Unfair early redemption

John_

Missu said:

Thank you to all that replied. I've checked the paperwork for the deal I am on ( it was a change in rate remortgage with the same lender). The only detail it gives about early redemption is the breakdown of %payable in each year.
If I don't get anywhere with a complaint ( which to be clear is about the misinformation given when I rang for advice) then I will wait until July. 
The other part of my complaint that no-one has commented on yet, is that the lender is using the balance from July 2019 to calculate the early redemption charge. Thoughts please only on this point?  I'm happy with what I'm doing on the timings etc.

That’s pretty normal.

minimike2

You need to post your exact wording.
The part about the last three months is likely to refer to swapping to a new rate with your lender, not closing the mortgage account. "Re-Mortgaging" is not when you switch rates / transfer products with your existing lender, it is only where you move the mortgage away to a new lender and your existing mortgage is closed. Your first post seems to be crossing the wires between the two things.  The terms and conditions for this are very different to doing a change of rate, for example many lenders allow a change of rate within three months of the end date, but for full redemption that is often 30 days of the end date, or no leeway at all before the end date.

In regards of what you were told on the phone, none of us were listening, so your recollection of the call may or may not be reflective of this, but if you were given wrong information then the most you can hope for is a goodwill gesture, as it doesn't override the terms of your mortgage.

[Deleted User]

@john really? I've made overpayments so the balance is significantly lower now. I thought the fees were to compensate for loss of interest?

[Deleted User]

@ minimike2 thanks but I'm happy with the issue of the early redemption. I don't need to post exact wording as I've detailed here exactly what it says. I'm now asking about the way the lender is calculating the fee if you have anything to add to that?

minimike2

Missu said:

@ minimike2 thanks but I'm happy with the issue of the early redemption. I don't need to post exact wording as I've detailed here exactly what it says. I'm now asking about the way the lender is calculating the fee if you have anything to add to that?

No, you haven't. Unless the wording is posted, exactly as per your offer (like another poster has already suggested), along with the relevant section of the terms and conditions, then I can't possibly begin to be able to add anything more. Everything is dependant on that wording. 

csgohan4

minimike2 said:

Missu said:

@ minimike2 thanks but I'm happy with the issue of the early redemption. I don't need to post exact wording as I've detailed here exactly what it says. I'm now asking about the way the lender is calculating the fee if you have anything to add to that?

No, you haven't. Unless the wording is posted, exactly as per your offer (like another poster has already suggested), along with the relevant section of the terms and conditions, then I can't possibly begin to be able to add anything more. Everything is dependant on that wording. 

Agreed, my mortgage statement states the ERC when it ends and how much the amount is each year. You have not provided anything, which suggests you have not read them in detail  and your complaint may fail 

Regarding phone calls, if it's not written down it's not done

davidmcn

Missu said:

I don't need to post exact wording as I've detailed here exactly what it says. I'm now asking about the way the lender is calculating the fee if you have anything to add to that?

You really haven't detailed exactly what it says, you've merely paraphrased it. Let's see whatever it is you're looking at, and we can maybe help more.

[Deleted User]

It's ok, I've moved on from that point. As I've said a few times (see above) , my complaint is about the phone call giving me misinformation and that they are calculating the early redemption on a balance from a year ago.

ACG

Missu said:

@john really? I've made overpayments so the balance is significantly lower now. I thought the fees were to compensate for loss of interest?

With most mortgages you are allowed to overpay by 10% per year (that can be calendar year or anniversary, it varies from lender to lender). The anniversary came, you have overpaid and potentially still can upto the 10%, anything else will incur the ERC. That is not uncommon.

[Deleted User]

Missu said:

It's ok, I've moved on from that point. As I've said a few times (see above) , my complaint is about the phone call giving me misinformation and that they are calculating the early redemption on a balance from a year ago.

What does the offer letter or Key Facts Illustration say about the early repayment charges?   Thats what they will refer to.   Given timings there is a good chance your mortgage came in after cooling off periods came in to mortgages and if you then accept the funds after that point you are deemed to have accepted the terms associated with it. 

I used to work in complaints for Halifax and Lloyds.  It will simply come down to what was in the Key Facts Illustration or Offer documents that you agreed to.  

If you have an ESIS offer then it will be in section 8
If its a KFI offer then it will be in section 10 i think