Standard Life to Barclays - breaking contract?

Thrugelmir

DVardysShadow wrote: »

Assignment itself is not sufficient to invalidate contract terms even if these are those which benefit the borrower. If the original lender was bound to provide a benefit, then so is the lender who takes the contract under assignment.

Mortgages are not reassigned, they are for intents and purposes bought and sold.

The new lender may not the have administration facility or in fact computer system to offer the product features previously offered.

When BOI sold its mortgage book to TMW. TMW almost immediately gave notice of an increase in mortgage rate. Notice being adequate time for borrowers to remortgage elsewhere.

Barclays will have taken counsels advice in proposing and effecting the change.

opinions4u

Thrugelmir wrote: »

The new lender may not the have administration facility or in fact computer system to offer the product features previously offered.

It all goes back to what is contractual and what is concessional. If it's contractual the lender can only breach if it's in the customer's favour.

If it's concessional, reasonable notice of change and fair implementation of change comes in to play.

When BOI sold its mortgage book to TMW. TMW almost immediately gave notice of an increase in mortgage rate. Notice being adequate time for borrowers to remortgage elsewhere.

BOI is an interesting one. I recently asked the question "why now?" and another poster said it's because the base rate guarantee for SVR expires on 31st March 2012. Which explains it all rather well.

If I recall correctly, the Nationwide changes for former BOI customers come in to play on 1st April - with a 2 month+ notice period having already been provided.

Barclays will have taken counsels advice in proposing and effecting the change.

Sure will have.

Thrugelmir

opinions4u wrote: »

It all goes back to what is contractual and what is concessional. If it's contractual the lender can only breach if it's in the customer's favour.

By agreeing to the right to allow the lender to transfer the mortgage to another party , the borrower loses his rights.

The buying and selling mortgage books is nothing new.

In the current financial climate the number of active lenders may well decline further.

opinions4u

Thrugelmir wrote: »

By agreeing to the right to allow the lender to transfer the mortgage to another party , the borrower loses his rights.

Unusual, but on this one I think you're wrong.

The buyer takes on the mortgage book together with the contractual liabilities.

Thrugelmir

opinions4u wrote: »

Unusual, but on this one I think you're wrong.

The buyer takes on the mortgage book together with the contractual liabilities.

All mortgage contracts have an exceptional circumstances clause. Which the buyer can invoke to effect any change they wish.

In my experience few people ever fully read and understand the implications of what they are signing, and that includes business transactions as well. Where there is no protection at all.

Darkstar

Thrugelmir wrote: »

All mortgage contracts have an exceptional circumstances clause. Which the buyer can invoke to effect any change they wish.

No arguments there but at the same time if the change is considered to be material then the contract change needs to be agreed by both parties.

In this case we are stating the change is material and we do not aggre with it. Therefore either don't implement the change or allow us to exit without paying any ERC as the contract has effectly been terminated. This is in effect the basis of my complaint.

You can write anything you like in a contract but if it conflicts with either UK or EU legislation it has no legal standing. One year limited warranty being a prime example.

NSN1968

Quick update...
Received my "we have received your complaint" letter from Standard Life. Letter contains the usual "what we'll do now" schpiel.
Will update you all once next letter received.
Neil

Thrugelmir

Darkstar wrote: »

In this case we are stating the change is material and we do not aggre with it.

Material in what context?

There is an argument for being unfair. If the proposed new rate is out of line with other market rates.

For the lender its easy to defend in court if its not. As no judge would make a ruling forcing lenders to lend at a loss. The effect of wich would be to contradict both the Building Society and Banking Acts. The Directors of which are duty bound to run their organisations under this legislation.

Unfortunately not agreeing with, is not a right to complain in this instance. Lots of things I disagree with but I'm forced to operate within rules and guidelines.

DVardysShadow

Thrugelmir wrote: »

Mortgages are not reassigned, they are for intents and purposes bought and sold.

The new lender may not the have administration facility or in fact computer system to offer the product features previously offered.

When BOI sold its mortgage book to TMW. TMW almost immediately gave notice of an increase in mortgage rate. Notice being adequate time for borrowers to remortgage elsewhere.

Barclays will have taken counsels advice in proposing and effecting the change.

For this discussion, there is no material difference between 'buying and selling' on the one hand and assignment on the other. Buying and selling of mortgages is what happens between businesses who lend. Assignment of contract is what the person borrowing on the mortgage sees happen to his mortgage contract,.because he is not directly involved in the buying and selling of the other end of his mortgage contract.

As for the Barclays - TMW deal, I can only see that the rise in interest rates was permissible under the original mortgage terms - or that borrowers who wished to dissent were bought off.

Assignment of a contract cannot change contract terms in any way whatsoever which the original lender could not have done.. The most it can do is make the non contractual aspects of the operation of the contract less favourable

DVardysShadow

Thrugelmir wrote: »

All mortgage contracts have an exceptional circumstances clause. Which the buyer can invoke to effect any change they wish.

But only given exceptional circumstances. And only in a way that addresses the exceptional circumstances. And only in a way which the seller of the contract could have invoked the clause.