ALumb05 Mortgage ERC problems

[ALumb05]

Hi

How did you get on with this, i think i am in a similar situation.....

My Mortgage Lender has left me with no alternative but to pay their charge so that i can move home because i have an expanding family and need to move to a bigger house.

I have been contracting at the same location in the same role for nearly 4 years now. 3 months ago i moved from working through an umberella company to working through my own Ltd Company. They will not port my mortgage across because i do not meet their criteria.

I am not trying to borrow any extra and the new property is worth more than my current property so the risk to them is less.

I have tried, as has my Financial Advisor to get them to change their minds but it is no use. My only hope now is that i can claim back the charge. I would think it is fairly similar to unfair bank charges but claiming early repayment charges back appears to be less common.

Thanks in advance

[WendyB]

Re: COURT MONDAY - Bradford & Bingley - ERC claim

Best thing would be to start your own thread on this, or for a Team member to move this post please?


How long is left on the ERC? Who is the mortgage company.
My personal thought is that you are on a sticky wicket here. It's your choice to move home, because you want to. Your mortgage company will say that is not their problem, that you knew the deal etc,

[ALumb05]

Re: ALumb05 Mortgage ERC problems

Hi, thanks for the reply

I am with Marsden Building Society have 4 years & 4 months left on a 5 year deal so as you can imagine i'm pretty annoyed by it all as it cost about £1,000 in fees to get the stupid mortgage.

I take onboard what you have said but i just think they are being unreasonable because the only thing that has changed is my taxcode. I'm earning more money and the new property is valued higher so it is less risk for them if anything. If i chose not to move i would still have my mortgage with them and be self employed for only 3 months and they wouldn't mind that. RRRRRRRRRRRRR, it is really winding me up!!

[natweststaffmember]

Re: ALumb05 Mortgage ERC problems

Hi, thanks for the reply

I am with Marsden Building Society have 4 years & 4 months left on a 5 year deal so as you can imagine i'm pretty annoyed by it all as it cost about £1,000 in fees to get the stupid mortgage.

I take onboard what you have said but i just think they are being unreasonable because the only thing that has changed is my taxcode. I'm earning more money and the new property is valued higher so it is less risk for them if anything. If i chose not to move i would still have my mortgage with them and be self employed for only 3 months and they wouldn't mind that. RRRRRRRRRRRRR, it is really winding me up!!

Is there a way of making a lump sum reduction so that you still have their mortgage but pay a minimal sum a month until the term of the mortgage ends?

[scoobydoo]

Re: ALumb05 Mortgage ERC problems

Were you under the impression that the mortgage was "portable" between properties when you took out the mortgage?

[ALumb05]

Re: ALumb05 Mortgage ERC problems

Hi

Scoobydoo

As far as i am aware, the mortgage is portable but Marsden Building Societys terms and conditions state.......

"All of our mortgage products are portable. This means if you move house within the product period you can transfer your current product to your new mortgage, subject to meeting standard lending criteria at the time. Where requests are outside lending policy and are declined, the early repayment charge will not be waived or refunded."

I have not checked if this was the case with my mortgage but as it was only a few months ago when i took it out i assume it will be the same.

NatwestStaffMember

My outstanding balance is £97,500 and i have already paid of the maximum i can this year so i don't think it would work.

I probably sound like a kid but.... It just isn't fair!!!!

They would continue to lend me money if i stayed where i am now but if i move to a more expensive property which would be less risk to them and i borrow nothing extra they will not. I think they are so desperate for cash that they are forcing me down the route of paying the Early Redemption Fee. It's so annoying that just because my tax code has changed i am punished like this! I'm losing hope that i can do anything about this but at least sites like this let you vent some anger!!!

Thanks for your help with this and if anyone can think of anything else, please let me know.

[WendyB]

Re: ALumb05 Mortgage ERC problems

What are their criteria and how don't you meet them?

[scoobydoo]

Re: ALumb05 Mortgage ERC problems

So I think you are saying that you have already moved and changed mortgage?

Because you statrted up your own company and are being paid as a Director they said you did not meet thier criteria so would not move the mortgage to the new property?

[ALumb05]

Re: ALumb05 Mortgage ERC problems

WendyB

They have said that there criteria is that they will not even consider mortgages for people unless they have at least 12 months accounts.

scoobydoo

So I think you are saying that you have already moved and changed mortgage?
No, i've not moved yet but i am in the process of doing so. I was thinking i would pay the ERC and then try and claim it back. I am losing hope that this will be possible though because i guess if i think about it according to the letter of the law they are doing nothing wrong. They are just being very unreasonable and not really looking at the circumstances as all i have done is change tax codes, i've never missed a payment and i found out recently i got an 'A' for my credit check.

Because you statrted up your own company and are being paid as a Director they said you did not meet thier criteria so would not move the mortgage to the new property?
They basically said that because i was now self employed and i did not have at least 1 years books i did not meet their criteria. I am the Company Director and i am also classed as a employee of the company so i wonder if i could use that argument?

[scoobydoo]

Re: ALumb05 Mortgage ERC problems

The only thing I can suggest is that you contact the FOS - now I know they take a long time but if you explain the urgency they may be able to help.

I think you probably are on a sticky wicket but I would try one last letter asking them for their final decision in writing telling them that you are making an official complaint and you will be sending thier reply to The FOS . You have nothing to lose and you can still use this letter if you decide you have to go ahead with the other mortgage.

I can help you with the letter later if you want.

There aresome bits and pieces out on the internet and the CML site about the ERC being reasonable which you may want to use.

[WendyB]

Re: ALumb05 Mortgage ERC problems

Just a slight thing here, but being a diector (and as such an employee of the company) and being self employed are two completely different things. Self employment usually relates to sole traders, partnership, sub-contractors etc, who are responsible for making there own tax returns etc. Limited companies are compleetley different. Although you are employed by the company, it is the company who is responsible for declaring the tax, employers/employees NI contributions etc. Obviously as a director you have other obligations also, but technically this is not classed as self employment, as it is Class 1 PAYE contributions, whereas self employment is Class 4, i believe. In effect, you starting your own limited company which you are employed by, could be deemed to be only the same as you moving from working for one company to another.

Don't know if this is of any use but thought I'd mention it anyway.