Notice of mortgage rate change

koolcat

Hi

I took out a tracker mortgage in 2007 which tracks the Bank of England (BOE) rate. I thought that the rate was for the life of my mortgage but I got a call this week from my mortgage lender saying that my rate is incorrect and they are going to move it to their SRV which is a LOT higher :eek: than my tracker mortgage.

I think the only reason they discovered that I was not on the correct rate, is that recently I've made a application for a top up mortgage and want to port my existing mortgage.

It was obviously a mistake on their side that I am still on my initial tracker rate mortgage but surely they need to give me enough notice before moving me onto their SVR so that I can change to a more competitive rate which requires a bit of searches on my side?

They want to change me over to the SVR from the 20th Feb 2015. How much notice should they legally give me when changing rates? I would have thought 60 - 90 days.

Thanks for your responses in advance.

amnblog

Sounds like you have had a result and you are fortunate if they are not chasing you for the money they have lost because you have been unpaying.

getmore4less

You probably got the notice in your original mortgage docs.

Why did you think it was for the life of the mortgage?

Time to get out your docs and read them.

koolcat

I don't think they can ask me for the money they lost because it was their mistake my rate has not changed when it suppose to. If it did change when it did, I would have remortgaged long time ago.

I know that they need to change my rate but how much notice should they give me before just changing my rate.

koolcat

I thought it was for the life of my mortgage because when I've always called them about my accounts, they have always confirmed that its for the life of mortgage. Also my annual mortgage statements that I receive each year clearly state my current rate and period remaining.

I cant find my original documents but they sent me a copy and I see that was suppose to be for the first 3 years only. I don't remember those details from 8 years ago.

chanz4

so 5 years at less, I wouldn't rock it as legally if its in the contract they would have 6 years to chase

koolcat

So what i hear you all saying is that I should just accept the new change in rate which in money terms is over £400 per month for me.

Again back to original question, how many days notice notice should they be giving when they going to increase the rate?

TrickyDicky101

koolcat wrote: »

So what i hear you all saying is that I should just accept the new change in rate which in money terms is over £400 per month for me.

Again back to original question, how many days notice notice should they be giving when they going to increase the rate?

They are correcting a mistake and changing to the agreed contractual terms. They don't need to give you any notice.

koolcat

TrickyDicky101 wrote: »

They are correcting a mistake and changing to the agreed contractual terms. They don't need to give you any notice.

Thanks TrickyDicky101 for the answer to my question.

getmore4less

How did you not know you were getting a 3 year discount tracker?


Read the T&C they sent you it should say in there what notice they need to give at the end of the three years of the current SVR and new payment.

DOn't you keep your annual statemnets with the original docs?

dimbo61

So now you need to get looking !
What is the outstanding balance and how much is the property worth.
Have you got a good income to support the mortgage and good credit score.
Some very very good deals at the moment