Early repayment charge - sorry it's a long one

Acdc

Hi guys. I am after some advice on reclaiming my early repayment charge back from my mortgage with Natwest. In short the customer adviser at Natwest advised I would get the full amount of just over £1500 back in a lump sum, should I take out a new mortgage with them and complete a property purchase in 4 months. Now, having spoken with the qualified mortgage advisor, I have been told I was misinformed and that I would not get any of the charge back. Natwest have sent me a hamper and a cheque for £50 by way of an apology/inconveniencing me. Should I take the £50 or pursue them for more?

The long version. I bought a house under the Help to Buy scheme over 3 years ago. This meant that the property developer and government had 10% equity each in my home. I had a 5% deposit so to the mortgage company, Natwest, it appeared as though I had a 25% deposit. Natwest and Nationwide were the only mortgage lenders prepared to provide mortgages in this scheme. Upon selling my home I would lose 20% of the purchase price to pay back the developer and government. I sold my home last December - the intention was to move in with my girlfriend but things did not work out. This left me in the position of being too far along in the sale process to find and buy somewhere else. Cancelling or delaying the sale was not an option due to numerous reasons. At the time of the completion of the sale of my home I was well aware that I would have to pay the early repayment charge. I still had 6 months on my mortgage and the charge was clearly detailed on my annual mortgage statement. That being said I was under the impression, from research on the Internet, that if I took out a new mortgage with Natwest I may get some of the charge back. So less than a week after my house was sold I made an appointment to see someone at Natwest to see how much I could get a mortgage for. At this appointment I explained I had sold my house but I was looking to quickly get back on the property ladder. I also enquired about the early repayment charge. The lady I spoke to rang someone and then confirmed if I took out a new mortgage with them and the home purchase completed with 4 months I would get the full charge back as a lump sum. At the meeting I was soon told I could only get a mortgage in principle and not complete a full mortgage application until I had had an offer accepted on a property. At no point was I told I was speaking to a customer advisor and not an accredited mortgage adviser.
Within a few weeks I had found somewhere and had an offer accepted. I made an appointment to see Natwest again. At the appointment (a different person from my first appointment) I went through the application and I was approved. At the end of the appointment I asked about the early repayment charge. I was basically told quite bluntly I had been misinformed and I would not be getting any of the charge back. Needless to say I was not best pleased and I expressed that I was disappointed to have been misled. The mortgage advisor explained the lady who told me this was not a qualified mortgage advisor, should not have told me that I would get the charge back and she would be given training. It was also said that I was a higher risk now, my mortgage terms were now completely different and it was irrelevant that I was a returning customer. I fully accepted the terms had changed and being a higher risk - I have gone from having 30% equity, largely due to the government scheme, to having a deposit of around 8%. The point I made was had I been told I would not get the charge back earlier I would have looked elsewhere for a mortgage and as I work as an insurance underwriter if it one of my colleagues quote the wrong (lower premium) or terms we would have to stand by it. I made the remark that I should have got it in writing that I would get my charge back. I was told Natwest would not put that in writing. I was eventually told they will speak to a manager and see what they can do - no promises but I may get some of the money back, certainly not all of it.
I have now, a few weeks later, received a hamper and a cheque for £50 by way of an apology. Do I take this and be thankful or should I pursue them for more?
To reiterate I have no issue with the charge being applied. My issue is being told I would get it back only to be told this is not the case. There is a huge difference between £50 and £1500. I am considering writing to the head office of Natwest (once my house purchase completes) and if necessary I am quite prepared to go to the FCA or ombudsman.
Any advice you can offer would be greatly appreciated.
Thanks

dunstonh

If you disagree with the outcome of your complaint then your choice is to leave it at that or refer it to the FOS. The FCA are not involved in this.

The complaint response should tell you how to refer to the FOS. Writing to the head office is no use as they will refer you to the complaints team who have handled your complaint. The complaints process is defined and requires specific people to deal with them. So, going to people not approved is not going to help.

Acdc

I haven't actually raised it as a complaint with Natwest yet. I am after advice first

dunstonh

Acdc wrote: »

I haven't actually raised it as a complaint with Natwest yet. I am after advice first

If they have offered a payment and hamper then it suggests they have treated it as such.

Acdc

dunstonh wrote: »

If they have offered a payment and hamper then it suggests they have treated it as such.

Do you have an opinion on whether I should pursue this further or not?

dunstonh

Acdc wrote: »

Do you have an opinion on whether I should pursue this further or not?

Its hard to say it effectively boils down to being about a conversation with an unqualified person with no evidence to support what was or was not said.

I looked at some FOS decisions and they generally go against the individual making the allegations (although not always). Customer service staff generally handover to a qualified person and whilst incorrect information may be given, it is usually put right by the qualified person and it is the qualified person that matters. Lack of evidence also seems to be an issue.

If the staff member admitted what was said, then you would expect that the bank would be more likely to refund the money. The fact they have only issued what is classed as a goodwill gesture suggests the staff member either cannot recall or denies it.

The point over it being treated as a complaint (or not) is important as this should clearly be treated as a complaint. If it is not, then the bank is possibly in breach of the complaints process.

Thrugelmir

Acdc wrote: »

The point I made was had I been told I would not get the charge back earlier I would have looked elsewhere for a mortgage and as I work as an insurance underwriter if it one of my colleagues quote the wrong (lower premium) or terms we would have to stand by it.

A written quote is totally different matter to a verbal comment. Also an underwriter has the authority to offer a quote.

andyfromotley

I have no idea what the actual position is but i would GUESS that if it went the distance you would not win. The charge has been correctly applied. A staff member gave you incorrect information, i doubt that they would hold the company responsible in these circumstances. People, particularly untrained people, make errors all of the time and is suspect that they will take the view that the company can only be held to what it puts in writing.

Kinda sucks, but i may of course be wrong.

mike1986

Hi,

I would re engage with Natwest, you do have a 4 month grace period to port your mortgage to a new property which would entitle you to a ERC refund.

It use to be 3 months but this has been extended due to time delays in their processing!

HHarry

mike1986 wrote: »

Hi,

I would re engage with Natwest, you do have a 4 month grace period to port your mortgage to a new property which would entitle you to a ERC refund.

It use to be 3 months but this has been extended due to time delays in their processing!

I would think this is most likely. If you had ported your existing mortgage to your new property, within the 4 months, the ERC would be refunded. But Natwest weren't willing to port you mortgage, perhaps due to your change of circumstances, and so you've ended up on a brand new product.

I still think you should make an official complaint, but I don't think you'll get the £1500 back.

Acdc

dunstonh wrote: »

Its hard to say it effectively boils down to being about a conversation with an unqualified person with no evidence to support what was or was not said.

I looked at some FOS decisions and they generally go against the individual making the allegations (although not always). Customer service staff generally handover to a qualified person and whilst incorrect information may be given, it is usually put right by the qualified person and it is the qualified person that matters. Lack of evidence also seems to be an issue.

If the staff member admitted what was said, then you would expect that the bank would be more likely to refund the money. The fact they have only issued what is classed as a goodwill gesture suggests the staff member either cannot recall or denies it.

The point over it being treated as a complaint (or not) is important as this should clearly be treated as a complaint. If it is not, then the bank is possibly in breach of the complaints process.

Thanks for the advice (that goes to everyone else to). I think I will ensure I raise this as a complaint, if Natwest have not already treated as such. After all they can only say no.