Advice Required - Mortgage Lender Error

Beckyd_90

We have recently moved home and told the only way to avoid a hefty early repayment fee would be to port our existing mortgage and add the remainder which we agreed on a variable rate (mortgage agreed in December). We were since told due to the existing mortgage being help to buy we could not port this but as the scheme had ended and we couldn't switch to another help to buy the early repayment fee would be waivered.

Fast forward to when we moved home, as you know the BBR has increased significantly and we were advised not to switch to fixed before completion as this could risk the move not going ahead.

Once we were in we tried to change our rate to fixed as were concerned the BBR would increase more... now here is where it gets interesting

Our lender had not ported the mortgage as they should but instead has provided a new mortgage with the full value of the home at the increased variable rate (which is not an issue as we expected this) but we also have a second mortgage for the early repayment fees plus a little extra we are not sure what this is. They have said we cannot switch to a fixed rate as have 2 mortgages (we shouldn't!), they have admitted fault but do not seem to be in any hurry to resolve this, in the meantime we are losing a lot of money as the rates are increasing and we cannot switch to another lender until this issue is resolved. 

At the time they admitted fault the fixed rate with themselves was 4.6% and is now at 5.5% and undoubtedly continuing to increase, for context this is costing us around £200 per month for each percentage increase.

As you can imagine it is now causing a lot of stress

Any advice on what we should do please? I feel the only ones losing from this situation is ourselves 

K_S

@beckd_90 Sorry to hear about the trouble you've been having but I'm not entirely clear on the details or why it was ported to an SVR product.

When you say you have 2 mortgages, do you mean two mortgage parts? The bigger one being the original mortgage+additional borrowing (these are usually two different parts) on the SVR and the smaller part being the ERC amount, also on SVR. Is that right?

Were you not able to fix the larger part by itself? And if the lender agreed to waive the ERC, why did they create a new mortgage part for it?

With respect to the issue, I hope you have raised a formal complaint so the clock gets ticking. If you haven't please do so asap as often it's the only way to get some attention from someone who can look at the issue and do something about it.

Beckyd_90 said:

We have recently moved home and told the only way to avoid a hefty early repayment fee would be to port our existing mortgage and add the remainder which we agreed on a variable rate (mortgage agreed in December). We were since told due to the existing mortgage being help to buy we could not port this but as the scheme had ended and we couldn't switch to another help to buy the early repayment fee would be waivered.

Fast forward to when we moved home, as you know the BBR has increased significantly and we were advised not to switch to fixed before completion as this could risk the move not going ahead.

Once we were in we tried to change our rate to fixed as were concerned the BBR would increase more... now here is where it gets interesting

Our lender had not ported the mortgage as they should but instead has provided a new mortgage with the full value of the home at the increased variable rate (which is not an issue as we expected this) but we also have a second mortgage for the early repayment fees plus a little extra we are not sure what this is. They have said we cannot switch to a fixed rate as have 2 mortgages (we shouldn't!), they have admitted fault but do not seem to be in any hurry to resolve this, in the meantime we are losing a lot of money as the rates are increasing and we cannot switch to another lender until this issue is resolved. 

At the time they admitted fault the fixed rate with themselves was 4.6% and is now at 5.5% and undoubtedly continuing to increase, for context this is costing us around £200 per month for each percentage increase.

As you can imagine it is now causing a lot of stress

Any advice on what we should do please? I feel the only ones losing from this situation is ourselves 

Beckyd_90

Hi, thanks for your reply, in truth, I am not sure what they have done, they said we have 2 mortgages 1 for the larger amount (which we have received the paperwork for and what we are aware of), and a seperate one for the smaller amount, we have never received any information about this one and was a surprise to us when discussed via telephone.

The lender advised us to go to our broker, which we did, and they have produced the paper work to say it is the lenders error, which they have now admitted fault to, however, will not switch us to a fixed rate until it has been resolved on their system. Other lenders will not allow us to switch to them until this is resolved either. We have been chasing via our broker as with the lender is very difficult to speak to anyone. How would I go about raising a formal complaint please? 

Thanks in advance

K_S

@beckyd_90 What do you see when you login to your online banking and go to the mortgage account? If you can't login to your mortgage, what was shown on the porting illustration from the broker or the porting mortgage offer? It should show how many parts there are to the mortgage, something like this -


Complaint - For the lender, just google something like "how to make a complaint Nationwide mortgage" for whichever lender you're with, and that should point you to the process to make a formal complaint.

Beckyd_90 said:

Hi, thanks for your reply, in truth, I am not sure what they have done, they said we have 2 mortgages 1 for the larger amount (which we have received the paperwork for and what we are aware of), and a seperate one for the smaller amount, we have never received any information about this one and was a surprise to us when discussed via telephone.

The lender advised us to go to our broker, which we did, and they have produced the paper work to say it is the lenders error, which they have now admitted fault to, however, will not switch us to a fixed rate until it has been resolved on their system. Other lenders will not allow us to switch to them until this is resolved either. We have been chasing via our broker as with the lender is very difficult to speak to anyone. How would I go about raising a formal complaint please? 

Thanks in advance

Beckyd_90

Thank you, yes there definitely isn't anything like that on our paperwork, as we do not have current accounts with this lender we cannot see much on online banking in the way of our mortgage, we have tried a few times to get this set up with no avail.

It's just the one line for the mortgage we were aware of, and our paperwork corresponds to. We have checked this detail with our broker who has stated similar to the above if it was ported and split (ours definitely isn't). The lender has admitted the 2nd one shouldn't be there and has been created in error. They just seem to be dragging their heels at sorting it so the rates continue to increase for our payments.

I believe other lenders will not let us switch as the total value of our mortgage (plus the 2nd mortgage created in error) puts us above our affordability limit (however this has not been confirmed)

Thank you again for your help, I will try this to see if we can get a resolution without it costing us too much more (and to sleep a little better!)