New Mortgage rules

confused2014_2

Last October we asked our bank (C&G) if we could make over payments on our existing mortgage, to which they agreed. They apparently sent a letter to confirm the new payments.


Today we phoned them again and asked if we could stop making the over payments for the time being.


They said that the term of the mortgage was also changed in October and we weren't technically making overpayments. We are making larger payments to the new shorter mortgage term.


This clearly was not what we wanted. So I asked them to return the term to its original date ......They said ....The new rules did not allow them to alter the mortgage in any way without us re-applying.


I'm not confident that we would qualify in the same way if we had to reapply.


So now we are left with a shorter mortgage term but high risk payments if anything was to happen in the future!!!


According to this web site on the "New Mortgage Rules" news ....
"The FCA says some rules can be waived by lenders, but only where an existing borrower is not increasing the loan amount and where the lender deems the move to be in the borrower's best interests"


Can anyone offer some advice please ...can such a rule be waived, should I complain???

Thrugelmir

Did you read the letter that was sent?

As appears that you've agreed to a contractual change in changing the term length. Contractual changes can only be made with the agreement of both parties. So the lender is within their rights to apply a policy of reapplication. You haven't been singled out for this treatment.

The lender will be taking this course of action to protect themselves from the regulatory changes imposed under the new rules.

confused2014_2

thanks for your answer.


But I didn't agree to the change of term....that was not what we requested.


Is there anyway we can appeal???

Leon_W

Go through their complaints procedure. If you're not happy with the outcome then complain to the FOS.


Those are the right channels.

Thrugelmir

confused2014 wrote: »

thanks for your answer.


But I didn't agree to the change of term....that was not what we requested.


Is there anyway we can appeal???

Suggest you obtain a copy of the letter first. As this should clearly state what you were offered and by default therefore what you agreed to.

piedmontboot

confused2014 wrote: »

thanks for your answer.


But I didn't agree to the change of term....that was not what we requested.


Is there anyway we can appeal???

Usually for a change to the mortgage contract (which a change of term is) you would at least need to sign to say you consent to the change.


I agree with the above-follow their complaints process.