Conflicting mortgage letters

sweenster

I had a Lloyds staff mortgage at a concessionary rate which was (I understand) due to expire one year after leaving their employment, being April.

In the absence of any letters prior to this I called to check and had it confirmed there was nothing on file to suggest my rate should end and there was no chance of it being changed for April. The chap did say he would pass my details through which is fair enough, even though it meant they were only really going to be changing it because I tipped them off.

3 days later a letter arrived saying my concessionary rate had indeed expired and i would revert to their variable rate - an extra £260 ish in interest per month. [Naturally I called to complain about it increasing without notice and having been specifically told it would not change so soon, and got the increased payment in April refunded among with token compensation.]

To avoid dubiety, at this stage I now have an expectation that my rate will increase from April.

All fine except next day i got another letter, dated same as the previous one, confirming my 'new' rates and monthly payment as being exactly the same as It has been!

Where does it leave me? Another complaint? Ask if it supercedes the other letter? I won't actually know for sure what has happened until the payment is taken tomorrow.

To clarify: 2 letters received stating different rates and different monthly payments.

Landofwood

What's the problem?

sweenster

Landofwood wrote: »

What's the problem?

Added a line at the end in case it is a bit rambling. 2 letters staying different rates, essentially. New higher rate is almost certainly the 'right' one.

Landofwood

I'm still confused, I thought you called about the increased charges and had that resolved.

Goldiegirl

As an ex-member of staff, you'll know that it's possible for two different people, at different locations to action work on your mortgage. If they were doing the work more or less the same time, confusing and conflicting letters can be produced.

You also know that your staff rate is ending, so the higher monthly payment is correct, and that is what should be collected tomorrow.

If the lower payment is collected, then you should phone them, so they can put it right.

As an ex Halifax staff member, I paid off my mortgage in full about a year after I left. As I was retiring as part of my redundancy package, I was allowed to keep my staff rate for the rest of the term of the mortgage.

But they messed up, transferring me to the SVR a year later.

I decided they couldn't be trusted to administer my mortgage, so I paid it off.

I'd suggest a remortgage ASAP.

sweenster

Tbh I don't know how it works behind the scenes, I didn't work in a banking function. I am learning that it appears to be very disfunctional. I don't at all understand how a letter specifically stating my mortgage would be 'changing' to the previous rate could be produced, not if my account is now showing the SVR as the applicable rate?

Notwithstanding that, I do expect the higher rate to now apply and will remortgage unless they can offer a particularly good rate, given the poor service I've had.

My question is specifically what action if any i could take about the second letter. It looks like a mistake, but could Just as feasibly be taken at face value. There must be a process for remediating incorrect information sent to customers?

Thrugelmir

sweenster wrote: »

given the poor service I've had.

Though you knew the change of rate was imminent. Sounds as the wheels were in motion to remove the staff rate. Your intervention may have indeed caused the confusion. If you've received 2 letters almost together.

Suggest you wait and see what amount is taken before deciding what further action to take,

sweenster

Going by the conversation I had, I'd say for certain they had absolutely no idea that it should change, supported by the letter only being sent after the call. Surely there should be some degree of notice given directly by the lender before any rate change? Either way, is out just accepted that banks send letters with completely incorrect information on them?