Egg EMS Tracker Mortgage and transfer to YBS Yorkshire Building Society

sparkii

re new set of T&C's issued by YBS (effective from the 24th September 2012) for existing Egg EMS Offset mortgage / tracker accounts.
Section 15.3 Basically states that they can close anyone's Offset Savings Account and they don't have or give a reason!
Section 15.4 Then goes on to say that you can't have an Egg EMS Tracker mortgage without the offset account! Either the mortgage has to be repaid or YBS will transfer your mortgage account to the most similar account they currently offer (bet that'll be a good deal - NOT!)

Looks like the end of the road is in sight, it was a damn good deal while it lasted. I've been paying 1.25% for some time now. Seems grossly unfair that they can end my mortgage just like that. After all back in the 1980's when mortgage interest rates soared to 14 - 15%, I didn't have an opt out then, so why should they now?

dimbo61

Speak to the YBS or whoever sent you this letter and ask for confirmation of what they mean by this letter.
If you need to open an offset account then do so with £10 and as long as you continue to make your mortgage payment each and every month I cant see how they can cancel your mortgage ( it is repayment ? )

sparkii

Interest only, I have made my own provisions for paying off the mortgage as originally advised but they won't come to fruition for years yet. Having spoken to the fsa it seems they can change terms and conditions if they give notice. I think the penny has dropped and banks and building societies have now realised that we face a Japanese style economy with years and years ol very low interest rates. I have heard that they now have legal experts looking for loopholes in tracker agreements and one building society has already managed a wriggle out.

Thrugelmir

sparkii wrote: »

I have heard that they now have legal experts looking for loopholes in tracker agreements and one building society has already managed a wriggle out.

The terms and conditions of mortgage contracts have been much the same for many years. Particularly the conditions which relate to the sale/transfer of a mortgage to another lender.

The trouble is few people either bother reading the small print or ask their solicitor to explain the terms when the mortgage offer is made.

With regards to Building Societies they are regulated under the Building Societies Act. So the Directors are duty bound to maintain the solvency and profitability. Unlike banks they have no mechanism to raise capital to increase reserves. So therefore may have to make commercial decisions in fairness to all members of the society.