How long does a 2-year fix last?!

Ferrety_2

Yes, I'm aware how daft the question sounds.

I'm currently having a bit of a catastrophe remortgaging a house I currently have on a consent-to-let with Cooperative to a proper BTL.

My Coop residential mortgage started on 16/01/2013, when I lived there and had no plans to move. Less than a year later I had to move 150 miles for work and couldn't sell, so after a long and expensive 3 months waiting to have held the mortgage for a year, I was allowed consent to let.

I arranged to remortgage to a buy to let on, or asap after, 17/01/2015.

Then today Coop sent a redemption statement showing early repayment charges apply until 28/02/2015??!?

I got home and called them too late to be put through to anyone sensible and the person in the call centre couldn't explain it.

This isn't the first massive gaff on this mortgage - I had to phone recently to request my statement for my tax return... to discover they had sent it TO MY TENANTS!!! :mad:

That's bad enough, but it's actually the second year running they've done this and I've changed address again since then, so they've actually reverted to a former mailing address for me after catching up on the last one!

They also had no record of my consent to let... despite charging me an admin fee last year and loading my rate by 1% for 12 months.

They obviously can't administer consent to let properly, so why won't they just let me leave for somewhere competent??

I'm hoping this is just yet another error, but I'm doing my nut - does anyone know of a more sinister reason for why a 2-year fix might actually last 2 years, 1 month and 12 days (obvs the hapless call centre guy hadn't a clue...):(

Thrugelmir

Lenders advance funds in tranches. All the mortgages in the tranche will have the same product end date. In your case 28/02/2015. Some borrowers will have a period of under 2 years and some over. This would have been very clear on the initial paperwork.

The reason behind this is entirely administrative. As lenders cannot have 5,000 mortgages on the same product all ending on different or variable dates. Systems will be programmed to roll the mortgage over to the follow on product automatically.

Nothing new. Has been the same for decades.

Ferrety_2

Actually it isn't clear on the initial paperwork - all I have on end dates are illustrations, the latest of which has an end date for 31/12/14.

No end date for the 2-year period is stated on either the original completion letter nor the consent to let letter issued exactly one year later. They state 24 payments - which I've made.

In fact, at the bottom of my Jan 2014 mortgage statement it says early repayment charges apply to 01/01/15 - so I played it safe and waited til completion date of 16/01.

I don't yet have this year's statement - last year they wrongly sent it to the rented address then re-sent a statement to my old address; this year they disregarded both that old address and the new, new address I gave them in June and again sent all my financial details to my tenant!:eek:

If two years can, in fact, mean two years + six weeks, this issue needs to be made more public. It will be costing me approx £900.

pjread

Snap! Slightly confused me too (I completed 30 Jan 2013, ERC until 28 Feb 2015)

In fairness, it is stated on the original KFI and the completion statement...

Ferrety_2

I have not a thing stating 28 Feb. Seeing as they've managed to send a number of confidential documents (they don't even know exactly what!!) to my tenants, I'm assuming it's yet another mistake.

No consolation when they've mishandled all my most personal financial info and potentially jeopardized my letting business.

kingstreet

Your mortgage offer, the legal document on which your mortgage was agreed sets out the rate and the expiry date.

It mirrors the key facts illustration on which the offer was prepared.

Ferrety_2

Actually it doesn't and that's the problem. They differ so wildly, but the one concrete doc I have confirms 24 payments.which I've made

kingstreet

Your mortgage offer doesn't tell you the rate and the date it is fixed until?

summerholiday

Interesting that you ask this.

A few years ago, at least 3 months before the end of my previously arranged 5-year fixed-interest mortage rate - approximately 3 months, I enquired about offers and rates of mortage company I was with - this I did over the telephone. I received an offer by a charming representative and was almost lead into simply accepting the offer put to me... immediately ... over the phone ....including the offer to consolidate the mortage arrangement fee to tie-in with the existing mortgage offer. Thereby, increasing my mortgage borrowing by fees of £995 ........ so enticing and...simple; customer services wanting your best outcome ...easy to do, yes?

No paperwork but .........I wanted to understand ... and read through the paperwork, in depth, before committing/signing paperwork to anything, after all the mortage sum is an ongoing and the high expenditure and commitment for most of us.

I held back and arranged for the existing mortgage provider to send the details in the post.

Some days later I received the paperwork and a day or so later received a complete different offer interest rate than that previously offered.

On reading the number of months the offer covered, I noticed it was for 22 x months at the lower rate against the 24 months ie general initial 2 years offered.

I telephoned the company and queried this, explaining my misunderstanding and was then given 24 plus 2 month term !

Perhaps this will be of help to you in your circumstance , ie, nothing is truly set and negotiable.

summerholiday

Hi, I have to apologise because I seem to be responding inaccurately to blogs.

hcb42

I have never had a mortgage offer that didnt state this, but if yours states differently then it should be an easy process to avoid ERC