Coventry Building Society - inflexible on charges

Anyone else find the Coventry uncaring at this time? My daughter is furloughed and her pay is 20% down; my son in law has had his pay cut 25% . Their current mortgage is with the Coventry . They want to move house but Coventry's new rules say they have to put up 15% deposit (previous to Covid it was 10%) - how can you do that when your pay has been cut?  So they have looked around and found in Nationwide a 10% deposit arrangement but guess what the Coventry are going to charge them £3000 for leaving them 9 months early and not remortgaging with them!  Why on earth do Coventry need to be so difficult at this time? My daughter would happily have stayed with Coventry but finding 15% is impossible .

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,242 Forumite
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    They're not being difficult. Just asking your daughter to abide by her agreement.

    Risk has increased so much that lenders simply can't afford to throw away payments or risk negative equity.
  • Browntoa
    Browntoa Posts: 49,299 Forumite
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    It's called terms and conditions , it's what they agreed to.

    I assume that they are in a fixed term mortgage hence the fees
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  • dunstonh
    dunstonh Posts: 116,333 Forumite
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    They want to move house but Coventry's new rules say they have to put up 15% deposit (previous to Covid it was 10%) - how can you do that when your pay has been cut?

    Lenders are free to set the terms and the levels of risk they were wiling to take.   Consumers are free to accept them or go elsewhere.

    When property values are rising, the lenders tend allow smaller deposits. When house prices are falling or expected to fall, they will increase the size of the deposit needed.

    Why on earth do Coventry need to be so difficult at this time? 

    Why should other borrowers pay for your daughter to break the agreed terms?

    ERCs exist because the money used to fund the mortgage is invested and there will be costs suffered by the lender for those that leave early.    All they are doing is getting the borrower who wants to break the terms to pay for it instead of getting all the other customers paying for it.    

    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
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