Missold Halifax Mortgage?

kempsey

Hi,

I have been a Halifax customer for 15 years and had always had a mortgage that I could port across to a new address.

In 2009 we were considering a downsize, My fixed rate deal was due to expire in July that year.

In June, we spoke to Halifax to consider our opitons and was told that when we come out of our fixed rate deal, we could get a great deal as an existing customer and was offered to continue a fixed rate at 4.50%.

We decided to sell and downsize instead.

I contacted the Halifax over the phone in the same month to apply for a mortgage at a new property so wanted to port our existing deal across.

I was told that we can port this but not the same deal!! They wouldn't allow me to have the benefit of the SVR on our new property. I was then advised that my application would be treated as a 'New' customer!! and the fixed rate deals would be 6.44%!!!

When I challenged this on the grounds that I was an existing customer and was recently offered a 4.5% deal as an existing customer, the Mortgage advisor couldn't give me a straightforward answer and said that was all that was available!

With our credit rating not being so great, we had no choice but to stick with their recommendation.

I since have discovered by a trained mortgage advisor that this would have been missold.

I have since wrote to Halifax and they advise me that the option to port a SVR was withdrawn in 2008. They haven't responded to the full elements of my complaint which is why I have escalated this to the Financial service ombudsman.

The_J

Sorry, they haven't done anything wrong. Lenders are free to set their rates at whatever level they want.

Suggest the "trained mortgage advisor" looks for another career.

kempsey

The_J wrote: »

Sorry, they haven't done anything wrong. Lenders are free to set their rates at whatever level they want.

Suggest the "trained mortgage advisor" looks for another career.

So what gives these lenders the right to treat me as a new customer to shift me onto an expensive deal???

R_P_W

As I understand it, lenders are not obliged to port an existing deal to a new property.

kempsey

R_P_W wrote: »

As I understand it, lenders are not obliged to port an existing deal to a new property.

But this was what I signed for and stated on my mortgage T&C's??

ACG

You had the choice to stick where you were or move. They gave you an option, you went for it.

kempsey

ACG wrote: »

You had the choice to stick where you were or move. They gave you an option, you went for it.

What option?

They have penalised me when I decided to move without me breaking the contract.

An incompetent MA said I can only move onto a new deal (New customer deals) should I decide to move.

My mortgage T&C's stated that it was portable.

Obviously porting on SVR was in the benefit to me the client than the organisation.

Maybe I should have signed up for th 4.5% and then decided to move, in which case I would have still ported this across but on a good deal.

Afterall, shouldn't they be assessing the best needs for the customer?

kingstreet

kempsey wrote: »

Hi,

I have been a Halifax customer for 15 years and had always had a mortgage that I could port across to a new address.

No. You had a rate you could port across to a new Halifax mortgage if you satisfied the lender's criteria and affordability at that time. Portability does not guarantee you another mortgage.

In 2009 we were considering a downsize, My fixed rate deal was due to expire in July that year.

In June, we spoke to Halifax to consider our opitons and was told that when we come out of our fixed rate deal, we could get a great deal as an existing customer and was offered to continue a fixed rate at 4.50%

This is a product transfer and the rate reflected your loan to value at that time. If, for example, your loan to value was 75% you would get a better product transfer rate than you would with a 90% loan to value.

We decided to sell and downsize instead.

I contacted the Halifax over the phone in the same month to apply for a mortgage at a new property so wanted to port our existing deal across.

So you didn't accept the product transfer and instead rolled onto standard rate?

I was told that we can port this but not the same deal!! They wouldn't allow me to have the benefit of the SVR on our new property. I was then advised that my application would be treated as a 'New' customer!! and the fixed rate deals would be 6.44%!!!

So, without being able to port SVR, your loan to value then gave you an option of only 6.44%? What was the loan to value for the new mortgage/property?

When I challenged this on the grounds that I was an existing customer and was recently offered a 4.5% deal as an existing customer, the Mortgage advisor couldn't give me a straightforward answer and said that was all that was available!

You were offered a product transfer at that rate and at the existing loan to value. What was your old loan to value and what was the new one? When you moved, you became an "existing customer moving home" and came into a different product group.

With our credit rating not being so great, we had no choice but to stick with their recommendation.

So it is possible Halifax may have turned you down altogether, as having a mortgage with a lender does not guarantee you another one if your circumstances change.

I since have discovered by a trained mortgage advisor that this would have been missold.

I suspect you were provided only information on the option you chose to accept. The only way the product could be mis-sold is if you went through an advice process and the adviser recommended the product based on an analysis of your circumstances. Did you go the advised route? Do you have a suitability letter explaining the product was recommended to you and the reasons why?

I have since wrote to Halifax and they advise me that the option to port a SVR was withdrawn in 2008. They haven't responded to the full elements of my complaint which is why I have escalated this to the Financial service ombudsman.

I look forward to your FOS response, with interest. Please post back and let us know the outcome.

holly_hobby

You port a mortgage rate not the mortgage borrowings themselves.

Your borrowings on your new property are treated as a new application, with the appropriate status checks on the total amount of borrowing reqd.

If the lender has permitted you to "port" your existing product, it is applied to a sum equal to the amount of borrowings it related to (at redemption) on what will be your previous home, and will run over the remaining period under the contract.

I can confirm, that you have not been mis-sold, you can not port SVR, Halifax advised they no longer permit new applications on SVR, so you had to choose a product for their range at the time, if YOU WISHED to remain with them. Which you did of your own volition.

The mortgage adviser you have spoken to sounds inexperienced and instead of helping has totally mis-lead you. I don't consider there to be any merit to the complaint submitted to FOS, whom I also don't believe will uphold your claim.

Sorry the above probably isn't what you wanted to hear ...

Hope this helps

Holly

Edit - my post has crossed with Kings. but my points remain...

ACG

Sorry miss read - i thought you were looking to move but didnt actually move.

Halifax dont offer an advised service as far as im aware. They offer you what options are available and you decide.
If you have written a letter of complain to halifax they will looki into it. If you had that option avilable to you then they will put it right, if not then they will leave it as it is.

If your not happy with their decision you have the financial ombudsman to run it by.

Senior_Paper_Monitor

I think you'll find it was "portable subject to" - a couple of quick checks on current Halifax Offers shows the wording "will usually be able to".

All porting is subject to meeting the criteria that the lender applies to lending at the time.

You are wasting your time.