Mortgage Fixed Rate Mistake

gavinmcg20

Had my fix term end in July. Signed back up with a 5 year fix term and then noticed I had paid a higher repayment. Rang the bank and they said I may have ticked the wrong box on a form and gone for a 10 year fix rate at a higher rate. I noticed this immediately and got onto the bank the day after the first mortgage payment came out. The bank say I can only break out if I pay 6k? I am not looking to break out thou? Just fix the mistake which is 5 days old at the point!

Is there a grace period with mortgages or anything I can do?

Any help would be much appreciated

Trish56

Ask for the breakage fee in writing and advise them you are making a complaint to the Financial Regulator. Did they not confirm your monthly repayment when they received back your option form or was the monthly repayment not on the form giving you the different options.

gavinmcg20

Thanks for the reply.

We got a page with 6 options on it 1,2,3,5,10 years on it and boxes on the opposite side of the sheet. We apparently clicked the box below the one we choose. We never got a confirmation of the rate afterwards.

I noticed the mistake the day the first payment came out and contacted them. I assumed this could be rectified or there was a cooling off period. But no!

Wheety

Your next step should be an official complaint. Ask them what their complaints procedure is or check on their website.

hanaimai

I note you said you didn't get any confirmation of the rate - did you get what's known as a European Standardised Information Sheet? It's a short document that sets out all your loan details e.g. amount, term, rate etc. It would also state whether you have any rate to withdraw or not. If you did get one see what it says about both the rate and right to withdraw. If the rate is 10 year fixed on that and you've no right to withdraw I doubt you will get anywhere without paying the break free but if the rate is 5 years on that you would have a good case against the bank. If you didn't get this document at all you would also have a good case.

If you're making a complaint you have to complain to the bank themselves first. Once that process is complete and you're still not happy you can then complain to the Financial Services Ombudsman.

Shefwedfan

As above you should have got doc

If you did then you are screwed.....if not then you can complain

If you did receive letter it’s not worth lying about it....bank have all this documentation backed up 20 times and you will cause more problem

In that case go to local bank, explain situation and tell them you missed letter in box etc and they might do out of kindness of hearts