Is your bank allowed to change your interest only mortgage term?

ShirleyD

I have had an interest only mortgage with the Bank of Scotland for the last 13 years and have done a couple of product transfers during that time so as not to have to go through the full remortage process. I have only just noticed on my annual statement, that when I did the last one 2 years ago, they reduced the term of my mortgage by 9 years! During my interview for the product transfer this was not what was agreed and it was also not on the Key Facts documentation which I received recapping what had been discussed and what they were recommending - it still had the full term on it. It was on the Product Transfer document they sent me but at no time was it pointed out that this had been changed and I never picked up on it, assuming all the details would be the same. I thought that if I or they wanted to change the term of the mortgage it was classed as a remortgage rather than a product transfer. I am hoping it was a mistake and am waiting on a reply from the bank about it. Can anyone else advise?

YHM

Changing the term is classed as a remortgage. Doesn't sound right to me...

Thrugelmir

Best to wait for clarification. Little point in speculating. As without the full facts impossible to pass any comment. .

ShirleyD

Thanks. That's what I thought, but interested in others opinions/thoughts. The banks ask you to set up a 'repayment vehicle' but assuming you arrange it for the term you take the mortgage out for, I don't see how they can suddenly change it and expect you to pay it off 9 years early (the mortgage is not in arrears). Only a loan shark would go through all the terms then change the small print without notice right before you sign!