How long does a 2-year fix last?!

Ferrety_2

It was a remortgage and coop took an age to complete so offer letter states 31 December. Then it passed onto consent to let and that offer states 28 Feb - but why on earth would receiving consent to let increase the Term?! Again, it doesn't tie up with number of repayments at all.

amnblog

Lets be absolutely clear here.


Some fixed rate products are designed to run 24, 36 or 60 months after completion.


Some are set to run to a certain date. Therefore when you complete your purchase or re-mortgage, that date may be more or less than exactly 24 months away.


A borrower today taking a rate fixed until 31/03/2017 may complete next month and get close to 25 months on the rate, or complete in April and get 23 months on the rate.


Your offer will say something like this is Section 4.


A fixed rate of 2.19% until 31/03/2017

or

A fixed rate of 2.19% that will apply from completion for a period of 24 months


If you don't think it does - check again.


Don't be caught out by the figures shown on your mortgage illustration which will have been produced before you submit your application.


Your illustration may say 28/02/2017 yet that product may be taken from the market before your application process and a new one offered on the same rate but dated 31/03/2017

Ferrety_2

I've just had a very frustrating conversation with Cooperative.

The issue is, the original agreement they sent me stated 31/01/15 as the end date.

When I received consent to let, they sent me a new one, with the date changed to 28/02/15. I should have queried this, but in m defense, they made it clear in phone conversations there would be no change to the fixed term, only to the rate (+1%).

They now have no idea which date is correct and have given me the option of waiting until Friday when they may/may not have worked it out, or going ahead with my remortgage, paying the £900 early repayment fee, then trying to claim it back afterwards!

Trying not to scream!!!

Ferrety_2

Of course, this all comes in the wake of them sending my mortgage statement out to my tenants, so I don't have that or any other more recent documents that might have flagged this up to me a bit earlier.

ACG

I used to work for co-op mortgages, their deals typically have a set end date. So a 2 year deal can be just over or just under 24 months.

Every couple of months we used to have peaks in business where deals came to an end.

A lot of lenders do something similar.

Edit: Just seen your latest post.

Ferrety_2

The problem is I have two different offer letters that have two different end dates - one for the original remortgage (31 Jan), the other for the consent to let (28 Feb) - so a discrepancy of two months.

Whichever is correct, I am going to have to pay the ERC and then try to complain and pay it back, as I am repaying other loans as a part of this remortgage and my new mortgage offer expires before 28 Feb.

They admit there has been a mistake with there being two different figures given - but they don't yet know which date is the correct one!

I am at the end of my tether - last time I called they could find no record of my consent to let... despite charging me for it for the last year. Not to mention getting my address wrong - twice, hence reverting to the address the mortgage is on and sending any docs for the last year to the tenants.

M0ney

I think this is normal, my two year fix (halifax) was taken out mid July 2012 but didn't end until August 31st 2014.

pamelab21

Sorry I can offer no help but can sympathise, we are with Britanna/CoOp and i have had to contact them recently as we are looking to move house and are 2 years into a 5 year deal, we are getting all different info depending on who you speak to....I am finding them very frustrating to deal with!

Ferrety_2

After a tense 24 hour wait, they resolved it - the date should never have been changed on the amended consent to let offer - phew! They immediately sent a new redemption statement, so mortgage is back on track.

Still appalled they sent my statement to my tenants though - if it had gone to my old (rented) address it would have been annoying, but to actually send it there is plain embarrassing - I can now assume my tenants know what I pay on my mortgage.

Which in fairness only shows them I'm earning naff all off them, hence the eagerness to sort a proper btl mortgage!

anselld

Ferrety wrote: »

Which in fairness only shows them I'm earning naff all off them, hence the eagerness to sort a proper btl mortgage!

Not sure how having a BTL mortgage will improve your earnings. Surely the overall cost must be at least comparable with a residential mortgage even with the 1% loading?