Building Society prematurely ending mortgage

Cumbrianchap

dunstonh said:

Can an existing mortgage (in place since 2016) be taken away like this?

Technically, it's not being taken away.  The ability to offset is being removed but the mortgage and the mortgage terms remain the same.

We think they are trying to scare us into revising our mortgage to suit their management plan. There is no "as part of our ability under condition ... of our mortgage agreement with you", etc suggesting their entitlement to do this.

Offset mortgages are expensive to operate and have become less popular as more and more people went fixed rate rather than use offset.   There comes a point where a product is no longer viable to offer.

They have to meet the credit terms agreed but the offset is bolt on functionality and doesn't have the same requirement to be continuously offered.

But it is being taken away. We have the option to switch to another product, but it will be a new (replacement) mortgage.

The contract runs to 2031. The offset isn't a bolt-on. It's an integral part of the agreement with a requirement to have an offset savings account as part of the conditions of the mortgage. Other lenders still offer this sort of product. I don't qualify due to my age.

I understand your perspective is but don't agree with your conclusion.

Cumbrianchap

HobgoblinBT said:

The lender can change their terms of the loan if your agreement allows them to do so.  

There is nothing in their T&C's that state they can vary or curtail the mortgage unless we default or fail to comply with the requirements of the mortgage. We have done neither.