 SVR – credit file & no switching deals available

Flashmanchop

I will keep this fairly short and sweet, as there are a few key facts rather than heresay. Just want peoples experiences, or thoughts on how best to proceed.

Have had an Alliance & Leicester mortgage for 4 years, was on a fix, moved onto the 4.99% SVR.

Enquired in October 2012 as to available switching deals. did not want to amend any parts of the loan, term, value etc etc. just wanted a fixed or tracker tie in, far better than the SVR.

Enquired this week as some of the offers could save ,oney, and with overpayments knock years potentially off the mortgage.

They advised no switching products were available to me, as I had a couple of blots on my credit file.

I never agreed for them to review this, however they advised they shared information all the time.

I asked why no deals available, as ALL current offers on website would save money, however they said that they cannot because it would put undue financial pressure on me and that because of a tie in redemption period and level of 2%-3%.

I don’t buy this at all, as the logic does not make fare and reasonable sense to me. (it does from a business point of view..)

I have lodged a complaint, and am writing to them on the basis that they are not following the FCA “Treating customers fairly” policy and rulings. The basis of argument revolves around them believing that putting me on a fixed deal, for a fixed period but with a early redemmtion charge would put undue financial pressure on me.

Redemption charges are always dealt with at closure of the loan, by sale or otherwise.
Redemption charges and becoming in arrears are two separate issues to me.

I would add that:-

Plenty of equity in mortgage
Never missed a Mortgage Payment, both personally or Buy-To-Let.

Feel that this policy they keep referring to basically ties me in with the highest rate they have, as they know I am not able to remortgage elsewhere.

kingstreet

Santander is looking to reduce its mortgage book and to get rid of as many mortgages as it can - particularly the old A&L book first.

They will do nothing to try to keep you, in the hope that you move elsewhere.

Frankly, TCF can't be applied to inertia. None of the six outcomes is being breached. Existing customers are not entitled to new borrower products, so if the lender chooses not to offer existing customer retention products, it will not have a problem with the FCA as long as your KFI/Offer told you your follow-on rate would be SVR.

amnblog

KS is right.

Rather than keeping you on the SVR as they know you cant go elsewhere, Santander (A&L) probably would like you to remortgage elsewhere. If they wanted to keep you on the books they would offer some incentivised rates.

Unfortunately, this situation seems to suit neither party.

You suggest there are some 'blots' on your credit file but that you have never missed any mortgage payments.

I often find clients consider a regular mortgage payment record can override an otherwise poor credit file, this is not the case.

Get a copy of your credit file from Experian or Equifax and have someone who knows what they are doing take a look at it to establish if you have any remortgage options.

Flashmanchop

Unfortunately there are no remortgage options at all.

Surely the fact that they are potentially increasing financial hardship whereby I could be offered another deal means they are not acting responsably.

I know I am not going to win, however feel aggreaved that they think they can just rough shot things.

Hopefully they wont see fit to try the same tactics as Yorkshire Bank with current BTL products.

Flashmanchop

I had only made the point of having a "clean" mortgage payment history, as Santander/A&L state how easy it is to switch and no forms need filling in etc, no additional funds are sought.

c85

im with santander also stuck on the variable rate since october 2012. they cant/wont offer me any other deal, i have never had any mortgage arrears in the near 5 years ive been with them. remortgaed to a new 2yr deal in october 2010 with no problems but for some reason this time they wont entertain me. they also will not provide a reason. its quite disappointing considering my LTV is only 60%. problem for me is applying to a new lender our affordability doesnt com close to the 77k we need so guess im stuck on the variable rate for life unless income improves and other debts reduce lol

ILW

If nobody else wants to give you a better deal, why should they?

Thrugelmir

c85 wrote: »

other debts reduce lol

There's your real issue.

Flashmanchop

ILW wrote: »

If nobody else wants to give you a better deal, why should they?

you sound like you work for a bank.

For me it is the princepal of the weak excuse they are using to fob me off with.

if they managed to come up wity a far better excuse, one which has some logic behind it, maybe i would roll over and let them tickle my tummy.

I dont have an issue paying, and i never will, but, a so many people now dont have any, it is the princepal of the matter.

Flashmanchop

Thrugelmir wrote: »

There's your real issue.

Debt is not the biggest issue, (it is really) but it is the "computer says no" mentality of the processes banks go through to review risk.

Did they take the time to ask why I may have had something on my ever so precious credit file? No.

Thrugelmir

Flashmanchop wrote: »

Debt is not the biggest issue, (it is really) but it is the "computer says no" mentality of the processes banks go through to review risk.

It is for many potential borrowers. So while you quote TCF. Banks are increasingly under an obligation to assess affordability.