N&P 10 year fixed not actually fixed?

booey1

So we looked carefully at the small print and it says because of the merger with YB they reserve the right to change the interest rate until November 2014.

It's 4% at the moment, but I guess they can just up it to whatever they want next year? (You are allowed to leave if the do that)

Do I need to go back to the drawing board to find another fixed rate, or is there something I cam do/some right I have based on their advertising a 3.99% 10 year fixed?

Thanks very much.

Jimbo1976

Where is this small print? Is it on their website? Offer letter? terms and conditions?

booey1

It's in a leaflet they provide with all mortgage quotes.

Jimbo1976

I have not heard or read anything like this before. A rate is either fixed or it isn't. the idea that a fixed rate can be increased seems to defeat the object.

After watching Bank of Ireland activate an obscure condition buried deep within its T&Cs to increase the margin on its tracker mortgages then there is a risk that N&P may actually do this.

You need to decide if you want to take this risk or not

Thrugelmir

If a mortgage is sold from one bank to another. Then the new owner has the ability to vary the terms of the contract. Providing the change is given with notice and does not fall foul of the FSA guidance regulations i.e. fairness.

Mortgage contracts have had such terms for years. Though in the past rarely invoked.

booey1

Thanks, is it just a crazy risk then to take this, are we much better off with a fixed rate with a bank that isn't being merged?

booey1

Any thoughts? Is it a bad deal are we better off with a different 10 year fixed deal?