Bradford & Bingleys "Conversion Interest" anyone heard of it?

damixa

PLEASE HELP I NEED YOUR EXPERT ADVICE ASAP
I need some help with speaking to Mortgage Express (Bradford & Bingley) to help me deal with the sheer and absolute incompetent service they have provided to me.
I changed my 3 buy to let mortgages to Birminham Midshires and told them all 3 were good to go for end of October . My solicitor called this Monday and told me that several payments seemed to be missing from the redemption statements provided by Mortgage Express and that I owed nearly £2000 on each mortgage.

To cut a long story short I have just been advised by Mortgage Express that the shortfall was due to, and I quote “ A new system was set up in 2005 called Conversion Interest. It was that as mortgages were always taken in arrears, it was decided by the bank that they would now be taken at the correct time. This however means there would be a shortfall in your mortgage at redemption. It was a business decision not to tell our customers this but to just add it on to any redemptions” WHAT ARE THEY ON ABOUT!!!! Apparently ALL BB customers are subject to this but NONE of them are aware. I have been told by BB that ALL BB customers will show a shortfall at redemption.

I have NEVER been told of this, as far as Im aware I was ALWAYS on a daily interest mortgage. I have all my yearly statements showing I owe nothing (except the advance) and now just as I am leaving the invent this very dodgy excuse to get nearly 3k extra out of me.

I am stuck between a rock and a hard place at the moment. I cannot afford to just pay 3k out of thin air, I have my new mortgage company stating I may have to reapply and the interest rate will not be as favourable as the one offered…and if I am forced reapply this means I have to stay with Mortgage Express (Bradford & Bingley) in the interim and pay an extortionate 7.75% as, of course, I will not take a contract out with them.

Can you please help. This is very urgent, I am stuck at the moment I need an expert to tell me about this “Conversion Interest” I have googled this and cannot find anything even close. Surely they can not just "INVENT" this shortfal and force it on us with no forewarning.

homer_j_3

First of all - Thank you for bringing this to the site, it is very interesting indeed. Do you have this excuse in writing? If not get them to confirm in writing.

I am sorry but ME hold the ace of not releasing the charge if they do not feel that their debt has been satisfied (albeit - you feel and I agree it sounds like it has). Without this charge being released, no mortgage company will be able to give you a remortgage as they will not be able to secure a charge on your property.

When does your current mortgage offer expire on the new deal with BM?

I would make an official complaint and persue to the FOS unless they agree to waive this amount in full. I would also ask you solicitor to check the legality of this.

BTL mortgages are unregulated as such but I do feel that ME cannot just do what they have done as they have altered the terms of the contract without your agreement.

I am sure many other ME/BB customers are going to be interested in seeing this post.

What was the BB's marketing campaign of late..."what dreams are made of".. lol

damixa

Thanks Homer_J I will get this in writing . My BM offer will expire in about 1 week. They (BB) have me over a barrel.

I am SURE ALL BB customers would love to know about this, as you say. I hope this post gets to them all.

Funny thing is, when I challenge them on the phone (I am on my third escalation now) nobody can offer me an explanation of this charge. They have ALL said they dont have the authourity(!) to discuss this and have passed me on. I am now sitting here waiting for someone with knowledge of the charges to call me. It sounds like a brazen invention if you ask me.

Note to all BB customers : They WILL charge you this and you have not been forewarned. If you have just left BB I would advise you to check your final redemption statements

MuDvAyNeX

Hi there Mortgate Express are not charging you anymore than you owe to them, the way that they changed the system wasnt the best and they should have informed customers (imo).

When you took your mortgage out it was done in arrears e.g you paid for June in July etc.

In 2005 when they changed the systems over to something called UFSS they started to bill you for the month you were in, the way UFSS works is that it isnt possible to charge in arrears hence the change.

In June 2005 when they changed this over your payment in July was for July and not June like it would normaly be, the *conversion interest* is for the 27 days in June 2005 that were not paid for, normaly you would have paid for June in July etc

What they have done isnt wrong in one aspect but i feel they should have informed there customers of this change.

You will be paying no more than you should if they used the old systems, it just looks like you might be.

They way it will work on your redemption is that those 27 days are carried over to the redemption, your just paying what is owed to MX, but like i said i feel they should have advised there customers of this change.

Like i have said you are not being asked to pay anymore than you already owe to them.

The legal team looked into the matter before they decided not to inform the customers and everything is legaly above board even if morally it isnt (imo)

Your morgate has never changed from being a Daily rate mortgage, its just the billing system that was changed.

I work for Mortgage Express btw

Also who ever has told you they do not have the authority to tell you how the conversion interest works is incorrect, all the agents should have full training on this matter, what they have already told is explains what the money is for, its not a charge its money that is owed to MX in interest.

My words are not that of Mortgage Express but are my own opinion.

P.S not all BB customers, just Mortgage Express as they moved over onto the new systems but BB still use the old system (although there new mortgages are now going to use the new system)