Mortgage switch. If we change our minds halfway through..?

[Fauve]

Hi
We have commenced a process with NIB to switch our mortgage (way back in March).
Still ongoing, we have no paperwork from them to even show anything is happening.
As the weeks go on, we are beginning to think this may have been a bad idea.
The switch would mean a difference of .3% on what we currently have.
I am very worried about the lack of contact and pillar to post feeling I have when dealing with NIB.
So we are now thinking is it worth it? We would have legal costs (as I suspect they will not now cover some of our solicitor fees as was part of the deal when we commenced this. It is no longer part of their switching package).
We would go back up to the original amt of mortgage as it was in March instead of what it is now (a few thousand difference in captial).
Also the year would go back to the full, ie 20 instead of 19.5 as it is now.
So, aside from the lack of confidence in the new bank, and while I would love to reduce the interest rate, we are coming to the conclusion that we should read the signs and stop the process now.
Has anyone pulled out halfway through and what happened?
I can't see that we are doing anything aside from changing our minds, so there should be no penalties.
Any advice please.
Thanks

 

[LDFerguson]

So we are now thinking is it worth it? We would have legal costs (as I suspect they will not now cover some of our solicitor fees as was part of the deal when we commenced this. It is no longer part of their switching package).

I don't deal with NIB but surely they couldn't refuse to honour a free switch offer if it was available at the time you applied and you were not the reason why it has taken so long?

What do NIB say about the delay?

If your mind is made up not to proceed, contact your solicitor and ask if any work has been done on your file to date and if so, is there a fee payable if you pull out. If no loan offer has been issued, I suspect the solicitor may not have worked on your file yet.

We would go back up to the original amt of mortgage as it was in March instead of what it is now (a few thousand difference in captial).
Also the year would go back to the full, ie 20 instead of 19.5 as it is now.

This isn't so. Yes the new mortgage would be for the amount you originaly applied for, but if there's a difference between the NIB mortgage amount and the ultimate redemption figure on your current mortgage, this difference will be refunded to you by your solicitor. You can then apply it immediately off your NIB mortgage (assuming it's a tracker or other variable) which will put you back to where you are now.

 

[Fauve]

Hi LDFerguson
Many thanks for your reply, most helpful in many ways.
Well, just as I thought we were at the end of the line with NIB, much paperwork came today and finally it looks like things are happening.
We are going to go ahead as it works out better for us in many ways.
I hope we haven't missed something.
There is no mention of solr fees being covered in the documentation that came today, I am wondering should I get this clarified now before we sign anything or just proceed and hope for the best.
We wont be changing our minds if they tell us they wont pay, so I am thinking we should just hope that they honour this part of the deal?
I know it was a matter of days between our application being received and their new switch offer (with no legal fees covered) commencing.

To answer your question about the delay, there was a mumbled reference to their legal dept being short staffed... My own "feeling" is that we were forgotten about, as every time I ring now they can't be more helpful.

As a matter of interest, has anybody switched and used own solicitor?
Thanks again.
Fauve

 

[LDFerguson]

Personally I'd be inclined to clarify about the free switch now rather than proceeding and hoping for the best. If you clarify now, you have the valid argument that you applied before they changed the rules and also you have some leverage in that NIB don't know that you're prepared to proceed one way or another. Nor would I be rushing to tell them this.

If they do renege on the agreement and you proceed anyway, they know that you're highly unlikely to switch again after the event as that will cost you more money and time.

 

[WaterSprite]

I switched to them and used my own solicitor but there was a cut-off date for drawdown in order to get the legal fees reimbursed and we managed to get in before the cut off date. If they (NIB) were the cause of the delay though, they might allow at least some legal fees in order to start off on the right foot - have a word with your NIB person and see what they say.

Sprite