Possible mid sold mortgage?

BronzedAdonis

Hi, took out a ten year fixed mortgage in 2008 with Halifax. Fixed at 6.7% interest only (It seemed like a good idea at the time)

After three years I called Halifax to ask how much it would cost to get out of the fixed rate. They said something along the lines of £5000. Which I couldn't afford at the time.

In 2014 I phoned to ask the same again. Halifax told me there were no early repayment charges. When I asked why they said it's one of our old ten year fixed mortgages with no ERC within the last three years.

We switched to a slightly better deal of 5% 18 months ago for 4 years.

I've just received a bonus in work so was going to enquire as to how much it would be to get out of this 4 year deal. When searching for the documentation, I found out original 10 year fixed rate documentation.

To my surprise, said noticed there was no ERC after the first four years!!!

So basically, I had been paying 6.7% interest (£671 per month) for 8 years when I could have had a better deal in 2012.

Although this ERC was in the small print, Halifax did not point this out to me.

When I called in 2012 for a cost of getting out, they never said I could wait until the following year and have no ERC.

When I switched to a better deal, they didn't tell me I could have gotten out of it in 2012 with no ERC.

What do you think?

[Deleted User]

Doesn't seem as if they have done anything wrong at all.

ACG

It is definitely not miss sold based on what you have said. At best you could probably argue poor customer service.

But if you asked a question and they answered it, they have done what was required. You could argue they should have gone the extra mile and told you that on 12 months you could leave/switch but I can not see them offering a full refund of the extra interest personally.

dunstonh

What do you think?

Nothing you have said gives any hint of mis-sale.

Looking at the possibility of poor customer service, there is a bit of incorrect information. However, this was 6 years ago. Your recollection of the call may not be correct. So, unless they recorded the phone call and still have it, it is unlikely that this has any legs. If it is recorded, then it will be dependent on what was said.

kingstreet

What has been visible on your annual mortgage statements?

For years, details of penalties and charges to repay the mortgage have appeared on them.

BronzedAdonis

Hi, the mortgage statements don't show any Early Repayment Charges.

My argument is clearly I'd have not paid nearly 7% interest for 8 years had I have known I could get out of it with no charge.

My understanding was I was in it for ten years. So basically I've paid £32000 interest. Only since switching to a better deal have I began to pay the mortgage off.

dunstonh

My argument is clearly I'd have not paid nearly 7% interest for 8 years had I have known I could get out of it with no charge.

Exactly the same as your contract said and your statements have shown (they would show when there is a penalty). So, the document audit trail is all correct.

My understanding was I was in it for ten years. So basically I've paid £32000 interest. Only since switching to a better deal have I began to pay the mortgage off.

Irrelevant. Whether the interest rate was 5% or 7%, the rate of capital repayment would be broadly the same.

In the early years of a repayment mortgage, the balance hardly drops. If you were on an interest only mortgage previously and a capital & repayment one now, then that was your choice and is a decision unaffected by your allegations.

David_White

I tend to agree with ACG, it sounds more like bad customer service more than anything else as you've called them asking a specific question to which they answered correctly.

It's highly unlikely the person on the phone was giving advice therefore they'll just give factual info to answer the question.

It would have been nice for them to go over and above with their answer however they're not really obliged to do so.

BronzedAdonis

Mortgage lender is looking in to my complaint.

My argument is, I called them on more than two occasions to check ERC charges, they should made me aware.

Whilst the ERC charges were in the documentation. Wasn't PPI? What's the difference really?

ACG

ERCs are a part of the contract.
PPI was an optional extra that people were not necessarily made aware of but charged for.

If when you called ERCs were applicable, then they have made you aware.

dunstonh

Whilst the ERC charges were in the documentation. Wasn't PPI?

PPI was a third party product optionally added on. ERCs are part of the main contract. You couldn't get the mortgage deal without the ERC. So, nothing optional about it.

My argument is, I called them on more than two occasions to check ERC charges, they should made me aware.

And they will check to see if they have a recording of those calls. If they do, they will listen to them and see if a mistake was made. If they don't then there will be nothing to support your allegation.

It is also important to remember that a clerk on the phone is not an adviser. They would answer questions as asked. They are not knowledgeable enough usually to second guess what extra info may be useful for you. They also have to avoid giving opinion and advice as that is not within their regulatory permissions. So, often you will get strict factual answers with nothing extra given. That does not make it complaint worthy.

The key will be in the recordings if they still exist.