Mortgage lender didn't communicate change in terms

MarcMCFC1986

Hello

We have a Mortgage with HSBC. I had been keeping an eye on the monthly repayments on our mortgage renewal for about 6-9 months leading up to the end of our product to get an idea of how much our new repayments would be.

In our paperwork for the contract it says we can lock in a new deal 3 months before our existing deal ended, so 3 months before it ended I called London & Country Mortgage Brokers to get the ball rolling. The best deal they could find was £100 per month more than we are currently paying, but we had to have it all done by the end of the following day as L&C had been informed that the interest rates would be going up again. So, we rushed to get it all done and locked it in at £100 per month extra - which, really is a bit of blessing as if we'd left it much longer it would have gone up by about £350 per month. 

However, what L&C did tell us is that with HSBC you can now lock in a new deal 6 months before your current product ends. Now, if we had done that our mortgage would have gone down by about £130 per month, rather than increased by £100 per month. But, HSBC did not communicate this change in terms with us - and so we didn't know to contact them 6 months before! If we had known, we would be £230 a month better off than we are now - and with our son going into childcare in a few weeks time, that £230 would have been very helpful.

Our new deal has now started, but I'm wondering if there is any point in me going back to HSBC and querying why they didn't let us know about the 6 month option, or if it is now too late? We didn't really think about it until after we had done everything the broker told us to do as we were against the clock to get it all sorted before the interest rates went up again - but we do feel a bit cheated by HSBC.

MorningcoffeeIV

Are you sure that the change in terms applied to your mortgage? 

Don't trust L&C, of all people, to know about any change in terms to your specific mortgage. 

welly_59

if your contract states 3 months, what makes you think it would be 6 months? just what the brokerage stated?

if your contract states 3 months, and HSBC have not communicated otherwise, then it is 3 months.

Basically what i am saying is your terms and conditions are per your contract unless notified.

TheJP

Your terms didn't change, HSBC changed the terms for future products. The terms are the terms you sign at the time of signing. You haven't been cheated, just unlucky.

JMA74

HSBC changed this policy on 21st November.  When did you redo your mortgage? 

dunstonh

But, HSBC did not communicate this change in terms with us - and so we didn't know to contact them 6 months before! If we had known, we would be £230 a month better off than we are now - and with our son going into childcare in a few weeks time, that £230 would have been very helpful.

HSBC wouldnt communicate it to you in advance of it changing.   And it is not a change in the T&C on existing mortgages.  Its a change in their processes for new mortgages.

Our new deal has now started, but I'm wondering if there is any point in me going back to HSBC and querying why they didn't let us know about the 6 month option, or if it is now too late?

How would they let you know of a change that wasn't applicable to you at the time?

 but we do feel a bit cheated by HSBC.

You haven't been cheated as your existing mortgage terms haven't been changed.  Effectively, prior to 21st November, HSBC said they could buy a new mortgage deal if you were within 3 months. And after 21st November they said you could buy a deal if you were within 6 months.

You say you locked in 3 months before the deal.  So, that would put you in the period when 3 months was their process.   So, you have nothing to complain about or feel cheated about.

Also, if the mortgage deal hasn't changed over yet, then you may be able to cancel that deal and look at their newer ones. 

penners324

Why use L&C when you can do it directly?

MarcMCFC1986

I'm just repeating what L&C told me - "HSBC have changed their terms and you could have done this 6 months before your product ends, rather than waiting until 3 months before."

JMA74 said:

HSBC changed this policy on 21st November.  When did you redo your mortgage? 

We did it in September - but now I'm more confused as L&C told me in September that doing it 6 months (180 Days) in advance would have been possible, had we known.

dunstonh said:

But, HSBC did not communicate this change in terms with us - and so we didn't know to contact them 6 months before! If we had known, we would be £230 a month better off than we are now - and with our son going into childcare in a few weeks time, that £230 would have been very helpful.

HSBC wouldnt communicate it to you in advance of it changing.   And it is not a change in the T&C on existing mortgages.  Its a change in their processes for new mortgages.

This isn't what we were told by the broker - he said we could have done it 6 months in advance. 

Edi81

Write to HSBC for an explanation
as others have said lenders have changed their policies on allowing people to switch but for HSBC this happened after you had entered the 3 months. 

If you were switching now the earliest you could have switched would be when they changed policy. 

I don’t think HSBC have done anything wrong - you are just unlucky. 

MorningcoffeeIV

But it was L&C who told you that.

It's like being told how to solve quadratic equations by Jedward.

MarcMCFC1986

MorningcoffeeIV said:

But it was L&C who told you that.

It's like being told how to solve quadratic equations by Jedward.

I've always found them to be very good, tbf!