Lloyds TSB Mortgage - unfair change to SVR

conflictivo

I was one of those who was caught by the unfair SVR - where they said that the "mortgage will never be more than 2% above base rate". After a fight, fortunately I managed to reclaim the extra interest they charged me when they decided to make it 3% above base rate. In the meantime I was so hacked off with them that I moved my mortgage to First Direct, which charged me 2.49% above base rate in an offset mortgage for the lifetime of the mortgage, 0.49% above what would currently be the rate at Lloyds TSB if I were at base + 2%.
I was just wondering if there is any comeback on this? i.e. I wouldn't have been paying as much as this if Lloyds TSB had honoured its original offer of 2% above base rate, I would be paying about £89 less per month. Surely they should have advised me what my options were?

Thanks to anyone who could provide some advice

Thrugelmir

conflictivo wrote: »

Surely they should have advised me what my options were?

You moved your mortgage to FD. Lloyds were in no position to advise you regarding this. Was totally your personal decision.

Simon_gloster

I was under the impression LTSB was capped at 2%+ base if the mortgage advances pre june 2010. If so they could not increase it to 3% above base, unlike halifax.

Therefore I dont understand this post, and as T says, one thing is you'll live to regret leaving Lloyds SVR.

Was it a LTSB branded mortgage or one of the others in their group?

opinions4u

Are you mixing up Lloyds TSB and Halifax?

If so, you've been compensated and there is no further comeback.

They had the right in their terms and conditions to vary the SVR link to base rate. It was the way they highlighted this that caused the problem.

Once compensated you have no future claim against them. Expecting them to pay a chunk of your mortgage interest with another lender is, quite frankly, ridiculous.

Surely they should have advised me what my options were?

Did you ask them for advice?

Who advised you on the First Direct mortgage?

Simon_gloster

O4U, that was my thinking also.

C&G and LTSB SVR's for those who are eligable cannot have the 2%+ base taken off them unless the borrower chooses to.

HBoS brand probably.....can you confirm the lenser OP?

conflictivo

Yes, thanks for the quick replies and apologies for my slow response. It is shutting the gate after the horse had bolted. I was mixing up Lloyds TSB up with Halifax. The wording did say "We have set a limit on the Halifax Standard Variable Rate so that it will not be more than 2% above Bank of England base rate. We can change the 2% limit ...." so they deserved to be hauled over the coals for it. My financial advisor, a reputable company, told me that I was not eligible for compensation, so even "experts" can be wrong. My point is that I missed the long-term implications when the compensation was offered and I was wondering what the judgement obliged Halifax to do and what Halifax actually did.
Anyone know where the judgement is lodged?

opinions4u

"We can change the 2% limit ...." so they deserved to be hauled over the coals for it

Your bolded quote rather contradicts your subsequent statement.

Anyone know where the judgement is lodged?

There was no judgement.

The FSA and LBG (Halifax) came to a mutual agreement. You got your compensation and the matter was closed.

The terms and conditions of your mortgage always gave them the right to vary the link to BofE base rate with appropriate notice. The FSA argument was that it should also have been explicit in the key facts document. By compensating you they have now clearly explained this.

Had it gone to court it's possible that a judge may have ruled in the lender's favour by confirming that the clause was in the terms and conditions.

So you've got something. Where, possibly, a court would have awarded borrowers nothing. You know they can vary the link to base rate. You are free to move elsewhere or stay with Halifax.

So as I see it you should end it there.

If you wish to pursue it further you can complain again to Halifax, escalate to the FOS or take them to court.

It's not been tested in the courts as far as I'm aware. While I think you'd lose that's not a certainty. After all, Halifax did stump up £600m to avoid the legal process.

conflictivo

opinions4u - thanks for the reply. I wasn't aware that it was an agreement out of court, I thought there was a finding against them. I'll get on with my life and learn the lesson.

At least I got something back - and I do believe that I would win a court case ... but we may never know.