NatWest Redressing Poor Advice on Term

manselnott

I want to gauge your advice please.

NatWest have contacted me to see if there was any incorrect selling of the mortgage they did for me in 2012. They have concluded that there is a need to redress the fact that we weren’t offered an illustration of how what the terms would be for the mortgage to finish just before my wife’s 67th birthday (her SRA). Currently the mortgage will finish beyond her SRA.

They have admitted fault and they have made me a financial offer. From what it sounds, they are redressing the payment difference for me to make a lump sum payment to reduce my mortgage term.

This is where I need your advice.

It would appear that the payment difference has been calculated only on the 2 years I had that particular mortgage.

Question - would it be unreasonable for me to make a counter offer, for them to pay what is needed to currently get the term down to that level?

My argument is this - surely as they have admitted fault it has meant that ongoing re-mortgages have stuck to the same remaining term and if at the time of doing the NatWest mortgage, we may have been in a position economically to go for a shorter term, and subsequently ongoing mortgages would have followed on with that remaining term, Therefore to redress this properly they would need to pay what we need to lower the term.

haras_nosirrah

Things like this really annoy me. Why did you not go for a shorter term? Surely you knew your wife would retire at 67. Why when they offered to go to 69 did you not stop them and go... Wait a minute?

The likelyhood of them just knocking 2 yrs off your mortgage is slim to none. Maybe if you give them the capital payments for the 2 yrs and they waive the interest then that would be reasonable but you would need to give them the lump sum

BoGoF

Unreasonable and unrealistic.

Surely you realised yourselves it was going beyond your wife's SPA?

Would it have changed your mind if the illustration had been provided?

[Deleted User]

Given the dates I'm wondering if it was a non-advised sale in branch


These were also called 'informed choice'. Presumably they are saying you weren't given the relevant information to make an informed choice.



Their issue is presumably with a single sale where this wa picked up rather than systemic across all sales.



Your ability to get more than they offer will depend on how you processed your future mortgage renewals. If you did then yourself online it is called 'execution only' and you are effectively saying you are comfortable giving yourself advice and don't need any help.

This will be impossible to complain about as you would be complaining about yourself.

I'm pretty sure it even says to call to get advice if you want to change the term


Overall it would depend on how much of your mortgage renewal has been advised, informed choice, or execution only


Dp you know how it was done originally and on subsequent new deals?

getmore4less

Presumably this was a 2y fixed deal.

I think putting you into a position you would have been at the end of the 2 years on a shorter term is reasonable and quite generous if it included the capital element that you did not pay out for 2 years.

Claims beyond that are going to be hard to justify depending on how you chose your next deal, had you stayed on the follow on rate that would have been an easier claim.

one angle may be that if after the 2 years you would have qualified for a better rate due to a lower LTV there may be a claim for the difference in rate on the next deal.

manselnott

At the time I was going into a well paid job, so we were happy with the longer term as previously we had been on that same term, I intended to make lump sum payments to reduce the term. However I was not offered any example of the shorter term which back then may have been affordable. The subsequent job was short lived and economically we have been on that path since. In hindsight changing the term then may have been more affordable and subsequently further remortgaging would have followed that path.

manselnott

It may have as back then the repayment amount difference would have been not as great as it has been in subsequent years.

manselnott

All subsequent advice was informed face to face. Illustrations of a shorter term were given but we couldn’t afford to change due to job change and economic circumstances.

manselnott

That’s good advice but my LTV has been good.

manselnott

Thanks for the advice. All sounds logical and will probably take the offer.

haras_nosirrah

But if your mortgage had been on the shorter term then would the subsequent mortgages have been more difficult to afford when you were no longer in as lucrative a job