Friday, 2 October 2015

FCA new mortgage rules lead to disaster

I came to the end of a 5 year fixed rate mortgage with the Cooperative Bank back at the end of May. Phoning in March to start the ball rolling to change to a new product I was told that we couldn't because my previous mortgage was un-regulated and therefore I would have to go with someone else. Not easy when I also have another 5 year fixed rate with the Cooperative Bank which doesn't finish until the end of April 2018. In fact I could only find one financial organisation which would consider re-mortaging for us and that was Yorkshire Building Society. Anyway the Co-op changed their minds and so began a long and arduous time trying to change a 30k mortgage to another fixed rate deal. Firstly the Co-op are changing all their mortgages to the Britannia but at the same time the F***ing C***** A******* who think that changing their name from FSA to FCA will mean we all forget that it was them who shafted us over Northern Rock because they were too scared, lazy or incompetent to travel to Newcastle, have brought in new regulations to help us all not get conned by banks with regards to mortgages or is it so they can justify their existence.

Anyway whatever the reason, even though I literally want to switch my mortgage to another fixed rate, I now have to jump through all these hoops to justify I can afford the mortgage I already have. Factual interlude - my mortage was on 4.79% and I now want to put it on a 3.44% fixed rate - I think even with my limited maths I can work out that I can afford that seeing as I could afford it before. So I phoned to start the ball roling to find that I have to wait until ??? 20th May

having been advised to claim back my overpayment fund I received a lump sum of just under 35k and proceeded to pay my Dad the money I owed him and stick the rest in premium bonds. Imagine my surprise when I recived a letter stating that my £270 mortage payment for 50k was going to go up to just over £900 because of that extra 35k - yep do the maths, I couldn't work it out either. I phoned and was told that because I had used the overpayment fund so well my mortgage of 35k was on a term of 3 years so that was indeed the new mortgage. Unfortunately I hadn't been advised this when talking to the adviser and because my re-mortgage was going to take so long I could potentially be paying this extra £600 for another 2 or 3 months.

The only way to get around it was to give the money back and treat the re-mortgage accordingly. I had to do this within the next 14 days or there was nothing they could do. So I got the money back from my Dad and started that painstakingly annoying process of getting the money back from the Premium Bond people. I got a financial "sorry" from both orgnaisations for the inconvienience. 

Anyway I had my interview for "how much I can be lent" even though I wasn't asking to borrow any more money. YOU HAVE TO HAVE THIS TALK even if you are borrowing same amount or less so it seems. I then waited ??? weeks to have the talk about whether I can afford to BORROW THE SAME AMOUNT AS I ALREADY PAY FOR even though I am going to be on a lower interest rate. This is the talk where they ask you such things as: why do you want that particular fixed rate? because I have worked out what I can afford, how long I can afford it for and have done all my sums can you afford the repayments? I reckon so becuase I have afforded bigger repayments and am reducing my mortgage paymernts I am happy at this point that my 4 sub account mortgage will be consolidated making my life easier and stopping my mortgage spreadsheet from looking like a zentangle diagram but unfortunately I cannot consolidate my 4 mortgages into one but instead have to keep those 4 sub accounts and add another one because the lowest re-mortgage is 30k and I only want 26k!!! I therefore have to add anoth sub account of 5k (that is the minimum amoutn for a sub-account)!!!! So now I have 5 sub accounts not 4, an extra 5k I don't need and I can't have an overpayment fund any more because Britannia don;t do those!!!!!!!!!!!!!!!!!!!!

It's ok though because it is still within my budget and according to the national average for a family like mine I could afford a lot more. Expecting my mortgage papers on ??? I phoned on 11th July to find out where they were worrying that 28th July was rapidly approaching. I was told that a printer failure meant that they hadn't been printed 2 weeks previous. 2 WEEKS to fix a broken printer - COMPLAINT no.2 raised in relation to this mortgage. Anyway send thr paperwork back and wait

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