Mortgage ending in 15 months - so no discount deal -help!

Prycop

A loyal Principality mortgage holder for 23+ years.
Interest only mortgage (!) ending in 15 months.

Principality have been good over the years offering discount or fixed deals as a previous deal finishes.

Last deal finishes this week so contacted to see what new deal was on offer, the answer was that we have 15 months to go and the only deals on offer are for 24 months+.

We are now stuck on SVR currently 4.99% for the remaining 15 months - estimated extra needed to pay compared to our last deal over the 15 months is about £4,500. This will of course be £4,500 less towards our endowment shortfall.

Feel this a 'cheap' way for Principality to get an extra £4,500 from us without a pre-warning. We spoke to a mortgage adviser in April 2014 and potential issue for us never cropped up.

Is there any way around this? Thanks for any advice.

payless

Ages, and amounts / dates of any maturing investments?

mrginge

When you ask to borrow money from them on a new deal the they borrow that money from someone else. They do so in a tranche of financing over a set period. They don't get the choice to vary how long they borrow it for.
Hence neither do you.
If they did operate that way then mortgage rates in general would be much more expensive.
Unfortunate for you perhaps, but it's nothing to do with principality trying to fleece you.

Goldiegirl

Unless the advisor had a crystal ball when they saw you in April 2014, they wouldn't have known that there wouldn't have been any 15 month deals available in September 2015.

They are not trying to pull a fast one, you are just unlucky.

Prycop

Goldiegirl wrote: »

Unless the advisor had a crystal ball when they saw you in April 2014, they wouldn't have known that there wouldn't have been any 15 month deals available in September 2015.

They are not trying to pull a fast one, you are just unlucky.

Thank for the reply.
According to Principality they haven't had a discount for under 24 months for a few years now - My thinking was that I could have been warned by their adviser that this was coming. We could have paid a small penalty clause to end the current deal 9 months ago and get a 24 months deal from then to the end.

ripon12

Could you not tak a deal over 24 months with them ?? Although a bit longer it may save you some money?

mrginge

Prycop wrote: »

Thank for the reply.
According to Principality they haven't had a discount for under 24 months for a few years now - My thinking was that I could have been warned by their adviser that this was coming. We could have paid a small penalty clause to end the current deal 9 months ago and get a 24 months deal from then to the end.

did you not know two years ago that you had 39 months left on your mortgage?

Did you not see two years ago that there were no 39 months deals?

Why did you not pay the small penalty 9 months ago and remortgage on a 24 month deal?

Did you actually receive advice or did you say 'what deals have you got', followed by 'I'll have that one'?

Prycop

I'd seen 12 month deals by Principality before and assumed that they still had them.

Went through full advice with their mortgage adviser, it was the first week of the new mortgage lending rules back in april 2014 - this situation did not crop up at all.

Going to see them tomorrow and see what can be done.

Thank for the advice.

Thrugelmir

Prycop wrote: »

Thank for the reply.
According to Principality they haven't had a discount for under 24 months for a few years now - My thinking was that I could have been warned by their adviser that this was coming. We could have paid a small penalty clause to end the current deal 9 months ago and get a 24 months deal from then to the end.

How would an adviser know what the future would hold? Products constantly change to suit market conditions.

Prycop

I 'get' all your replies above but it still feels like a kick in the teeth to someone that's been with them for 23 years - another £4,500 down the drain because of a technicality when we need every penny to claw back an endowment shortfall.

firesidemaid

several options....


take out a cheaper mortgage over 24 months or longer with Prince


Remortgage with another lender over 12/24 months - fees to consider in both cases


Overpay - if you are on the SVR, is it unlimited overpayments? Do you have any savings? What is the current value of your endowment? Have you overpayed anything?


Again, do you have Interest Only or did you covert at some point to a repayment?


There is not much incentive to lenders, as in theory your mortgage is up soon.