BountyHunter
Registered User
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Am I being ripped Off?
What did the original loan offer/agreement say about how long the fixed rate applied for?Started my mortgage in March 2006 on a fixed introductory rate for 2 years. Last Friday I recieved a letter from the financial institution saying the rate was over, I was very surprised as I wasnt expecting this until March 2008. I contacted the institution and was told that this product had a certain shelflife which has expired. I have contaced the institutions customer service looking for a more detailed answer and am waiting for a reply. Has this happened to anybody before?
I have a letter from the mortgage broker saying it was for 2 years, apologies for the incorrect title
Hi there.Maybe this is a cynical attempt by the banks to reduce their losses as a result of the credit crisis? Many institutions are now "losing money" on certain loans. If they do this a hundred times, not everyone will query it as you are doing. If you have the original agreement and it states that the rate is applicable for 2 years then you should not back down. Maybe I'm being over cynical myself, but past experience of what banks can get up to with overcharging etc would make me worry.Best of luck
They should be able to. If you cannot find your copy of the original loan agreement then put your query in writing to the lender so that they must give you a formal response - e.g. why is the rate changing now, what part of the original loan agreement/initial fixed rate period agreement allows for this etc.I'll have a look thru my agreement and check, thats if I can find it, the lending institution should be able to furnish me with a copy if I cant?
When mortgage rates started rising in 2005 some of the banks were offering certain rates for certain fixed periods of time.
To give you a real example we fixed with NIB for two years at 3.29%. That was the rate we were offered when we applied in Feb 2006, but by the time all the paperwork came through it was the end of April 2006 before we drew down the mortgage. The fixed rate period was to run from Feb 2006 to Feb 2008 and so we will only get that fixed rate until the end of Feb 2008, even though that it not two full years since we drew down the mortgage.
I can only quess that something like this applies to the OP. Go back and look at your copies of the mortgage details and it should give you the info. I still reckon you will have saved a substantial amount over the period of the fixed rate.
Maybe - you really need to check the terms and conditions of your specific loan agreement.So its from the time they make you the offer and not the time you draw down the mortgage that the 2 years starts?
If you have a gripe with your solicitor then surely that's a totally separate issue? Have you raised these issues with him?Its kinda silly as there's a few variables that can affect how quick you can get into your house, and by that I mean the solicitor I used seemed kinda slow. For example he had told me on a few accasions he had sent paperwork to the bank when infact he had not as I called the bank directly and they informed me that no paperwork had arrived.
"and by that I mean the solicitor I used seemed kinda slow. For example he had told me on a few accasions he had sent paperwork to the bank when infact he had not as I called the bank directly and they informed me that no paperwork had arrived."
I am a solicitor. I regularly send paperwork to banks. They regularly say they did not get it. My clients routinely prefer to accept the word of the bank rather than my word. Banks generally find the paperwork when you send them details of who signed for them.
mf
Key word here is "apparently" - until you check the terms & conditions of your loan agreement we simply don't know.Clubman:
I never said I has a gripe with my solicitor, merely stating that it seemed to take a while to get paperwork sorted which in turn delayed me getting into my house. While all this is going on the clock on my 2 year fixed rate mortgage is ticking apparently.
I just didn't understand where the seeming non sequitur about your solicitor delaying with the paperwork came from and what it had to do with the substantive issue here.I'm stating my own experiences with my first house purchase, I'm not looking for an argument or pointing the finger at anybody just looking for advise/input into what is for me a very important issue.
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