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No cooling off period for a rate switch?
JaA
Posts: 1 Newbie
Hi all
I recently switched my rate online with existing mortgage lender HSBC, I changed my mind the next day and called their mortgage team to discuss. They advised that when i ticked one of their boxes (didn't read it properly and yes i know i should have of course!) I had actually acknowledged that there would be no cooling off period and i would be committed to it for the entire 5 year fix period. They have since dug their heels in after investigating if they could do anything for me.
I think EU law states that there has to be a cooling off period at least 7 days for a mortgage or loan, but if that is the case, I wonder if they are within their rights not to offer one for a rate switch? I would have thought new contract = cooling off period.
Can anyone advise if we have the right to change our minds about a rate switch?
I recently switched my rate online with existing mortgage lender HSBC, I changed my mind the next day and called their mortgage team to discuss. They advised that when i ticked one of their boxes (didn't read it properly and yes i know i should have of course!) I had actually acknowledged that there would be no cooling off period and i would be committed to it for the entire 5 year fix period. They have since dug their heels in after investigating if they could do anything for me.
I think EU law states that there has to be a cooling off period at least 7 days for a mortgage or loan, but if that is the case, I wonder if they are within their rights not to offer one for a rate switch? I would have thought new contract = cooling off period.
Can anyone advise if we have the right to change our minds about a rate switch?
0
Comments
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There is a reflection period of 7 days. I am not sure where this goes with a product switch, but customers can accept the offer prior to those 7 days being up, which it sounds like you may have done by ticking the box - https://www.fca.org.uk/firms/mortgage-credit-directive/new-rules-first-charge-mortgage-lenders-administratorsI am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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That box means you have waived your cooling off period and asked that the new rate start immediately.
I don't see how you can now change your mind and want out the deal since you ticked a box saying you were happy not to have that as an option0
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