House Sold...Interest Only Mortgage wirh Santander

Catsacor

Mustbeananswer?? said:

frugalmacdugal said:

Hi,

Mustbeananswer?? said:
All the time Santander are badgering me for their money......but in order to get it to them I have to incur an £1800 charge to do it.This has got Ombudsman written all over it ....or is this a common occcurence ??

why, what does you mortgage T&Cs say regarding ERC?

The last thing I look at when I get a load of cash is how Im going to settle it in 14 years bud.Im  good for the cash but will fight it all the way...on a matter of principle regarding the advice I was given.

That's not carrying out sensible due diligence, it should be one of the first things to do.
Fail to prepare and you prepare to fail.

Mstty

Mustbeananswer?? said:

silvercar said:

You could try asking Santander to forego some of the ERC, you could tell them that without them doing so, you will have to take your house off the market and start again nearer to the end date and see what they say.

at the end of the day it’s your choice whether to sell now or wait to see what the next few months brings.

Best comment yet...that would be the fairest thing to do.Ive found a buyer in a market that is in freefall.And they clobber me for 1800 over a couple of months.Thanks for understanding Silvercar !!

So you want to attempt to blackmail a financial institution by saying if they don't give you a discount of the ERC you may purposely delay selling the house so they get nothing.

Good luck with that.

silvercar

Mstty said:

Mustbeananswer?? said:

silvercar said:

You could try asking Santander to forego some of the ERC, you could tell them that without them doing so, you will have to take your house off the market and start again nearer to the end date and see what they say.

at the end of the day it’s your choice whether to sell now or wait to see what the next few months brings.

Best comment yet...that would be the fairest thing to do.Ive found a buyer in a market that is in freefall.And they clobber me for 1800 over a couple of months.Thanks for understanding Silvercar !!

So you want to attempt to blackmail a financial institution by saying if they don't give you a discount of the ERC you may purposely delay selling the house so they get nothing.

Good luck with that.

That's unfair, OP can choose when to sell his property. It isn't for a lender to dictate when a property is to be sold. It isn't blackmail, it is a question. Santander has the option of refusing to offer an ERC discount, just as OP can choose not to sell until the end of the ERC period. It so happens it may choose both parties to allow an earlier settlement. The ball is clearly in Santander's court, so I don't see how it is blackmail. 

Mstty

silvercar said:

Mstty said:

Mustbeananswer?? said:

silvercar said:

You could try asking Santander to forego some of the ERC, you could tell them that without them doing so, you will have to take your house off the market and start again nearer to the end date and see what they say.

at the end of the day it’s your choice whether to sell now or wait to see what the next few months brings.

Best comment yet...that would be the fairest thing to do.Ive found a buyer in a market that is in freefall.And they clobber me for 1800 over a couple of months.Thanks for understanding Silvercar !!

So you want to attempt to blackmail a financial institution by saying if they don't give you a discount of the ERC you may purposely delay selling the house so they get nothing.

Good luck with that.

That's unfair, OP can choose when to sell his property. It isn't for a lender to dictate when a property is to be sold. It isn't blackmail, it is a question. Santander has the option of refusing to offer an ERC discount, just as OP can choose not to sell until the end of the ERC period. It so happens it may choose both parties to allow an earlier settlement. The ball is clearly in Santander's court, so I don't see how it is blackmail. 

No the inference was holding the financial institution to Ransome. Etiher reduce the ERC or I won't sell until the ERC is £0

Bad form for the MSE board I believe.

Mustbeananswer??

Thanks Silvercar and GDB2222...I will talk to the Complaints Department on Monday.I have their number.It was always my intention to sell the house at the end of the term.I dont mind having a scrap with a multi billion Banking Company..but wouldnt want to let anyone down who has purchased my property in good faith and invested Solicitors Fees etc.Its the way they strongly  suggested that I immediately sell the house 4 months ago (incurring the ERC if it sold before the date)..and the written proof of them saying by now I should have my house on the market!!(See earlier post). This all seems contrived to rob me of £1800.Why couldnt they wait till the ERC dissolves and then suggest I put it on the market??I can accept in being remiss in not spotting that the ERC wasnt on a sliding scale however...but that was a genuine mistake !!

BlueVeranda

I think it may be more unusual for the ERC to be on a sliding scale than for it to be a fixed amount. When we last moved we ended up porting our existing (repayment) mortgage and taking out a separate one on the new property because it didn't financially make sense to pay off the ERC on the existing mortgage to combine them even though it was close to the end of its fixed term.

Whether Santander have misadvised you I cannot comment but there is surely no issue in ringing to ask for clarification.

theartfullodger

Mstty said:

silvercar said:

Mstty said:

Mustbeananswer?? said:

silvercar said:

You could try asking Santander to forego some of the ERC, you could tell them that without them doing so, you will have to take your house off the market and start again nearer to the end date and see what they say.

at the end of the day it’s your choice whether to sell now or wait to see what the next few months brings.

Best comment yet...that would be the fairest thing to do.Ive found a buyer in a market that is in freefall.And they clobber me for 1800 over a couple of months.Thanks for understanding Silvercar !!

So you want to attempt to blackmail a financial institution by saying if they don't give you a discount of the ERC you may purposely delay selling the house so they get nothing.

Good luck with that.

That's unfair, OP can choose when to sell his property. It isn't for a lender to dictate when a property is to be sold. It isn't blackmail, it is a question. Santander has the option of refusing to offer an ERC discount, just as OP can choose not to sell until the end of the ERC period. It so happens it may choose both parties to allow an earlier settlement. The ball is clearly in Santander's court, so I don't see how it is blackmail. 

No the inference was holding the financial institution to Ransome. Etiher reduce the ERC or I won't sell until the ERC is £0

Bad form for the MSE board I believe.

Blimey, lawnmower to be used on lender? 

InMyDreams

Mustbeananswer?? said:

Its the way they strongly  suggested that I immediately sell the house 4 months ago (incurring the ERC if it sold before the date)..and the written proof of them saying by now I should have my house on the market!!

But it's *impossible to time a sale so accurately. If they advised you to wait until after your deal ended, you could then have been stuck paying much higher payments for months waiting until your house had sold, upset because they had told you to wait with prices going down to boot.

*Maybe not impossible. Seems to me, you are in a perfect position. You have an offer on your house which is otherwise proceeding well. There is nothing stopping you asking your buyer to wait. Either they will or they won't, but they can't force you to agree to a completion date earlier than you are prepared to proceed. You have all the cards.

To be honest, £1,800 seems like a small price to pay to get your sale over the line and the money in your bank. I think the 'advice' (if that is what is was) was sound. Any delay could end up being far more costly.

Mustbeananswer??

BlueVeranda said:

I think it may be more unusual for the ERC to be on a sliding scale than for it to be a fixed amount. When we last moved we ended up porting our existing (repayment) mortgage and taking out a separate one on the new property because it didn't financially make sense to pay off the ERC on the existing mortgage to combine them even though it was close to the end of its fixed term.

Whether Santander have misadvised you I cannot comment but there is surely no issue in ringing to ask for clarification.

Thanks love..I have thought of porting the Mortgage and borrowing some more money(which I dont need) from Santander...but that would leave less money for the kids when I pass(Im 65).Thanks for your comments 

Mustbeananswer??

InMyDreams said:

Mustbeananswer?? said:

Its the way they strongly  suggested that I immediately sell the house 4 months ago (incurring the ERC if it sold before the date)..and the written proof of them saying by now I should have my house on the market!!

But it's *impossible to time a sale so accurately. If they advised you to wait until after your deal ended, you could then have been stuck paying much higher payments for months waiting until your house had sold, upset because they had told you to wait with prices going down to boot.

*Maybe not impossible. Seems to me, you are in a perfect position. You have an offer on your house which is otherwise proceeding well. There is nothing stopping you asking your buyer to wait. Either they will or they won't, but they can't force you to agree to a completion date earlier than you are prepared to proceed. You have all the cards.

To be honest, £1,800 seems like a small price to pay to get your sale over the line and the money in your bank. I think the 'advice' (if that is what is was) was sound. Any delay could end up being far more costly.

You write a good post ...you must be a very rich to think £1800 is a small price to pay.In 14 years I have never defaulted on a payment and surely they have had their profit already from the payments I have made??It is a licence to print money for them.I wonder how many little old ladies have been caught with this scam when downsizing???The encouragement to sell before my term completes was to take £1800 out of my sale price in cold blood.it cant be any other way ??