Fixed term mortgage not being honoured by bank

jaymisawilliama

I renewed my rate for a 2 year fixed rate with Bank of Ireland on my mortgage.
The new interest rate started 01/07/21 however BOI are stating my deal ends at the end of March, three months short. They are saying that the term is from start of introduction of product not when they change the rate.
I paid a £1000 fee for a fixed rate for two years, them not applying that rate seems wrong to me. I certainly didn’t apply for a 21 month fixed rate.
Any advice as they are not budging.

CSI_Yorkshire

Fixed rate mortgages are normally to a specific end date.  Your rate was likely "Fixed until 31 March 2024" if you look at the documentation.

I am not aware of any fixed mortgage that is "2 years from the day you switch".

My advice is that you read the documents that describe what you actually signed up for.

MWT

jaymisawilliama said:
Any advice as they are not budging.

They will not budge because they are most likely right.

The details will be in the documents you signed at the time, so check there, but it is normal for them to have fixed dates for the product you pick, not dates that run from when you start using the product.

kingstreet

What does your illustration and/or your contract variation or offer say?

jaymisawilliama

Thanks, makes sense I guess. I would argue that the product title is misleading. Rather than calling it a two year fixed rate it should be fixed rate until 30/4/25.
As everything was completed online I don't have a paper copy of the terms to hand, I’ll update once I’ve received them as I’ve requested.

CSI_Yorkshire

Here's an example from the Bank of Ireland today.

Notice that third column - "End Date".

So actually, if you started the two year fix today (28 July 2023) it would last until 31 October 2025 - quite a bit more than two years. 

kingstreet

FWIW if a lender's funding model is internal, ie depositor funds, you can easily offer number of months from completion, like Nationwide.

If you use wholesale funding and securitisation, you ideally want all your mortgages in a particular tranche of lending to end on the same date.

jaymisawilliama

CSI_Yorkshire said:

Here's an example from the Bank of Ireland today.

Notice that third column - "End Date".

So actually, if you started the two year fix today (28 July 2023) it would last until 31 October 2025 - quite a bit more than two years. 

Thanks, understood. As far as i see it the product is not correctly defined. If you went to Tesco, bought bananas buy one get one free then at the checkout they chopped the end off one claiming the offer was only if you bought them from the first day of the promotion there would be hell up and trading standards involved.
Maybe a bad analogy but I hope you see my point.

CSI_Yorkshire

jaymisawilliama said:

CSI_Yorkshire said:

Here's an example from the Bank of Ireland today.

Notice that third column - "End Date".

So actually, if you started the two year fix today (28 July 2023) it would last until 31 October 2025 - quite a bit more than two years. 

Thanks, understood. As far as i see it the product is not correctly defined. If you went to Tesco, bought bananas buy one get one free then at the checkout they chopped the end off one claiming the offer was only if you bought them from the first day of the promotion there would be hell up and trading standards involved.
Maybe a bad analogy but I hope you see my point.

I get where you're coming from - it's a common assumption and you're not the first person here asking the question - which is why the lenders are very careful to actually put the end date on the documents that you sign rather than just the title of the offer.

kingstreet

The question, really, is who told you it was a two year fixed rate and what evidence do you have? If the lender has put something in writing or there is a recording of a lender representative saying two year fixed rate you may have grounds for complaint.

FWIW again, our suitability letter issued with the final illustration and copy application says "XYX Ltd two year fixed rate (until 30/09/2025)" or "fixed for two years from completion."

Altior

That's a hefty fee for a short fix. Judging by the numbers on the posted grid, over 2 years the fee option would only be advantageous with a substantial capital balance.