Sainsbury's Bank changing terms and conditions on old mortgages

Eric_the_half_a_bee

I have a Sainsbury's Bank "Options" flexible mortgage taken out in the late 1990s. The original terms and conditions allowed payment holidays, lump sum drawdowns, etc.

A year or two ago, Sainsbury's wrote to me and advised me that the terms and conditions of my mortgage had changed, and that these facilities were no longer available. This was annoying, because I still wanted to use them, but I assumed there was little I could do.

Last week, they wrote to me again, referring to these changes and saying:

"Your terms and conditions didn't allow us to vary your mortgage in this way, we're sorry and we should have sought your approval. In consideration of you now agreeing to the terms and conditions included in this letter, we'd like to give you a payment of £150.

We've enclosed a cheque for this amount and by accepting it you agree to now be bound by the new terms and conditions."

I doubt most recipients of the letter appreciate that they don't have to sign away their rights for £150 if they don't want to. Seems like shoddy practice to me.

silvercar

I would think most recipients would be delighted!

These mortgages must be 20 years old and nearing the end of their term. If borrowers haven't yet taken advantage of the terms they are probably unlikely to do so in the last few years when most will be considering redeeming their mortgage.

TrickyDicky101

Whilst I take account of the caveats that Silvercar has pointed out, I agree with the OP that I would rather have the flexibility than £150. However, I'd be pretty happy with Sainsbury's effectively giving me the option to accept their new T&Cs (and the offer of recompense for it).