Standard Life to Barclays - breaking contract?

Thrugelmir

DVardysShadow wrote: »

But only given exceptional circumstances.

Those are pretty obvious. The cost of funding the mortgage book has risen and the terms offered are no longer commercially viable.

3 years of .5% base rates are exceptional and unforeseen.

Darkstar

I think you may be confusing this thread with another. There is no proposed changed to the interest rate charged it is the removal of the cash reserve and payment holidays that is in contention. The cash reserve effectively meant the mortgage could be run as a Offset mortgage which is how I am using it.

DVardysShadow

Thrugelmir wrote: »

Those are pretty obvious. The cost of funding the mortgage book has risen and the terms offered are no longer commercially viable.

3 years of .5% base rates are exceptional and unforeseen.

This is not the least related to assignment of contract. There is no difference in between the original lender or a lender who takes on the contract by assignment as to whether they can do this or not.

bravoj24

We are in the same situation - surely they can't just change the terms of your mortgage. We have written and complained and had a response stating Section 20 of a 2010 agreement is the reason they can change it. We have never seen this 2010 agreement (only one dated 2001). We have written to them again and are going to contact the Ombudsman.

Thrugelmir

bravoj24 wrote: »

We have written and complained and had a response stating Section 20 of a 2010 agreement is the reason they can change it.

Have you read all the paperwork that is sent with your annual mortgage statement?

Law does not remain static. So their will be revisions issued to comply with current legislation.

Thrugelmir

Darkstar wrote: »

I think you may be confusing this thread with another. There is no proposed changed to the interest rate charged it is the removal of the cash reserve and payment holidays that is in contention. The cash reserve effectively meant the mortgage could be run as a Offset mortgage which is how I am using it.

Change of terms and conditions can take many forms. The principle that a lender can change them is the issue, not necessarily what it is they are.

lornaprice

We are in the same position and have started the complaints procedure. Ours is a flexible mortgage allowing under/over payments and drawdown. Currently there is very little outstanding on our mortgage, which means we have a large drawdown facilty.

We have had 2 phone calls from Standard Life who say that they will waive the early redemption payment if we pay the mortgage off by the final transfer date in July. Other than that they are adamant that Barclays can do what they like.

We intend to take the matter to the ombudsman but are unsure whether to let the transfer go through or pay the mortgage off (taking advantage of not having to pay the £150 fee).

We feel really annoyed by it all.

PS There is a clause in our original contract which states something suggesting that any company taking over the mortgage would have to honour the original terms and conditions.

Thrugelmir

lornaprice wrote: »

We intend to take the matter to the ombudsman

On what grounds?

The drawdown facility in its own right is not a guaranteed facility.

lornaprice

Thrugelmir wrote: »

On what grounds?

The drawdown facility in its own right is not a guaranteed facility.

Because I don't pretend to know the ins and outs of contract law and because I don't see that we have anything to lose by taking the matter to the ombudsman.

NSN1968

Result...
Just received a letter from Standard Life stating that because they are entitled to remove the features from the Mortgage they are do not uphold my complaint. However, as a goodwill gesture, they will waive the early repayment charges and the mortgage redeption fee (£4083) should I wish to remortgage elsewhere.

Now I can get out of my 10 year fixed 5.35% and jump to a much better rate elswhere.

Thanks for all your advice...
Neil