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Contract Law and mortgages, when is a fixed mortgage not fixed
I am Weasel
post Mon, 4 Dec 2017 - 19:35
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Hi,

Can somebody advise me of the laws that govern mortgages. I am writing a compliant and want to get my facts straight as I expect a fight from the bank. Here is the background

  • In August I visited Barclays because I was near the end of my then fixed-term with them and wanted to lock-in a fixed rate for the remaining 5 years of the mortgage
  • At a visit to the bank, the mortgage adviser showed me that by switching rates, my monthly payment would be reduced to £1,760 per month - fixed for 5 years (remaining term) with a one-off fee of £899
  • I received a letter from the bank dated August 25 that confirmed the new monthly payments and showing a switch date of 01 Sept
  • I had also asked for my payment date to be moved from 15th to 1st of month and was happy to bring forward my payment date - this happened OK and I paid on 15th Sep and 1st Oct
  • On 28th Oct, I received a letter from the bank stating my payments were to be £1,790 per month i.e. £30 more than on the offer letter
  • I rang to query this and after a long and boring run through the script the call-centre person had to go through to try and pacify me, I was informed that my query would be analysed in detail and I would receive a written response within 4 weeks
  • On 4th December, I received the letter below which is a complete fob off. I am formulating my response, but would be grateful for any guidance about particular points of law. I think that the bank should honour the original offer because in trying to change the payment amount, they are attempting to unilaterally vary a core contract term. It is my contention that a mortgage contract is no different from any other in that it requires consideration, offer and acceptance, all three of which were present so the contract should be formed on the basis of the offer

The extra £30/mo multiplied by 5 years is £1,800 and considering the total interest charged according to the offer letter is £6,400, this represents a 28% increase in the total interest payable

Below is their fob off letter and I can if needed upload the original offer letter of 25th Aug (6 pages to redact). the monthly pay figures above are rounded to the nearest tenner, but the difference is still 30 clams (plus a bit) per month

What are your thoughts guys?


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post Mon, 4 Dec 2017 - 19:35
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Redivi
post Sat, 2 Jun 2018 - 07:54
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It was the obvious explanation and has cost them at least half the disputed amount

£500 compensation for your wasted time
£400 charge for Ombudsman investigation
Couple of hundreds for their own time

It's a shame that the saga has probably left them in profit - it's been discussed at somebody's appraisal whose salary progression or promotion expectations have been damaged as a result
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cp8759
post Sat, 2 Jun 2018 - 10:40
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QUOTE (Redivi @ Sat, 2 Jun 2018 - 08:54) *
£400 charge for Ombudsman investigation

Make that £550 http://www.financial-ombudsman.org.uk/faq/...funding_a5.html


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I am not on the "motorists's side", nor am I on the "police/CPS/council's" side, I am simply in favour of the rule of law.
No, I am not a lawyer.
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southpaw82
post Sat, 2 Jun 2018 - 13:30
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QUOTE (Redivi @ Sat, 2 Jun 2018 - 08:54) *
it's been discussed at somebody's appraisal whose salary progression or promotion expectations have been damaged as a result

I very much doubt that.


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Any comments made do not constitute legal advice and should not be relied upon. No lawyer/client relationship should be assumed nor should any duty of care be owed.
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