No more "intrest only" mortgages
Discussion
Last Friday I applied for an intrest only equity release mortgage. This was to be backed up by an offset savings plan.
I'm currrently doign this with my normal mortage - in essence just wanted to borrow a bit more to cover all the expednditure I'd put into the house doing it up. This has always been the plan.
This has been financially planned for over a year. Yet last Friday I was told that you can no longer have a new offset mortgage. Existing ones remain, but apparantly the goverment has decided that you can no longer be trusted to pay your mortgage so you HAVE to have a repayment or endowment or similar to guarantee the mortgage.
This is devestating to me. it really buggers up my plans, completly.
I phoned up last friday at 2:30 to start getting this mortgage arranged and apparently the law was introduced at 12:00!
Just my bl
ed luck.
Pleae someone tell me this is all buit and that a MAJOR offset lending bank dont know what they are talking about?
As I see it all companies that have been boasting recently that this typoe of product is great can effectively get not a single penny more business. This seems suspicious but my lender keeps insisting this is the case.
JC
I'm currrently doign this with my normal mortage - in essence just wanted to borrow a bit more to cover all the expednditure I'd put into the house doing it up. This has always been the plan.
This has been financially planned for over a year. Yet last Friday I was told that you can no longer have a new offset mortgage. Existing ones remain, but apparantly the goverment has decided that you can no longer be trusted to pay your mortgage so you HAVE to have a repayment or endowment or similar to guarantee the mortgage.
This is devestating to me. it really buggers up my plans, completly.
I phoned up last friday at 2:30 to start getting this mortgage arranged and apparently the law was introduced at 12:00!
Just my bl
ed luck. Pleae someone tell me this is all bu
it and that a MAJOR offset lending bank dont know what they are talking about? As I see it all companies that have been boasting recently that this typoe of product is great can effectively get not a single penny more business. This seems suspicious but my lender keeps insisting this is the case.
JC
Surely not!
Both Virgin OneAccount and First Direct look to still be offering offset mortgage.Thats what I'm thinking, but lets say that IF I was to say that I didn't think it was right but IF this company is wrong I'd be surprised especially IF this is their main business.
I'll ring them again. I've just been in shell shock the last week trying to work out what to do.
Thanks for reaffirming I'm not going completely mad.
JC
I'll ring them again. I've just been in shell shock the last week trying to work out what to do.
Thanks for reaffirming I'm not going completely mad.
JC
jconsta6 said:
... apparently the law was introduced at 12:00!
[Mr Spock]
Illogical, Captain! [/Mr Spock]
Would you care to calmly investigate which law it is that the third party are quoting at you?
Sounds like the 1979 Bolloxtalk From Peoplewhononothing Law (England and Wales) as amended in 2004.....
I had a Recruitment Consultancy try to get information out of me quoting some new "law". When asked for chapter & verse this was quickly downgraded to "guidelines" and then "our SLA with the client".
It is amazing how quickly people fold when asked to back stuff like this up with cold, hard facts.
It is amazing how quickly people fold when asked to back stuff like this up with cold, hard facts.
jconsta6 said:
last Friday I was told that you can no longer have a new offset mortgage. Existing ones remain, but apparantly the goverment has decided that you can no longer be trusted to pay your mortgage so you HAVE to have a repayment or endowment or similar to guarantee the mortgage.
Sounds like BS.
What would the government care anyway? No cash in it for them as far as I can see!
Sounds as "IF" its a change in company policy that came into effect rather than a new law. As suggested, ask for the details of the Act they're referring to.
Thanks all, I thought it was BS and he started quoting all sorts of references, and "government this..." and "Government that..." etc and becasue I was caught tottally off guard didnt probe as much as I should have.
Seeing as this obviously isn;t something I've just blatantly missed (glad you all didn't say - yeah we all knew about this!) I will go back to them and start getting facts.
I'll let you know if they persist with their twaddle... I suddenly feel better after regrouping and discussing it in the "bar".
Life is good again and the PH massive has once again helped me to a better life.
Pistonheads - Giving you all the useful friends you ever wanted, without the guilt of not sending Christmas cards.
Regards,
JC
>> Edited by jconsta6 on Friday 21st January 10:54
Seeing as this obviously isn;t something I've just blatantly missed (glad you all didn't say - yeah we all knew about this!) I will go back to them and start getting facts.
I'll let you know if they persist with their twaddle... I suddenly feel better after regrouping and discussing it in the "bar".
Life is good again and the PH massive has once again helped me to a better life.
Pistonheads - Giving you all the useful friends you ever wanted, without the guilt of not sending Christmas cards.
Regards,
JC
>> Edited by jconsta6 on Friday 21st January 10:54
IF I remember correctly from when I got my interest only offsetting mortgage about 2.5 years ago. The small print did say I should have some savings plan designed to pay off the mortgage at end of period. I think I may have signed to say that I had this but it was never chased further.
I'd be very surprised if govt regulated on this.
I'd be very surprised if govt regulated on this.
lonny said:In a roundabout sort of way - they do!
I'd be very surprised if govt regulated on this.
(But it would take a long time to explain how FSMA 2000 led to Chapter 11 of FSA MCOB Rules......)
Suffice to say that there are rules in place, under FSA regulation, in respect of "Responsible Lending" by someone in the UK who wants to lend you money for house purchase.
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