Can we reclaim penalty charges on a Buy to Let Mortgage

rachehut

Hi everyone. In October 2007 my husband and I commenced a Mortgage Trust interest only But to Let mortgage, recommended to us specifically because of its portability. When we subsequently asked Mortgage Trust to move the mortgage toanother property, we were told that they were no longer honouring theportability of the product because of the "recent deterioration in marketconditions". We were not informed of this change to the conditions of ourmortgage. We paid £6800 in redemption penalties,but this figure was not illustrated to us in any of the paperwork associatedwith the written offer. We feel that the figure was unreasonable, not madeclear to us, and Mortgage Trust should not have been able to change afundamental condition of our mortgage without at least informing us. We recently wrote to the Financial Ombudsman and have today received a reply stating that Buy to Let mortgages are not covered by them and neither is The Mortgage Trust company. Does that mean that's it? No further avenues for us to persue? If anyone can give us some advice, we would very much appreciate it. Thanks.

Thrugelmir

What precisely does your mortgage contract say with regards to portability? Rarely is portability a right. More normally it is subject to the discretion of the lender. As the application for the new mortgage is subject to the terms and conditions at the time. Mortgages are not transferred only the terms and conditions are. Since 2007 the mortgage market has changed significantly.

rachehut

It says "This mortgage is portable".

kingstreet

Portability means you may be able to port the rate from an old mortgage to a new one with the same lender if the lender is willing to lend to you again.

If it chooses not to lend to you for any reason, you are unable to port the rate.

As buy to let lending isn't regulated, you do not have the consumer protection of regulated products, such as the FOS. You would have to take the lender to court for breach of contract instead.

rachehut

It seems very unfair. It would no doubt cost us as individuals more than £6800 to take a big company to court, but we still haven't financially recovered from it. :-(

Thrugelmir

rachehut wrote: »

It seems very unfair. It would no doubt cost us as individuals more than £6800 to take a big company to court, but we still haven't financially recovered from it. :-(

Your choice to redeem the mortgage though. How long was the product fixed for?

rachehut

3 years. Our choice was to move the mortgage to another property, not to redeem it. We took the mortgage out in the first place, as I said in my question, specifically because it was portable and we would be able to move it to another property. I am new to this site and was hoping for some helpful advice as received from Kingstreet. If you don't have any advice for us, please stop commenting. I don't want to get into a pointless to and fro with you.

Typhoon2000

You cant move a mortgage from one property to another (regardless if the mortgage rate is portable). You will have to redeem it and take out another mortgage when moving properties.

Thrugelmir

rachehut wrote: »

If you don't have any advice for us, please stop commenting. I don't want to get into a pointless to and fro with you.

My personal view is very straightforward. You are wasting your time in trying to obtain any recourse.

mrginge

rachehut wrote: »

If you don't have any advice for us, please stop commenting. I don't want to get into a pointless to and fro with you.

How incredibly rude.
Doubt you'll get any more advice after that.

Happy Christmas.

rachehut

Sorry to appear rude. Thank you all for your advice.