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Problems with Barclays Mortgages
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andyavery
Posts: 12 Forumite
Hi
Just wanted to share my current issues with Barclays bank.
We are in the process of moving house. Barclays were happy to help by porting our mortgage to the new property.
Unfortunately, the bank decided it didn't want to loan on the property we are buying. We were not told why in detail as the survey was not disclosed. We had ourselves had a full structural survey on the house which had shown there were no issues of concern. The bank refuse to re-consider and will not give details of what was wrong.
So, Barclays without reason decide to not loan on a perfectly good property so we have to leave them. They then decide to hit us with a £5750 fine for leaving 'early', even though they pushed us - our fixed rate ends in March.
In addition to this they want to add £275 to this to cover the costs of ending the mortgage - as if the £5750 doesn't already more than cover that!
If we paid every month in full to the end of term fixed rate, this would be less than the £6000 they want to charge us - and we would have paid off some capital too. Yet Barclays insist the £6000 is to cover their costs.
The rules state that the fines must reflect the costs incurred by the bank - I think this is not the case at this late stage.
I have complained and the bank say "get lost". They even put the phone down on me when I asked why other banks do things differently.
I have a complaint open with the financial ombudsman. I am awaiting the outcome.
Many other banks have a phased approach to the early repayment charge so it is maybe 5% in first year then 4, 3, 2 and 1 to reflect the reduced cost to the bank and stay within the law. Other banks cap the fee to avoid it being excessive. It seems that Barclays lawyers have decided that this is not needed and they stand to profit from families in our situation. I wonder if these are the same lawyers who suggested fixing LIBOR was a pretty neat idea...
Just think this is worth sharing for those thinking of taking out a mortgage with Barclays or any other bank, consider the cost of early repayment as the bank is unlikely to want to be reasonable. Consider this even if you have no plans to move house.... yet....
I will update if there is any progress from my complaints.
Cheers
Andy
Just wanted to share my current issues with Barclays bank.
We are in the process of moving house. Barclays were happy to help by porting our mortgage to the new property.
Unfortunately, the bank decided it didn't want to loan on the property we are buying. We were not told why in detail as the survey was not disclosed. We had ourselves had a full structural survey on the house which had shown there were no issues of concern. The bank refuse to re-consider and will not give details of what was wrong.
So, Barclays without reason decide to not loan on a perfectly good property so we have to leave them. They then decide to hit us with a £5750 fine for leaving 'early', even though they pushed us - our fixed rate ends in March.
In addition to this they want to add £275 to this to cover the costs of ending the mortgage - as if the £5750 doesn't already more than cover that!
If we paid every month in full to the end of term fixed rate, this would be less than the £6000 they want to charge us - and we would have paid off some capital too. Yet Barclays insist the £6000 is to cover their costs.
The rules state that the fines must reflect the costs incurred by the bank - I think this is not the case at this late stage.
I have complained and the bank say "get lost". They even put the phone down on me when I asked why other banks do things differently.
I have a complaint open with the financial ombudsman. I am awaiting the outcome.
Many other banks have a phased approach to the early repayment charge so it is maybe 5% in first year then 4, 3, 2 and 1 to reflect the reduced cost to the bank and stay within the law. Other banks cap the fee to avoid it being excessive. It seems that Barclays lawyers have decided that this is not needed and they stand to profit from families in our situation. I wonder if these are the same lawyers who suggested fixing LIBOR was a pretty neat idea...
Just think this is worth sharing for those thinking of taking out a mortgage with Barclays or any other bank, consider the cost of early repayment as the bank is unlikely to want to be reasonable. Consider this even if you have no plans to move house.... yet....
I will update if there is any progress from my complaints.
Cheers
Andy
0
Comments
-
In your shoes, I would prob have walked from the house I was buying and started looking again in Dec/Jan with a view to completing when the mortgage deal expired. Know the timings don't always go to plan, but I wouldn't have paid the £5k-odd.
Can highly recommend YBS. They have always been fantastic and very competitive.2024 wins: *must start comping again!*0 -
Surely they're "charging you the fees you agreed to when you took out the mortgage", not "deciding to hit you with 'fines'"?0
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