Miss sold mortgage from Barclays

aflack

Does anyone have any helpful advice on what my rights are here:

we are moving to a buy yo let in our current property that we need to vacate due to the terms of the mortgage. We gave notice to out tenant in our other property which had to be six months. they moved out within 2 so we can move from london to the north east.

We were continually reassured all is good as we started the process as soon as possible due to delays with a our last mortgage with Barclays. We started the process 6 months ago and were informed of the dates in writing would not occur any early repayment charges, Now Barclays are telling me the offer expires in 2 weeks on the 30th but out early repayment charges expire on the 1st. So with 2 months notice we have the options to either pay 8k in fines or it all falls through.

now, if it falls through with under 2 weeks notice ill have personal costs that i have committed to. Also my current mortgage rate expires costing me around 300 extra pm. I cannot legally rent the property and i have kicked our tenant out of our other property.

i was looking for advice, but Barclays are simply saying they will investigate it and get back to me in a shocking 40 days. no one else can advise.

from a financial point of view (plus realistically as i guess they have lawyers to crush me) where do i stand on this?

Thrugelmir

Reapply for the mortgage. 

aflack

Not very helpful!

To remortgage we will be paying an extra 300pm in interest due to the term ending whilst we find someone else, exclusion all of the costs of no longer moving with 1-2 weeks notice.

ACG

Im confused. I read your post and I have no idea what you are trying to do.  

aoleks

ACG said:

Im confused. I read your post and I have no idea what you are trying to do.  

Same here, this post doesn’t make sense at all…

MWT

It isn't easy to follow, but it sounds like you are redeeming your existing BTL mortgage and replacing it with a new residential mortgage so you can move in and live there yourself.

You got confirmation that if you terminated your existing BTL mortgage on the 1st October you would not pay any ERC, but the mortgage offer you received expires before that date.

Does that sound right?

I would guess you are not using a broker or you wouldn't be in this position, but if you are using a broker then they should be finding a solution for you as it should have been clear from the start that your offer would expire too soon for the 1st October target...

I also doubt that you've been dealing with the bank on an advised basis regarding the BTL mortgage so odds are this was on you to spot the date mismatch with the residential offer unfortunately.

... but there is a lot of guess work in here so please confirm the facts and it will help others to help you...

Thrugelmir

aflack said:

Not very helpful!

To remortgage we will be paying an extra 300pm in interest due to the term ending whilst we find someone else, exclusion all of the costs of no longer moving with 1-2 weeks notice.

Hopefully you had a contigency in your budget for such events. £300 isn't much in the general scheme of things. 

dunstonh

So with 2 months notice we have the options to either pay 8k in fines or it all falls through.

ERCs are not fines.  They are a contractual event.

now, if it falls through with under 2 weeks notice ill have personal costs that i have committed to. Also my current mortgage rate expires costing me around 300 extra pm. I cannot legally rent the property and i have kicked our tenant out of our other property.

Such is the risk of running a property business.   

However, rates have not changed to a level that makes a £300 a month difference likely.  Where are you getting that figure from?

i was looking for advice, but Barclays are simply saying they will investigate it and get back to me in a shocking 40 days. no one else can advise.

What does your mortgage adviser say? 
it sounds like Barclays are treating you as a complaint and that puts it through a formal process.   Once you are in a complaint situation, the branch and other staff cannot get involved apart from routine service.

from a financial point of view (plus realistically as i guess they have lawyers to crush me) where do i stand on this?

It's unclear from your post but it sounds like your offer letter expires the day before the ERC period ends.     If that is the case, then the easiest thing to do is request a new offer letter or get a dispensation from Barclays to extend it a further day.   If you have bought a mortgage deal that is no longer available then you just pick a new one and they will issue a new offer letter on that basis.

If you used a mortgage broker, all of this would be done for you.  If you are doing this without an adviser, then you take on the responsibility for knowing what you are doing.   Barclays will be taking instructions from you or your broker.  If you dont give the right instructions, you are responsible for that.