rates really 'shooting up in 2009 ' ???

TMSL

This is an interesting post as if I would have said yes to the question about being able to revert to SVR I would be held wholly resposible by the FSA etc,in the event of a complaint, as I provdie advice and I am accountable for it. As it happens if you would have asked me the question I would have said that a lender can change its lending policy at any time so I cant give you any guarantees.

However, bank advisers "sales people" generally work on a non advised basis so you would have no comeback for the "advice" given as technically they dont give advice. Its very confusing for consumers but another reason to be very wary of the banks. Its the FSA (Government) that allows it to happen its to the detriment of the consumer but benefits the banks who the government want to see suceed.

orangina

The bank advisor (i use this term loosly) told you what the criteria was at the time - all be it discretionary and the lender has changed their criteria so that they no longer offer this service.

So did they intentially mislead you, I would say no, although they should have said the caveat (?) that lenders always reserve the right to change criteria at any time in the future so if its not written in your offer its not guarenteed.

magpiecottage

I agree with other posters.

In theory it is possible for a financial institution to be forced to honour an undertaking an employee has given on its behalf even if they were not authorised to do so.

However, if you have no evidence you will have an uphill battle persuading them that the employee did say that.

pablohappah

However, if you have no evidence you will have an uphill battle persuading them that the employee did say that.

I do actually have evidence in writing from halifax after they declined the offer, saying that they did offer it, but then revoked it.

But from what I'm understanding, the advisor could tell me anything and it doesnt stand at all.... ridiculous

To all the replies, thanks very much.

hcb42

I think the change has done you a favour.

If you had to pay the ERC yourself, you would not be as likely to simply add it to a mortgage, as you will be paying it off for ever and a day. I dont think you have been mis sold, to answer the question, the market has changed