Remortgage with Co-op - Have I been had??

llyndu

This is just a rant really, but maybe someone can advise.....

My fixed term deal with Co-operative bank is coming to an end at the end of May, by which time only 28 months’ payments are due until the mortgage is paid off. Including the overpayment fund I have calculated that I will probably owe c£8,500 at the end of the fixed deal.

However I’ve been told by Coop that the overpayment fund of just over £4K will have to be returned to me before I can have a lengthy phone interview about negotiating a new deal.
I now realise that this will mean
a) losing the interest benefit from the overpayment fund for the next 3 months
b) having to take out a £12.5K mortgage rather than a £8.5K mortgage
c) being charged over payment fees if I put the £4K back into the Co-op fund
d) I’ll probably being charged the same rate that I’m already on as on the recalculation tool the 2 year cheap fixed deals seem to have a minimum mortgage term of 5 years - they wouldn’t discuss this on the initial phone call. Does anyone know?

All in all, I think that I should have just left the mortgage and overpayment funds to drift into the 4.99 SVR rate, as I will probably be charged this rate anyway and will probably have an overpayment penalty if I put the £4K back into the overpayment fund.

Grrrrrrrr

Just sounding off before I have the morning-long discussions with them tomorrow.

PS If Co-op are reading, I love you really

llyndu

I have been assured over the phone that being asked to withdraw the overpayment fund will not affect me, that I can pay it back into the mortgage without any penalty. Helpful person today at the Co-op, but couldn’t tell me what interests rates I could possibly be offered over the only 2 years remaining. Will have to do the long phone interview to find out.

I think it will be cheaper for me to get an M&S loan and pay off the mortgage at the end of the fixed deal, when no overpayment penalties apply. I think it will save me £2,500