Execution-only fixed deal

edallen41

Hi,

Having discussed with a broker and determined that on a 2 year fixed deal, they could only save me around £500 (over the 2 years) on remortgaging, I'm deciding to stay put with my current lender, Britannia.

My main reason for doing so is that remortgaging with anyone drops my payment by around £500/month, so getting things in place just a month quicker would negate any savings made by switching. Effectively I'd be doing a product transfer rather than remortgaging, meaning no need for MMR delays if I opt for execution only rather that with advice.

My only concern is the cautions regarding execution-only deals not providing "protection of the FCA's suitability rule". I'm confident I understand what I'm requesting (it's a relatively bog-standard 2 year fix, with normal restrictions on overpayments and early repayment charges and a relatively decent rate that I can get onto quickly). In this sense I believe it's suitable for me, other than hypothetical complaints regarding suitability, does it limit me otherwise regarding the financial ombudsman?

Thanks for advice already given on previous thread, I just want specific opinions on execution only before plunging in.

Ed

Annisele

I don't really understand what you're asking, but I'll take a shot.

Taking a product on an execution only basis doesn't prevent you from complaining about administration. So, if the lender manages to miscalculate interest, or provides the wrong documents to you, or takes your payment three times on the same day, you can still complain to the lender.

You won't be able to complain to the lender because the product was unsuitable - so if you wanted something portable but this isn't, or if you knew you were moving home in a year but there's a huge ERC, or just if rates fall - that's tough.

Thrugelmir

Is this what you are referring to?

Execution Only Service
We provide an execution only service to enable those customers who prefer to make their own choices. Execution Only means that you choose a product yourself without receiving advice from us, this service is available in certain circumstances through our Telephone channel.

Customers opting for this service will not have a suitability assessment and will not benefit from the protection of the FCA's suitability rules.

If you are unsure, have any questions or doubts we are happy to provide you with an advised service at no extra cost.

In essence you chose the product and there's no grounds for a mis sold complaint.

edallen41

Mis sold complaint aside, all other rights remain though yes?

I don't really have any qualms about no rights regarding misselling tbh, as I don't think a 2 year fix at normal market levels of interest with very standard T+Cs (which I have read thoroughly) is particularly easy to mis-sell - I specifically want 2 years due to the possibility of a change in circumstances at this point (regarding both job location and a salary increase).

Sorry if I wasn't clear, I think I was just worried that I wasn't too worried about not having rights regarding misselling if you get what I mean lol. I think it seems a fairly sensible (and not irresponsible on their part) choice.

Thrugelmir

edallen41 wrote: »

Mis sold complaint aside, all other rights remain though yes?

Yes all remain. You are not signing away any other rights or protection.

In this era of tight regulation lenders will quite rightly protect themselves.

edallen41

So after speaking to them on the phone several times to confirm details, having been told I could go ahead with execution only deals (them having already checked this against my mortgage reference number) and having paid in the £75000 lump sum, I called Britannia today, funds having cleared, to switch execution only on to a 2 year fix.

It was only at this point that they said we can't, as we got our mortgage through ShareToBuy (as a graduate mortgage though, they essentially acted as a broker and have zero equity in the property, so it's a traditional mortgage). They said this was because they no longer deal with ShareToBuy and they are only required to maintain the mortgage and their policy is to make no further changes to such mortgages. I am entitled to leave and remortgage elsewhere at any time for the £30 charge - I was never informed of this change of terms at any point (though I'm aware that they're allowed to change terms whenever they wish - it would have been nice to have been told though, at the very least on multiple calls to them last week).

I've put in a call to London and Country, I guess it's going to have to be a move elsewhere, probably for the same end cost, but significantly more hassle. Not happy.