Morgage Company Bullying me into converting from low interest tracker.

Dave_Ham

Tell them you want to stay as you are and happy to take advice from the Ombudsman on the best way forward..

I honestly do not think they can enforce this, although I have no substance to support this view...

Be interested how you get on, would pick up the phone to the Ombudsman tomorrow and ask for their view...

GMS

Ask them what the consequence of staying on your current arrangement is. Make them aware of your current plan which will clear the debt as per the contract you entered in to.

If they try to force your hand then a complaint may well be in order,

Poppy9

I had an endowment only mortgage for 25 years (paid off last year). I moved my mortgage a number of times to different building societies to take advantage of lower interest rates. Each move was interest only and not once did they ask me how I intended to repay at the end of the period.

It may have been because the mortgage was only about 20% of house valuation.

I made lump sum payments when I had the cash from ISAs (and terms of mortgage allowed to avoid early redemption fees), when the 2 endowment policies matured.

I can't see how they can force you to change, I think the letter is just carefully worded to advise you of your options if you WANT their financial advice. Just ignore them!!!

seftonbarn

Thrugelmir wrote: »

Correspondingly the bank is losing money on your business.

So easy to understand the situation from both sides.

You are avin a laugh.

seftonbarn

Poppy9 wrote: »

I had an endowment only mortgage for 25 years (paid off last year). I moved my mortgage a number of times to different building societies to take advantage of lower interest rates. Each move was interest only and not once did they ask me how I intended to repay at the end of the period.

It may have been because the mortgage was only about 20% of house valuation.

I made lump sum payments when I had the cash from ISAs (and terms of mortgage allowed to avoid early redemption fees), when the 2 endowment policies matured.

I can't see how they can force you to change, I think the letter is just carefully worded to advise you of your options if you WANT their financial advice. Just ignore them!!!

Thanks - I am hoping that you are right.

kidmugsy

Why not just tell them that you are writing to your MP about this? I'd guess that they'd freeze everything until the MP gets in touch with them. Or sharply reverse course.

You might also try a letter to one of the financial agony aunts in the papers. "Jessica" in the Telegraph on a Saturday is pretty good, though she usually deals with account !!!!-ups rather than shake-down attempts like this.

dunstonh

It should be noted that lenders do have the right to switch to repayment basis if you fail to keep up your repayment vehicle or are unable to provide details of a suitable repayment vehicle (or intention).

So, whilst you may not be happy with what they are doing, they can do it. And it is logical for them to do it as well. At least against the amount of the shortfall. Not the whole mortgage as you do have a vehicle for a good chunk of it. That said, I suspect if you complained they would back down as you do appear to have suitable vehicles to cover the shortfall.

gnasher18us

why don't you just pay off the amouns as they mature? You'll pay £65K next year and then at least you might even feel that your house is getting nearer to being owned by you anyway?

The mortgage you're on still accrues interest (very small 0.25%), but savings wouldn't get much better rate.

At least you'll feel better paying back those *ankers!

Leon_W

They have no way in enforcing this. As others have said, just tell them you are happy with your arrangements. Whether they accept savings or pensions has got nothing to do with you, that's their problem.

You have a right to be treated fairly, and it is quite clear to any layman, that by taking the route the lender possibly proposes is clearly unfair.

I have not heard of one case where anybody has been switched to a repayment mortgage from interest only, repayment vehicle or not.

Jimbo1976

In my humble opinion they cannot force you from your lifetime tracker rate.

In relation to switching from I/O to repayment this might be worth reading

http://www.fsa.gov.uk/static/pubs/guidance/fg12_01.pdf