Help - Option Mortgage Facility withdrawn!

Freepost

I understand what your both saying and I understand why a lender may wish to make such changes but from my perspective it doesn't make it right to force these changes.

My mortgage was changed to an interest only mortgage back in 2000 when I stopped work to look after my wife but an annuity is in place to pay off my mortgage at the end of the term.

Do I have any redress with their changing my mortgage?

F.

kingstreet

Freepost wrote: »

Do I have any redress with their changing my mortgage?

Only if they failed to act within the terms of the mortgage when you took it out.

Leon_W

Hi Kingstreet.

I can't recall entirely but Woolwich were never the cheapest deals anyway. I suppose you have to compare a single lenders range of mortgages rather than against each others. Abbey flexis are more expensive. Intelligent Finance had offsets which were always more expensive than standard mortgages aswell. I can remember explaining these as having the fancy chequebook and pen, borrowback etc but at the end of the day somebody had to pay for the extra flexibility. Some clients wanted it some didn't but when lenders unilaterally and fundementally change a product it really annoys me as it reflects badly on me.

Need a bit of flexibility on a conventional mortgage Sir ? No problem. Northern Rock let you borrow back at no extra cost.

Was I right with my advice ? Yes, of course. then Northern Rock do the dirty and start claiming any borrow back has to be agreed subject to underwriting ! My clients should be rightly angry and I'd stand alongside them !

The moving of goalposts is always to the lenders advantage. Skipton base rate promise was another. Gets my blood boiling.

Leon_W

I think what we are both saying freepost is that you'll have to check your mortgage contract and get legal advice for a definitive answer. As you can see, us mortgage brokers get just as annoyed as clients when lenders think they have the right to change a mortgage contract to a clients detriment.

Whether it's legal or not is another thing but they seem to get away with it.

kingstreet

Leon_W wrote: »

The moving of goalposts is always to the lenders advantage. Skipton base rate promise was another. Gets my blood boiling.

I agree. Don't mistake my reasoning of their actions as approval.

The OP may make a complaint and take it to FOS as that's where it will more than likely end up. I just don't expect they'll have left a loophole for him to use to his advantage.

Freepost

Thank you for your replies and advice. I've asked the lender to send me a copy of the letter that they say they sent two years ago, I'll see what the details are then and may comeback for more advice.

Once again thank you.

F.

getmore4less

The premiums for offsets were relatively low when the low cost trackers became availabe.

I don't think this case in an offset, never heard of "option" mortgage that is probably specific to one lender or is the OPs term for what they they have.

AFAIK no one with offsets have had there offset funds taken to reduce their mortgages

Barclays/woolwich managed the overpayments on their mortgages through a reserve account for some borrowers this was reduced/withdrawn, as an offset borrower mine was not touched, know idea if this applied to all offset mortgages.


Without knowing the lender it will be difficult for anyone to have knowledge of the typical T&C's in place.

Freepost

getmore4less wrote: »

The premiums for offsets were relatively low when the low cost trackers became availabe.

I don't think this case in an offset, never heard of "option" mortgage that is probably specific to one lender or is the OPs term for what they they have.

AFAIK no one with offsets have had there offset funds taken to reduce their mortgages

Barclays/woolwich managed the overpayments on their mortgages through a reserve account for some borrowers this was reduced/withdrawn, as an offset borrower mine was not touched, know idea if this applied to all offset mortgages.


Without knowing the lender it will be difficult for anyone to have knowledge of the typical T&C's in place.

Okay, I said I didn't particularly want to name the lender but if it helps;

Sainsbury's Bank Option Mortgage

I also have a letter from them that states;

" You may drawdown funds up to the limit available at any time"

There is no mention in the terms and conditions for them to remove the facility!

F.