HELP! Advice needed for my ongoing complaint against cheltenham and gloucester

jorvik

Hello every, and thanks for reading. I'm hoping some of you good people can give me some advice on the following problem.

In Early 2010 i took out an interest only mortgage on a 2nd property with Chetenham and Gloucester and the details are as follows.

1. I received my offer which stated that i would have:

1st payment x 1 = £250

Followed by

18 months x £173

Then

401 months x £103 (as interest rates stand)


2. The offer stated the mortgage would start 01/06/2010

So, i signed the document and got things moving. Luckily, everything went through quickly and then i received a letter off C&G saying that my mortgage had started earlier, and that the first payment was now set for the 01/04/2010, 3 months earlier than the offer stated.

so, i rang, and they said the term of my mortgage offer still were valid.

Now fast forward 18 months, (the 19th month was November just gone) and i expected my payments to drop as per my contract.

Did that happen?

Nope, 3 more months went by at the higher rate, so i rung them to ask why, and in all honesty, there response was essentially, "Thats just the way it is"

This mortgage was sold to me as an 18month term, i have now paid 21months at the fixed, higher, rate.

My question to you kind folk is this, are they right? Do i have a case to fight this? Can it be fair that my contract says one thing and that the payments do not match the terms?

Any help would be gratefully received.

thanks

wayne

Senior_Paper_Monitor

was the offer worded 'xxxx rate until xx/xx/xxx' or 'xxx rate for xx months' ?

Usually second box under section 4. Description of this Mortgage

jorvik

you are right, paragraph 4 reads,

your 1st monthly payment will be £212.19

18 monthly payments at a variable rate, currently 4.20% - £173.16

followed by

401 monthly payments at a variable rate, currently 2.50% - £103.09

The offer assumes that the mortgage will start 01/06/2010

(This all all pretty much word for word)

again, just to remind you, the mortage actually started 23/03/2010, with the 1st payment on the 01/04/2010

thanks again

kingstreet

Section 6 of the key facts illustration for a C&G mortgage says;-

"This illustration assumes that the mortgage will start on xxxxx"

so the payments listed in that section may be subject to change if the commencement date was different.

For example, if the end date was a fixed date, rather than a number of months, or years, an earlier start date would mean more payments at that level than illustrated.

In addition, the initial payment would be subject to change, dependent on the point in the month the mortgage completed.

The relevant question, as SPM has raised it, is this an eighteen month fixed rate, or a fixed rate until a certain point in time ie 31/01/2012?

jorvik

I'm afraid section 6 makes no mention of an "end date" as it were. Maybe it's me being simple minded on this, and i apologise if it is, But surely if i signed for a mortgage, and agreed to it terms, and that mortgage started 3 months earlier, surely the terms would be still valid, with only the start date being the difference?

kingstreet

The end date doesn't appear in section 6.

If you look in section 4, as SPM said, that's where you'll see something like this;-

2 Year 5.09% Fixed until 31/12/2008

The number of payments in section 6 will then be the difference between the assumed commencement date and the end date in section 4.

jorvik

I have the document here, and i'm afraid there is no such line, the only reference to a date is the assumption that the mortgage would start 01/06/2010.

kingstreet

Can you write down for us, verbatim, what is written in section 4 headed "4. Description of this mortgage", particularly to the right of the boxes shown as "Mortgage product" and/or "Interest rate type and interest."

Thanks.

jorvik

Ok, as requested, here goes.

4. What you will pay each month

this offer is based on a loan amount of £49,475 and includeds the fees that are shown in section 6 as being added to your mortgage

this offer assumes that the mortgage will start on 01/06/10

your 1st monthly payment wil be £343.94

followed by
18 monthly payments at a variable rate, currently 4.20% £173.16

followed by
401 monthly payments at a variable rate, currently 2.50% £103.09

Your first monthly payment, shown above, includes initial interest for the month in which your mortgage starts, plus a full payment for next month. Your first payment date will usually be the month after your mortgage starts, so depending on the number of days between the start and the payment date, the initial interest amount could be anything from a few days interest to a full month. We have shown here what it is likely to be.

Thats it, apart from a few line underneath saying i should check the house value from time to time, but nothing relating to the figure or times.

Hope it helps and i hope you can see where i'm coming from

kingstreet

Ok. Your section 4 and my section 4 are different. Looking at the KFIs I have here, you're quoting from my section 6.

Looking above the bit you've quoted, is there another section which looks like this;-

4. Description of this mortgage

Mortgage lender Cheltenham & Gloucester - Mortgage product 2 Year 5.09% Fixed until 31/12/2008 More Than £50k Remortgage Up to 90% LTV

Interest rate type and interest - A fixed rate of 5.09% until 31/12/2008
Cheltenham & Gloucester's Variable rate, currently 6.75% thereafter

Restrictions on this mortgage - The mortgage is available up to 90% of the property valuation, or the purchase price (if appropriate), whichever is the lower.

except it will be tabulated, like the others?

Senior_Paper_Monitor

I woke up thinking about this - how sad is that !

Almost certainly a fixed date rather than period - the likelihood of 19th month period product is minimal.

Apparently not totally standard wording but clearly states an assumed start date - no complaint there, save your stamps !