Missed deadline to switch to competitive deal

w00519772 · 19 March 2019 at 7:47PM

My five year fixed rate mortgage is due to expire at the end of this month (well it has been 4 years and 8 months actually).

I called Bank of Ireland at the beginning of the month and they said let us know by the end of the month if you want to switch to another deal. I called them on Monday and I was told that the deadline to switch was Monday i.e. all the paper work must be returned by that date. I want to switch to their two year fixed.

I am told that I must move to the SVR at the end of the month, which is 4.74%! The fixed rate deal I want is 1.98%. Therefore I would pay an extra £144.90 PCM in interest next month based on these calculations:

((1.98/100)*63000)/12=£103.95
((4.74/100)*63000)/12=£248.85
248.85-103.95=£144.90

Is there anything I can do here. Is it normal to put a deadline like this for switching? I understand that they would have a problem if everyone applied to switch on the last day of the month, however they tell me that the switch process is simple as I am an existing customer i.e. no credit check needed etc. What can I do?

1) I have already said that I forgave them when I received a letter addressed to someone else last year with all their mortgage details (I did receive £100 compensation)
2) I have already said that I forgave them when they took three months to respond to my complaint for point one (they said in writing it would take up to one month). They apologised in writing for this.

Is there anything I can do here? Do I just put this down to a learning experience or can I realistically fight for the new rate to be applied at the beginning of next month? Perhaps I could ask to start on the 4.74% and then backdate once the application completes?

Has this happened to anyone else? If so, then what happened for you? Thanks.

ACG · 19 March 2019 at 8:01PM

Could you imagine taking something of that magnitude to your grave with you. Well done on forgiving them, that is pretty big of you. I have absolutely no idea what it has to do with your question though.

Annnyway, my mortgage deal comes to an end at the end of this month. Virgin money needed my paperwork by yesterday.

Your Direct Debit is set up to take the money around 7 days before it actually takes. So you usually need to do things in advance. Chances are they will not receive the paperwork and drop everything, so it will no doubt sit in a queue for a day or 2 before it gets worked.

LRmortgage · 19 March 2019 at 8:02PM

Bank of Ireland are really stringent with this.
If the firms aren’t signed and back in their office by a certain date of the month you don’t get the switch until after the following month’s deadline.
Yep, chalk it up to experience and get it sorted ASAP so you only go onto the SVR for one month.

w00519772 · 19 March 2019 at 8:04PM

ACG wrote: »

Could you imagine taking something of that magnitude to your grave with you. Well done on forgiving them, that is pretty big of you. I have absolutely no idea what it has to do with your question though.

Annnyway, my mortgage deal comes to an end at the end of this month. Virgin money needed my paperwork by yesterday.

Your Direct Debit is set up to take the money around 7 days before it actually takes. So you usually need to do things in advance. Chances are they will not receive the paperwork and drop everything, so it will no doubt sit in a queue for a day or 2 before it gets worked.

Thanks for that. I am planning to apply online, which means the signing process is straight away (Verisign).

With regards to your point about the "forgiving". Perhaps that is not the correct word. I believe it is relevant because they did not do things on time. Therefore I could use this as ammunition when I apologise for not completing the switch process on time.

w00519772 · 19 March 2019 at 8:07PM

LRmortgage wrote: »

Bank of Ireland are really stringent with this.
If the firms aren’t signed and back in their office by a certain date of the month you don’t get the switch until after the following month’s deadline.
Yep, chalk it up to experience and get it sorted ASAP so you only go onto the SVR for one month.

Thanks. Is BOI the only one that is stringent. I don't ever remember having problems like this before. My friend tells he recently switched on the last day of the calendar month, but that was with a different bank.

w00519772 · 19 March 2019 at 8:14PM

LRmortgage wrote: »

Bank of Ireland are really stringent with this.
If the firms aren’t signed and back in their office by a certain date of the month you don’t get the switch until after the following month’s deadline.
Yep, chalk it up to experience and get it sorted ASAP so you only go onto the SVR for one month.

Is there anything I can do? Are they ever flexible?

Are BOI the only bank that are so stringent?

LRmortgage · 19 March 2019 at 10:42PM

The problem is that BOI send out an offer in the post and want a signed copy back from you the Client.
Many lenders have a complete online service, that doesnt need any signatures and is basically all processed by computers. These are basically instant switches or you can pick the date in advance when you want the switch to take place.
Not all lenders are the same though.

glosoli · 19 March 2019 at 11:51PM

You may find that your new interest rate could be implemented, for example, on 10/04/2019, with the next payment being taken being for the full Standard Variable Rate amount.

This means that you would have accrued interest for 10 days at 4.74%, and the remaining 21 days of the month at 1.98%. And although the payment leaving your account is a full Standard Variable Rate amount, you may find that this will actually be a slight over payment due to the majority of the month being on the new rate.

So it likely is not as bad as you think.

w00519772 · 20 March 2019 at 12:06AM

glosoli wrote: »

You may find that your new interest rate could be implemented, for example, on 10/04/2019, with the next payment being taken being for the full Standard Variable Rate amount.

This means that you would have accrued interest for 10 days at 4.74%, and the remaining 21 days of the month at 1.98%. And although the payment leaving your account is a full Standard Variable Rate amount, you may find that this will actually be a slight over payment due to the majority of the month being on the new rate.

So it likely is not as bad as you think.

That is what I originally thought. However, when I enquired BOI said the new fixed rate would be applied on 01/05/19 as I have missed the 01/04/19 deadline. Called HSBC, first direct, Santander and nationwide tonight (I have current accounts with them). They all say that an online switch is instant!

glosoli · 20 March 2019 at 12:47AM

Have you tried phoning up and saying you want to complain and want to speak to a manager? Having worked in a mortgage product switch department before you would be surprised at the lengths they would go to once someone kicks up a fuss.

I think the difference between HSBC/FD/Santander compared to smaller banks is they have the budgets to have all singing-all dancing systems, whereas all of the other banks are using patched up systems with mainframes from the early 2000's.

ACG · 20 March 2019 at 7:17AM

I am with Virgin Money and I had to fill out a mini application form, wait for the forms in the post, sign them and email them back by the 18th of the month prior to the deal finishing.

BoI appear to have a similar cut off point.

I am sure BoI do something similar to Virgin and other lenders and send you confirmation of your deal coming to an end around 3 months before it ends.

Missed deadline to switch to competitive deal

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