Barclay's/Woolwich: Various 'Goalpost moving' FOS Issues: Anyone had the same?

OverlandLandy

Hi All
I have a few issues with Barclay's/Woolwich Offset Mortgage that is now with the FOS.
I have already had another MSE member contact me.
The issues are (without going into big detail) that they moved the goalposts on several things causing me expense and hassle.


1. Originally I was advised that I could overpay (Not just offset) and draw back as required. - they later denied this as i had over paid by £50K+ and wanted to use my money for a deposit on a new house.

2. Originally advised that the Mortgage was fully portable (inc the reserve). However I had to pay a FULL redemption fee AND NEW mortgage fee - but they only carried over a few £k (at 0.35% above BBR)

3. I was advised that I could convert my mortgage into a BTL (At the same rate) for a £100 fee, Revaluation fee and a £50 tenant vetting fee. I went for this option and was also refused as the 'rules had changed'!

4. I was told I could borrow a further £100k (at the same rate) for a £100 fee + Survey fee. Again this rule was changed.

I choose this mortgage due to its flexibility - as was sold to me. However all the benefits/rules have changed and according to Barclay's they have no legal or moral obligation to advise me of any changes.

Basically these changes have left me paying around £4k in unplanned fees and additional mortgage payments of around £5k/year.

The FOS is trying to help but a lot of the information I have was verbal and was written in an ambiguous way.

I'm happy to pass on my FOS ref number to anyone if it helps them. If you would do the same for me?

I do believe that there is systematic mis-selling going on here, however Barclay's are stonewalling.

Any assistance would be appreciated.

It may also just be worth checking any (non-communicated) changes with Barclay's/Woolwich so you don't get caught out in future.

Thanks All

getmore4less

One thing ia can deal with

Overpayments, increase the overdraft on the reserve, so can be withdrawn later at the same rate as the mortgage by increasing reserve borrowings.

If there are known plans to draw down it was always better to just offset rather than overpay and rely on the reserve.

I think some people had their reserves modified(reduced), mine never was.

Not sure on the portability of the reserve, I don't recall the detail of portability in the T&C's, I suspect they don't say much, could have another look.

very suprised there was an extra borrowing facility I understood that would normaly have been the reserve.

OverlandLandy

Thanks
My 'Mistake' was believing the verbal and written info that I could 'Overpay' and draw back at any time. This was fine until I wanted to get my £52k back as a deposit for my new house..and then port over the full balance!

The additional borrowing was because I had not taken a full mortgage and my house had gone up by around £60k since I bought and did work on it.

Again - once they knew why I wanted to to do this this facility was withdrawn (apparently months ago...but Barclay's say that they have no legal or morale obligation to tell you about ANY changes to your mortgage beyond interest rate changes!!!!)

I'm sure I'm not the only one that has been suckered by Barclay's?

Thrugelmir

OverlandLandy wrote: »

1. Originally I was advised that I could overpay (Not just offset) and draw back as required. - they later denied this as i had over paid by £50K+ and wanted to use my money for a deposit on a new house.

2. Originally advised that the Mortgage was fully portable (inc the reserve). However I had to pay a FULL redemption fee AND NEW mortgage fee - but they only carried over a few £k (at 0.35% above BBR)

3. I was advised that I could convert my mortgage into a BTL (At the same rate) for a £100 fee, Revaluation fee and a £50 tenant vetting fee. I went for this option and was also refused as the 'rules had changed'!

4. I was told I could borrow a further £100k (at the same rate) for a £100 fee + Survey fee. Again this rule was changed.

1. Your mortgage contract would allow the lender to amend this condition. Certainly would never be guaranteed. As your personal circumstances might have changed since applying for the mortgage.

2. Portability is subject to. As a new mortgage requires a new application and is therefore subject to current lending criteria and lenders policy at the time.

3. No. Mortgages cannot be converted. As with portability. Would require a new contract. A BTL mortgage contract is different to that on a residential mortgage. One being unregulated and the other regulated.

4. See all of the above. No lender could give such an undertaking. There's no right to be able to borrow. the lender has the ultimate say.

OverlandLandy

Thrugelmir wrote: »

1. Your mortgage contract would allow the lender to amend this condition. Certainly would never be guaranteed. As your personal circumstances might have changed since applying for the mortgage.

2. Portability is subject to. As a new mortgage requires a new application and is therefore subject to current lending criteria and lenders policy at the time.

3. No. Mortgages cannot be converted. As with portability. Would require a new contract. A BTL mortgage contract is different to that on a residential mortgage. One being unregulated and the other regulated.

4. See all of the above. No lender could give such an undertaking. There's no right to be able to borrow. the lender has the ultimate say.

Thanks - You are right. I asked all the questions and even with the answers that I was given, verbally and in writing, the responses mean zip! Even the FOS say that the lender is free to change T&C's - and they don't need to tell you! I cant wait until I'm Mortgage free again. Banks can do what the simple man in the street cant do - at best 'bend the truth' or at worst - tell you what you need to hear to seal the deal.
A sad state of affairs!

I guess we all need to remember that banks 'make/produce' nothing. They just take a cut of every financial transaction that they make (good or bad). They always win while someone, somewhere is loosing (just by varying degrees!).

I'm still trying to fight the outcome - based on the original mortgage agreement and some of the internal comments plus the fact that they did not follow their own complaints procedure.

My question is - am I alone?

OverlandLandy

Update

I have had a few conversations with the FOS person who has been appointed to my case.

the top 3 things to come out are:

1. My case is one of the most complex that she has dealt with

2. Mine is not the only such case

3. Only around 20% of complaints are succesful (due to the fact that the banks can effectivly make up its own rules as it goes along and unless it effects repayments they do not need to tell you!)

opinions4u

3 is incorrect. Around 50% of complaints dealt with by the FOS are upheld.

OverlandLandy

opinions4u wrote: »

3 is incorrect. Around 50% of complaints dealt with by the FOS are upheld.

I assumed she was referring to offset or mortgage complaints?

Thrugelmir

In Q3 (Oct-Dec 2011) the FOS dealt with 2,483 mortgage complaints. Of these 24% were in favour of the consumer. So around 600 cases.

The statistics show both a decline in the total number of complaints and reduction of cases in favour of the consumer.

opinions4u

OverlandLandy wrote: »

I assumed she was referring to offset or mortgage complaints?

You're right. Sorry.