Redemption fee when mis-informed

angry_chap

Hello

I have a mortgage with bank of ireland. I am on a fixed rate until 2013 (jan) with approx £3500 as an early redemption fee

1 year ago I decided I wanted to move house, I rang BOI and they told me I could port my mortgage and gave me an agreement in principle to borrow an extra £50k to move to a bigger house. As I was topping up my existing mortgage they would not charge me the early redemption fee and I would borrow the extra from them.

Based on this information I put my house on the market.

2 months ago I still hadn't moved so decided to drop my asking price, again I rang BOI to double check the situation and they again gave me the same agreement in principle as above.

Based on this information I dropped my asking price.

Last week I sold me house based on the info given by BOI and so rang BOI to formally apply for the mortgage. At this point they told me that they where no longer allowing top-up mortgages to existing customers and my only option was to move to another morgage lender but that if I did this I would be liable for the rdemption fee of £3500.

I cannot believe they can actually do this, everything I have done was based on info from them which is now incorrect, I have even agreed with work to move jobs to elsewhere in the country. They have effectively limited my spending power by £30k.

When I speak to them they are simply not interested.

Can they do all this or can I pay what I owe and make them waive the penalty????

Thrugelmir

angry_chap wrote: »

Can they do all this or can I pay what I owe and make them waive the penalty????

Yes they can. BOI appear to be pulling out of the UK mortgage market.

This is the credit boom in reverse.

kingstreet

There are threads on here talking about borrowers being invited to leave BoI and being offered a cashback and a waived early repayment penalty. There was one such thread yesterday, possibly still on page two.

I would ring them and ask them why some borrowers are being permitted to go and given incentives to do so when you are being discriminated against. You may be guilty of warning them when you went on the market, so you miss out so they can get a few extra grand from you.

Conrad

You will know from watching the news that lenders, especially Irish brands, have very limited lending capacity so it's clearly no surprise at all.

dunstonh

Can they do all this or can I pay what I owe and make them waive the penalty????

Yes they can.

The option to port and borrow more is subject to current lending criteria at the point of application. Unfortunately, in your case the lender has decided to close for new business in the interim period.

As they no longer offer mortgages, they cannot give you what you want. No amount of complaining is going to change that. They do have the option to waive if they choose to. However, it would only be if they are willing to do so. If they dont want to you cannot force them, neither can anyone else.

kingstreet

... or page three;-

https://forums.moneysavingexpert.com/discussion/3512799

Thrugelmir

I'm sure that they'll now waive the ERC. As the aim appears to be contract their asset book as quickly as possible.

angry_chap

Hope they do waive it, at least based on what you guys have said I now have some ammo to go with as I will now tell them that if they don't waive it I will stay put, might even try to squeeze them for the extra £1000 as well.

What would really help is if anyone could send me a scan of the letter they sent out (obviously removing all personal details) so I can repeat it word for word.

Thanks all for your help

angry_chap

Thrugelmir wrote: »

I'm sure that they'll now waive the ERC. As the aim appears to be contract their asset book as quickly as possible.

I have a cash buyer as well so maybe they will realise they'll get thier cash next week the expletives.

Thrugelmir

angry_chap wrote: »

I have a cash buyer as well so maybe they will realise they'll get thier cash next week the expletives.

Developments have occurred very quickly. So unlikely that the staff you've been communicating with were even aware of the impending policy change. This a top board level decision.

angry_chap

Thanks to everybody for the help/advice, big thanks to Geoff who kindly sent me a copy of the letter above which I read word to word to the guy who had point blank refused to do anything for me, then I pointed out that if they didn't waive the ERC i would stay put (as I now knew they where trying to get rid of customers) and continue with the mortgage. They then agreed to waive the ERC. Thanks all.