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Was I given the correct mortgage deal?
JSW_2
Posts: 2 Newbie
Hi, just wondering if my bank acted correctly with regards to the following:
My mortgage is split into 3 accounts. Currently I have a 0.75% above base rate tracker for 2 accounts of my mortgage and the banks SVR of 4.24% for account 3. Account 1 was originally a 5 year fix rate of 3.99% (I think) reverting to the tracker rate. When I remortgaged (account 2) some time ago I was given the same terms as account 1.
When I moved house 5 years ago I was allowed to port this rate over (was 3 years into the accounts 1&2 fixed rate) but the additional borrowing (account 3) was fixed at new rate of 4.74% and reverted to the bank SVR rate of 4.24% to coincide with the original accounts 1&2 fixed rate coming to an end.
My query is should the bank have given me the same terms for account 3 as per accounts 1&2 or did they act correctly in lending money at the new rate?
At the time I did query why I could not have the same rates but due to the stresses of moving etc I accepted whatever reason they gave at the time. I cannot remember what they stated but agreed the new fixed rate deal as the BoE base rate at the time was around 5% (before the credit crunch). Obviously if they have acted incorrectly then I have been paying interest at 4.24% instead of 0.75% above base for the past 3 years which will amount to a considerable sum. I would assume (hope) they did act accordingly, it's just something that's been bugging me for a while
I appreciate your responses in advance,
Thanks
My mortgage is split into 3 accounts. Currently I have a 0.75% above base rate tracker for 2 accounts of my mortgage and the banks SVR of 4.24% for account 3. Account 1 was originally a 5 year fix rate of 3.99% (I think) reverting to the tracker rate. When I remortgaged (account 2) some time ago I was given the same terms as account 1.
When I moved house 5 years ago I was allowed to port this rate over (was 3 years into the accounts 1&2 fixed rate) but the additional borrowing (account 3) was fixed at new rate of 4.74% and reverted to the bank SVR rate of 4.24% to coincide with the original accounts 1&2 fixed rate coming to an end.
My query is should the bank have given me the same terms for account 3 as per accounts 1&2 or did they act correctly in lending money at the new rate?
At the time I did query why I could not have the same rates but due to the stresses of moving etc I accepted whatever reason they gave at the time. I cannot remember what they stated but agreed the new fixed rate deal as the BoE base rate at the time was around 5% (before the credit crunch). Obviously if they have acted incorrectly then I have been paying interest at 4.24% instead of 0.75% above base for the past 3 years which will amount to a considerable sum. I would assume (hope) they did act accordingly, it's just something that's been bugging me for a while
I appreciate your responses in advance,
Thanks
0
Comments
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If that deal was no longer available then they cant offer it you.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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It doesn't matter what reason they gave you - they didn't have to give any reason at all. They offered you a certain rate, you accepted it - case closed.At the time I did query why I could not have the same rates but due to the stresses of moving etc I accepted whatever reason they gave at the timepoppy100 -
ACG is right. When the lenders realised that reversionary rates tracking the base rate were a bad idea they stopped offering them and started offering SVR only. Hence your original products were on the original offering and your latest one isn't.The J is a Financial Advisor-This site doesn't check anyone's status and as such any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Always seek professional advice.0
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ok all fair enough then, thanks for the replies.0
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