Standard Life to Barclays - Have they broken terms?

csa

Hi,

We've had our mortgage with SL for over 10 years. They are selling their mortgages to Barclays. We still have another fixed year before we can look at other rates...however, my husband believes they have broken their T&C's with this transfer. He asked them and they said they hadn't but he's not convinced. We could get a much better rate if we could leave. Anyone know anything about this and whether we could contest this move?

Regards

Senior_Paper_Monitor

10s of thousands of mortgages are sold between lenders every year - absolutely nothing outside the rules with this. The terms of the mortage (including tied period and rate) stay valid.

Thrugelmir

csa wrote: »

however, my husband believes they have broken their T&C's with this transfer.

Why?

Read your mortgage contract that you've signed. A lender is able to sell your mortgage on to who ever they wish.

dunstonh

We've had our mortgage with SL for over 10 years. They are selling their mortgages to Barclays.

Std Life sold their mortgage book about 3 years ago.

We still have another fixed year before we can look at other rates...however, my husband believes they have broken their T&C's with this transfer.

What T&C does your husband think they have broken?

Anyone know anything about this and whether we could contest this move?

You have no right to contest the sale of the book. It does not break any T&C. It would be interesting to know which T&C though your husband thinks they have broken. Many of us here have access to the terms and conditions. Would you like to say which one it is he is referring to?

Jimbo1976

I think the issue for the OP is not necessarily that the mortgage has been sold, afterall who cares if you get a statement from Standard Life or Barclays?

The issue is that the OP took out a Flexible Freestyle Mortgage and on purchase Barclays has stripped away all the flexibility relating to the mortgage, limiting overpayments and the ability to redraw.

There has been a recent post about this here https://forums.moneysavingexpert.com/discussion/3836195 and also an article in the times (kindly hidden behind the firewall) http://www.thetimes.co.uk/tto/money/mortgages/article3397909.ece

Barclays are relying on certain clauses in the contract which permit changes to be made in various circumstances, purchase being one of them.

Your first step is to complain to Barclays, explain why you are unhappy ie they are stripping away the features that attracted you to the mortgage in the first place. If you want to remortgage away you might suggest that they waive the early repayment charges if these are preventing you from remortgaging. If they are unwilling to help then complain to the financial ombudsman service.

dunstonh

The OP mentioned one year left of fixed rate. Not a flexible mortgage.

Jimbo1976

SL has offered flexible fixed rates in the past. http://www.moneymarketing.co.uk/news/standard-life-enters-fixed-rate-mortgage-market/92014.article

Thrugelmir

Jimbo1976 wrote: »

Your first step is to complain to Barclays, explain why you are unhappy ie they are stripping away the features that attracted you to the mortgage in the first place.

If Barclays aren't geared up to service this product. Then there's a business case they can use in defence.