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Coop Bank wants to shift mortgage to Britannia!

Hi all, I just rang to start applying to borrow extra on our Coop mortgage, only to be told - no advance notice - that any future variations on a mortgage, inc. extra borrowing, will result in the *entire* mortgage being transferred to Britannia!

I know Coop owns Britannia, but it would have been nice to get a letter warning mortgage holders of this potential change. What does it mean? The guy on the phone said the 'only change' would be that overpayments would no longer go into a separate fund but would reduce the capital immediately. Fine, but might there be other hidden changes? Having this sprung on me over the phone from a call centre guy is bad practice.

I can't find anything online about this particular change, so wondered whether anyone else has had the same experience. I think it's probably OK for me to go ahead, but I can't imagine this transfer to Britannia would be totally innocent otherwise why would Coop, who own Britannia, even bother?

Thoughts welcome.

Thank you.

Comments

  • [Deleted User]
    [Deleted User] Posts: 35,383 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    There wouldn't be any hidden changes. You'd be told about them in a Notice of Variation, but all key terms would remain the same in any case.
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