Mortgage company (Accord)suddenly moving us off fixed to standard variable

jjuliano

How can a mortgage company just cancel a fixed rate?
I have been paying off the mortgage in line with the contract. 
I received a letter to say that from 1st June they are moving me to standard variable rate (4.75%!).
The fixed rate was supposed to continue to 2024.
Surely they have booked the money at a lower rate when I remortgaged? 
I bet their T&C's allow them to do it but it does seem very ethical.
In practical terms this means that my repayments will shoot up from £450 pcm to £1100! 
I have managed my other creditors well and timed my debt to rely on the 2024 change. This will probably mean that I will not meet unsecured creditors commitments.

Help!

Anyone with a similar letter?

I can't believe that I'm the only person that they have written to today and would be prepared to join a Group Litigation (class action) with others to fight back!

Martin Lewis should take up our cause.

When is a fixed rate mortgage not fixed rate mortgage??!!??

The mortgage company seem to attract in customers and lure them on a fixed rate. They can't have it both ways? 

How can consumers rely on fixed rate contracts??

Just doesn't seem very fair. Heads they win, tails you lose.

Any experienced lawyers out there wanting a pro-bono promisory estoppel case??

Why is life never easy??

Thrugelmir

Perhaps the letter was sent in error. A phone call to Accord would seem to be a more productive use of your time. Clarify the position first. No need to make a drama, 

Edi81

Can you produce evidence stating your fixed rate is until 2024? 

Original letter from them, last mortgage statement would be your first thing to dig out. 

dimbo61

In the mean time read through all the paperwork from the mortgage lender.
Perhaps go on the website and check what New deals they have for existing customers.
Maybe another Fix or tracker deal IF they are correct and your fix does indeed finish on the 1st of June. 
Are you in arrears with your lender ?

ACG

Have you actually spoken to Accord? 

Jumping to class action could be a bit premature. 
Maybe also speak to your broker. I tell all of our customers that I am not just around for the mortgage but if they have any questions after completion takes place. That means 2 weeks, 2 years or 20 years. 

K_S

jjuliano said:

How can a mortgage company just cancel a fixed rate?
I have been paying off the mortgage in line with the contract. 
I received a letter to say that from 1st June they are moving me to standard variable rate (4.75%!).
The fixed rate was supposed to continue to 2024.
Surely they have booked the money at a lower rate when I remortgaged? 
I bet their T&C's allow them to do it but it does seem very ethical.
In practical terms this means that my repayments will shoot up from £450 pcm to £1100! 
I have managed my other creditors well and timed my debt to rely on the 2024 change. This will probably mean that I will not meet unsecured creditors commitments.

@jjuliano I've not heard of this happen tbh. Your mortgage offer (from when you took out the remortgage) should clearly layout the date to which the fixed term is valid. Section 4 of the Accord offer should show this date, like the one below says 30 June 2026 -

 

Are you talking about a product-switch/rate-switch/product-transfer that you recently applied for, went to offer and then got cancelled? Do you have any arrears or ongoing issues with the Accord mortgage?

Accord is a broker only lender, so as ACG said, it might be worth getting in touch with your broker who arranged the mortgage to try and get to the bottom of this.