In 1994 my my partner and I approached Britannia Building Society. We were advised that it was better if I was left off the mortgage, due to my status as a freelancer. Recently however, I began to question why I could not ask simply questions about it, like 'questionable rates'. The Data Protections Act was quoted. Apparently, because I had signed a document 'postponing' my rights Britannia determined that I had no right to know - whatsoever!(posted 7958 days ago)Fortunately my partner gave her 'permission'. Unfortunately, I discovered a number of 'errors'...
We sold the property in 1999. But we were charged an early redemption penalty; even though Britannia advised us to take out a different product - and the penalty had five weeks to run.
After some time, Britannia apologised for the 'error' 'decision' etc and returned the amount in full. However, having delved into its mortgage dealings, I also discovered something curious... A cheque had been drawn for £195 in Britannia's name (PRIOR TO THE MORTGAGE BEING ACCEPTED) - but this amount was also added to the mortgage.
After some time, Britannia apologised for the 'error' - and returned the amount.
But Britannia's accounting still appeared odd...
Our money was loaned back to us via two mortgages, the first at the lender's SVR. Is it not reasonable to match the same rate? Unfortunately, Britannia felt it had 'exhausted' its investigation, and suggested I go to the Ombudsman - again.
I had also discovered that a Higher Percentage Arrangement Fee (aka MIG) had been charged to the first mortgage. Britannia had taken the purchase price of the property rather than its 'true' value, having ignored the equity I had in it (as a sitting tenant). In short, the equity was postponed - ignored.(The purchase prices to my partner would have been considerably higher at the market rate. (It seems I did more than postpone my rights in favour of Britannia's - so be warned!)
But can a lender ignore the true value of a property and charge a MIG? Something else...
The first mortage was taken out as a two-year fixed rate product at a rate of 6.25%. However, amounts deducted via direct debit were raised to 6.5%.
When presented with the findings Britannia became confused and seemingly evasive - initially agreeing then, finally, disagreeing. Britannia now claims that the rate was increased because we failed to take out Homeguard Insurance. This too was strange...
Direct debit payment had been going out to Britannia from the commencement of the mortgage. What for? No one seemed to know. I simply placed a call to Britannia's insurance branch which confirmed -'Homeguard Insurance'.
I faxed the results of these findings to Britannia's chief executive, along with a deadline, but received no response. And there were other anomalies...
The mortgage offer held by Britannia differed somewhat from the one in our possession - it contained 'attachments'. These additional pages allowed the lender to tie us in for an extra three years after the fixed rate ended. (Something I feel sure was not agreed as it was a two year fixed rate - with no mention of a tie in.)
Why do we not have these 'attachments' in our possession? Has anyone out there had a similar experience with Britannia?
JPM