Help please re GMAC sold my mortgage...

Carrera74

A few months after I remortgaged with GMAC I received a letter from them saying that they were selling my mortgage to Advantage. In the letter it said that in accordance with the terms of the mortgage there would be no change to the current terms and conditions so I was happy but....

I have just got home and received a mortgage statement for the last 12 months which states on it that early repayment charges are in force until November 2031 which is when the mortgage will be paid in full. It says that if I leave before this date I will be charged nearly £6000!!!

On the keyfacts I received from my broker it had a breakdown of early repayment charges and I knew to ask about these after being stung previously. It states on there that if I leave within the fixed period time (2 years) I would be charged the silly amount but if I leave after the fixed tie in period I would still be charged but only £700.

Can Advantage change the terms of my mortgage even though GMAC said they wouldn't? Does the keyfacts prove that they shouldn't be charging me this much or am I destined to always be in debt

Any help or advice is much appreciated. I was having a great day til I got home and opened the post!

dunstonh

They cannot extend the ERC. It may be you misreading it or a typo.

Dan_Collins_2

As far as I am aware they cannot do this. They are allowed to sell on your mortgage. I am sure that this is a mistake. Double check your mortgage offer and contact Advantage.

Carrera74

It definately says it in black and white - I've read it many times

Is the Keyfacts document the mortgage offer? How dumb do I sound!

homer_j_3

This will be a typo or system error. Your offer is the document that you rely upon. Whatever it says in there is what you should rely upon.

Give them a call and check - it could be an admin error that they are aware of or not. Do not panic, just call them and question and I am sure it will be put right.

Tiddler_2

I'm guessing here - but I think that the statement is technically correct in that an Early Repayment Charge IS payable for the full term of the mortgage, but they just haven't broken it down correctly.

They have quoted either the maximum fee payable or the current fee.

The better explanation is that it is the £6000 figure until the end of the 2 year deal, and then for the remainder of the mortgage term (i.e next 23 years) it is 1 months interest or maybe 1% of the mortgage balance (these can often be avoided by giving 1 months notice to the lender, in writing).

Advantage cannot change your mortgage terms.

Hope you understand what I'm getting at!!

Carrera74

Tiddler wrote: »

I'm guessing here - but I think that the statement is technically correct in that an Early Repayment Charge IS payable for the full term of the mortgage, but they just haven't broken it down correctly.

They have quoted either the maximum fee payable or the current fee.

The better explanation is that it is the £6000 figure until the end of the 2 year deal, and then for the remainder of the mortgage term (i.e next 23 years) it is 1 months interest or maybe 1% of the mortgage balance (these can often be avoided by giving 1 months notice to the lender, in writing).

Advantage cannot change your mortgage terms.

Hope you understand what I'm getting at!!

Yes I understand

I'll give them a ring first thing Monday and hopefully they'll put my mind at rest

Thanks everyone!