Forced to take chargeable bank account with mortgage application?

astrorider15

Hi, wondered if this was legal.

Recently applied for a mortgage and at meeting a form is produced, which under pressure (otherwise no mortgage), I signed. Did not get given a copy, no chance to read ts&cs, form is not populated and furthermore I don't want another account as happy where I am. On top of this they say there is a charge for the account. I view this as an additional charge to my mortgage, not stated anywhere and although they say they can waive it now for the first year I am concerned whether this is actually legal. Apart from the normal cooling off and force majeure (I think it's called) is anyone actually allowed to insist or withhold a mortgage on that basis?

Surely with all the missold ppi's and a move away from insisting by banks you take their other insurance this is dangerous ground?

I don't have many other options because of my profession (in agriculture and fisheries and there's a related tie on the property and I can't afford anything else) so going elsewhere's not an option for this deal.:(

Gromitt

I'm not a lawyer, but I'd imagine if the T&Cs of the mortgage state you require "Account X" to manage the mortgage and "Account X" is chargable, then it's legal.

What do the T&Cs say? I don't understand your "no chance to read ts&cs", if they were saying you couldn't have time to read them then they are breaking the law there. At times I'm given a paper to sign, but I just say "I'm sure you understand I need to read and understand this before signing it" to which they usually reply "No problem".

Which bank/bs is this with?

innovate

Gromitt wrote: »

I'm not a lawyer, but I'd imagine if the T&Cs of the mortgage state you require "Account X" to manage the mortgage and "Account X" is chargable, then it's legal.

What do your mortgage T&Cs actually say? Is there a clause that commits you to the current account, and if so, for how long? Seems odd to have such a clause, unless, may be, if it is an offset mortgage. But offset mortgages don't usually come with an extra charge.

If there's no such clause in your mortgage, just write to them to say you wish to close your current account with immediate effect, and request they confirm the closure by writing by return.

If there is, however, a clause that says you need a current account with them, you are legally bound to it for as long as you have the mortgage with them

Which bank?

astrorider15

HI,
thanks both, I'm reading thru the Ts &Cs of the bank account now, 12 pages of small print (hence there was 'no time' at the meeting). The application form, which I still have and haven't signed yet does not contain any clauses about having an account with them, as far as I can see. I can't believe I was forced to sign something without seeing the full extent to what I was signing!!! It't the kind of behaviour you hear old dears signing with rogue cowboy builders! Not banks!

It's not an offset mortgage either (I wish!) as I had one of those before and was happy with it.

I agree Grommitt, this is the action I'd always normally take but wasn't prepared for it. I would assume that as with online or home visits where you sign that distance selling rules would apply to protect the consumer anyway. But at the end of the day I want the mortgage but don't see how they can get away with forcing you later to accept additional hidden charges without expressly informing you of it.

Sounds like good advice though, I think, to say no I don't want it and to close it afterwards, as long as they get their money regularly and promptly.

chambta

RBS/Natwest have certain preferential products that are available if you have this account, or the the other.

You can have a mortgage without though dependent on circumstances it could make financial sense to have one to benefit.

In these cases as long as the account is held when the application is underwritten there's no way of the mortgage conditions being changed post-offer.

opinions4u

I'd hazard a guess that you've been had.

They can insist on a current account.

They can insist on a fee charging current account. But if they do the fee becomes part of the APR of the mortgage. Not to mention suitability.

Call them and ask the question as to what you are required to have to get the mortgage product. Once you have a straight answer commence your complant.

agrinnall

OP, you've been asked to tell us what bank it is, if you do that and also tell us what mortgage product you have applied for and which account you have been 'forced' to open then we will have the facts from which sensible advice can be given. As it is, only generic advice can be offered, which may not be the best solution to your issue.