Missold Mortgage

Annasharl

I'm after some advice regarding a possible missold mortgage.

Back at the end of 2008 we were on a fixed rate 2yr mortgage with a reputable building society. The building society wrote to us with a new"exclusive" for "valued customers" offer to swap our mortgage for a better lower rate one which we could fix for up to 10 years. In doing so they would waive the early redemption fee for our then current mortgage. Times were vulnerable with the recession hitting and we thought it would be a good idea given the previous recession of the 1980's had caused interest rates to go sky high. So we did it and jumped onto a 4.19% fixed rate for 10 years, thinking that this wold give us peace of mind.
Of course what happened was the opposite of what we expected and the interest rates fell well below 4% and so we were locked into a mortgage which we were paying over the odds for during the last 10 years.
So my question is this. Did the building society know that interest rates were going to fall sharply and knowingly lock us into a deal which they knew was in their interest and not ours? When we questioned them on this earlier this year, they denied all knowledge of the original letter which we found just a few days ago amongst some old paperwork.

All advice welcomed. Thank you

[Deleted User]

Did the building society know the whole worldwide economy was going to crash but not tell anyone?

Is this a serious question?

Annasharl

Yes very serious. Although that isn't the question I was asking.

gaz_moose

suggesting they could predict what was going to happen both long and short term is pretty wild. im guessing they offered people the 10 year deal as it was a know quantity and thus a steady income. it could have gone the other way and they could have been the ones bent over the barrel.

kingstreet

Annasharl wrote: »

Did the building society know that interest rates were going to fall sharply and knowingly lock us into a deal which they knew was in their interest and not ours?

No. What happened was unprecedented.

You were offered the best rate the lender could arrange in the swap market at the time.

However, you decided you wanted to trade the lowest rate for the longest possible period of payment certainty, ten years, and that was your decision alone.

You have buyer remorse. It's understandable, but you could quite easily have found rates went back up again very quickly and you would have been quids-in.

No blame for anyone in such circumstances.

Thrugelmir

In opting for a fixed rate product there's always the possibility that rates might fall. Likewise you'd be up in arms if rates actually rose and the lender decided to rip up your contract.

Either way the lender isn't making anymore or losing money from the transcation. As they would have obtained a tranche of fixed rate funds themselves to fund the offer. Building Societies aren't profitable enough to risk more commercial style lending practices.

SpiderLegs

Annasharl wrote: »

So my question is this. Did the building society know that interest rates were going to fall sharply and knowingly lock us into a deal which they knew was in their interest and not ours?

You my friend, are having a giraffe.

TadleyBaggie

Annasharl wrote: »

Yes very serious. Although that isn't the question I was asking.

Yes it was...

So my question is this. Did the building society know that interest rates were going to fall sharply

csgohan4

Write a letter that you were mis sold this mortgage... Address it to your self.


Buying a house has risks, the value and indeed the mortgage rates vary

sal_III

I doubt you would have been posting this if the rate went in the other direction in the last 10 years...

You wanted peace of mind - you got it. You knew exactly how much your mortgage will cost for the next 10 years.

SonOf

So we did it and jumped onto a 4.19% fixed rate for 10 years, thinking that this wold give us peace of mind.

And that is exactly what you got. Peace of mind knowing that whatever happened, you would pay the same amount on the mortgage for 10 years.

Did the building society know that interest rates were going to fall sharply and knowingly lock us into a deal which they knew was in their interest and not ours?

Yes they knew. in the same way they know this weekend's lottery numbers and the winner of the 3.30 at newmarket.

All advice welcomed.

You are being daft. You got exactly what you wanted. No wrongdoing here.