First Direct fixed to tracker complaint

famousfive_2

Thrugelmir wrote: »

Did you still have the letter from 2001?

Yes still have all the documentation

kingstreet

The key facts illustration and mortgage offer have to show the details of the product you request and the rate onto which the mortgage will automatically roll when any special offer period ends.

It does not have to set out any other option which may be offered by your lender, either during, or after that product expires.

If you actually asked the bank representative for your options at that time and the representative failed to explain you could meet any early repayment penalty and change to a different type of product, listing the available products, you may have an administrative/information issue.

The bank representative is required to provide you with the information you requested to allow you to make an informed decision.

If the bank failed to do this, it may have fallen foul of TCF outcome 6;-

"Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint"

however much of this depends on what you actually asked, as the lender is not required to contact the borrower offering alternatives during the currency of a mortgage product.

Thrugelmir

famousfive wrote: »

Yes still have all the documentation

Are you able to post up the salient points in the letter?

famousfive_2

Thrugelmir wrote: »

Are you able to post up the salient points in the letter?

2002 Tracker Guarantee Letter
i1199.photobucket.com/albums/aa464/famous_five/FD/IMG_0488_zpsf30c844f.jpg

2006 Fix Offer Description
i1199.photobucket.com/albums/aa464/famous_five/FD/IMG_0487_zps55a65579.jpg


sorry but can't post links so add "h t t p : / /" to the front of images if your browser can't cope

holly_hobby

2002 - relates to a "smart mortgage" which was replaced by the 2006 fixed ?

The 2006 communication, clearly explains that after the 10 yr fixed rate ends, you go onto the lenders standard SVR - they are the terms that you acknowledged and agreed to in accepting the offer.

Pretty clear, or have I missed the point ?

H

famousfive_2

holly_hobby wrote: »

2002 - relates to a "smart mortgage" which was replaced by the 2006 fixed ?

The 2006 communication, clearly explains that after the 10 yr fixed rate ends, you go onto the lenders standard SVR - they are the terms that you acknowledged and agreed to in accepting the offer.

Pretty clear, or have I missed the point ?

H

Not sure. The guaranteed tracker was (and is as I've taken it up) an option at end of fixed and an option if take ERC . Thought that would have been made clear.

holly_hobby

But that would essentialy be the choice of another product, the KFI (as also explained by others), only has to state the standard rate your borrowings will revert to once the fixed product ends - nothing more regarding other options you may have either within or after the product end date.

To which your 10 yr fixed data confirms that your mge will revert to their SVR (not a lifetime tracker or anything else) at the end date - which clearly fulfills their legal responsibilities, and tells you what to expect in 10 yrs time.

Personally, from what I've reviewed, I'd fancy a defend on this if I were the lender, BUT the best you can do, is complain state your case, and see what they actually come up with ... however the KFI/fixed rate t&cs seem pretty clear cut .... unless you are saying (and can prove) that there were errors in there that have actually prejudiced your financial position ?

It'll be a suck it and see exercise ...

Hope this helps

Holly

famousfive_2

holly_hobby wrote: »

It'll be a suck it and see exercise ...

Quite agree Holly - thanks for you advice on all of this - really appreciate your opinion. Will keep you posted of outcome.

F5

famousfive_2

Update on complaint:
Waited patiently whilst one letter after another came through saying need more time to consider complaint and this week (77 days later) have been given written confirmation that my argument was valid for when I requested advice for my options and wasn't made aware of my options. They have been more than generous in the settlement and paid back interest from the moment the tracker became more competitive from my fixed rate and I am to be paid back £28k of interest payments. :j

You'll appreciate that is going to make a massive difference to getting the mortgage paid off early and I hope the thread can help anyone else out in a similar situation.

F5

kingstreet

Very good outcome, well done.