Re-mortgage application forms query?

[Undercover Elsa]

Re: Re-mortgage application forms query?

It's ironic really that they're doing this for misselling yet they still don't get it right...by suggest the least beneficial (to Di) option of making payments off the interest free loan rather than advising her to clear the interest loaded debt, as you would to your clients MGF.

[diddlydee]

Re: Re-mortgage application forms query?

A good result Di, well done!

A couple of words of caution. With regards to the £54,000 loan on which interest will be charged. Does this have any built in T&C's regarding overpayment, redemption or part redemption? If it is on a fixed, capped or discounted rate (sorry I haven't read the whole thread) sometimes early repayment by any of the above methods can cause you to incur a penalty charge.

Providing no penalty exists, then, the rate of interest charged on the mortgage would need to be lower than you can get in a savings account to make it worth having savings. If it is higher, then any extra you can pay towards it will reduce the term.

From what they say in their letter, providing you don't sell or remortgage, they are quite happy to let the sub-loan (without interest) sit there for 20 years, even if the main mortgage has been paid off? This being the case, you can then use excess income to save, gain interest, and then pay of the interest free loan when due.

A right result, but please, carefully check T&C's before overpaying.

diddly x

ps. is this an interest only or repayment mortgage?

[Never-In-Doubt]

Re: Re-mortgage application forms query?

LOL aye..good point...same principle..I suppose it's down to what the loan interest rate is compared to what savings rates are available. Eg my mortgage is 0.5% above base rate so if I was in same situation wouldn't I be better off with a 4% ISA?

Our self-cert is 6%

We'd be worse off

[Undercover Elsa]

Re: Re-mortgage application forms query?

ouch!!

[di30]

Re: Re-mortgage application forms query?

Wow thank you all, you've all been amazing.
Just handed the letter to hubby now he's arrived in from work.

Will come back to re-read your posts folks, thank you all.

[di30]

Re: Re-mortgage application forms query?

A good result Di, well done!

A couple of words of caution. With regards to the £54,000 loan on which interest will be charged. Does this have any built in T&C's regarding overpayment, redemption or part redemption? If it is on a fixed, capped or discounted rate (sorry I haven't read the whole thread) sometimes early repayment by any of the above methods can cause you to incur a penalty charge.

Providing no penalty exists, then, the rate of interest charged on the mortgage would need to be lower than you can get in a savings account to make it worth having savings. If it is higher, then any extra you can pay towards it will reduce the term.

From what they say in their letter, providing you don't sell or remortgage, they are quite happy to let the sub-loan (without interest) sit there for 20 years, even if the main mortgage has been paid off? This being the case, you can then use excess income to save, gain interest, and then pay of the interest free loan when due.

A right result, but please, carefully check T&C's before overpaying.

diddly x

ps. is this an interest only or repayment mortgage?

Thank you, yes this is a repayment mortgage.

Good point on the T@C's.
We are to let them know by 28 days, and if we agree, they state everything will be set up as new, so I will also make sure that will include the above as you mentioned.

Excellent posts from you all, thank you.

[confused76]

Re: Re-mortgage application forms query?

Sounds like a really good deal Di! Very pleased for you!

[pompeyfaith]

Re: Re-mortgage application forms query?

Di,

WOW you really are on a roll, well done

[MrsD]

Re: Re-mortgage application forms query?

sounds cushty Di

well done, just make sure you get everything in absolute triplicate with bells, 20 years is a long time, gawd know what may happen to banks in that time, so you need to be watertight.

great result though

[diddlydee]

Re: Re-mortgage application forms query?

I'll be more than happy to check thru any t&c's hun xx

[di30]

Re: Re-mortgage application forms query?

Thank you all so much.

The one dealing with it is now away until 06 June, my mortgage payment generally comes out the 10th of every month, so I expect we should have new paperwork to sign enclosed with new T@C's as well, will certainly be making sure on that before signing anything, as we want to know what is what too, overpayments and so.
I expect the new monthly repayment will then kick off from July, that's my guess anyway.

Lots of very good thoughts and ideas from you all folks, thanks again, both myself and hubby appreciate it big time. XxX

[di30]

Re: Re-mortgage application forms query?

Still not signed yet, waiting for the one dealing with it to come back from her hols next Weds, need to check a few things out first, such as T&C's etc, new paperwork and so on.

However, we just have 28 days as from the date of the offer to send it back.

[mgfboy]

Re: Re-mortgage application forms query?

I still find it hard to believe they have done this, in my 20 plus years in the industry I have never heard anything like it.

I'm so happy for you that for once the banks have done a good thing, without you even really asking for it

[di30]

Re: Re-mortgage application forms query?

I still find it hard to believe they have done this, in my 20 plus years in the industry I have never heard anything like it.

I'm so happy for you that for once the banks have done a good thing, without you even really asking for it

I agree, it was the fact that I previously questioned about the app details then left it be, they contacted us out of the blue to say they were looking into things, and then this as a result, can't fault them.

Thanks so much for your help.

[di30]

Re: Re-mortgage application forms query?

Paperwork due to come through soon.