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Today my Building Society pulled out of my remortgage??

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Comments

  • HelpWhereIcan
    HelpWhereIcan Posts: 1,343 Forumite
    Could the simple explanation not be that the BS checked their phone records and spotted that kiwi had indeed been told by their telephone adviser that they would be eligible for the product.

    Therefore, while they would not normally offer that deal to exisiting customers (remember the Nationwide 'Brand new customers only' Ad?), they realised that one of their staff members had given incorrect information that they had to honour.

    Therefore, they did a product transfer for kiwi_saver - giving them one of their remortgage deals.

    One very good reason to be glad calls are recorded and to insist that the call is retrieved if you are given incorrect info - has worked for me before.
    I am an IFA (and boss o' t'swings idst)
    You should note that this site doesn't check my status as an IFA, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    alant1000 wrote: »
    Marky you party pooper!

    Did kiwi get a result? = yes
    is he/she better of as a result? = yes
    does he / she deserve it? = for sheer effort yes
    is this a vistory everyone who has made the mistake can expect? = NO
    does the use of terminology bother anyone as he/she has got the result = NO

    Am i happy for Kiwi? Definitely.
    I said
    I'm glad the OP is happy
    Stop moaning!

    If people want to use incorrect terminology, they won't help themselves to be understand and they'll increase the risk of errors occurring. As probably happened here.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    jamesd wrote: »
    MarkyMarkD, kiwi_saver acted exactly according to the definition dunstonh provided: took out a new mortgage that paid off the existing one.
    No, kiwi_saver didn't redeem the first mortgage at all. The mortgage is the legal charge over the property. That legal charge didn't get changed. All that changed was the terms of the mortgage product - hence it was a product switch, not a remortgage.
    The lender's staff said on the phone that they do offer that to existing customers.
    No, they said that the particular product was available to existing borrowers as a product switch, as well as to those remortgaging.
    The lender's web site was also fully informed that kiwi_saver was an existing customer and was set up to accept the remortgage in that situation, when it could have been set up to decline if that was desired.
    No, the website application form wasn't set up to exclude customers who were unsuitably using the form, because the lender didn't imagine an existing borrower to switch would attempt to use it.
    And now the lender has confirmed this with their decision.
    No, they've given up arguing out of goodwill.
    I suppose kiwi_saver could ask for proof that the lender did secure the funds then use the newly secured funds to pay off the original loan but that's not likely to be helpful to anyone.
    Well no, because that is not what happened at all.
    Choosing to do it with a remortgage could prove costly: there might be redemption costs and penalties for the original mortgage, for example. Presumably kiwi_saver has had to pay those exit costs from the original mortgage since it was redeemed. Certainly seems fair that this should be so, given that kiwi_saver chose a remortgage rather than a product change.
    Ha, ha. I don't think kiwi_saver has paid an MEAF, or that kiwi_saver thinks they should do, because they haven't redeemed their mortgage at all, because it wasn't a remortgage.
    Insisting that a lender is only allowed to offer product changes, not remortgages as well, to existing customers is unhelpful. You might expect that but it's not necessary.
    Eh? Lenders may, and can, and do, offer the same products to those borrowers switching as to those new borrowers remortgaging. What I've said doesn't preclude that. But existing borrowers CANNOT remortgage to another mortgage from the same lender - it's a nonsense to do so.
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    MarkyMarkD, I suppose that kiwi_saver could complain if the exit fee wasn't paid and the legal charge released then re-applied to ensure that the differences between a remortgage and product switch were taken care of.

    If the lender doesn't charge kiwi_saver the exit fees from the original morgage it would be interesting. After all, kiwi_saver did ask to remortgage, not change product, and should pay the appropriate costs for the difference.

    Or I suppose that next time kiwi_saver could do it by switching to a different lender on a no-fees deal and then switching back to the original lender.
  • MarkyMarkD
    MarkyMarkD Posts: 9,912 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Or perhaps not. ;)
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