Bank messed up porting/transferring my mortgage mjv1986

#1
Hi all,



I just need a little help as to what to do.



I had a mortgage with a bank and then I moved house borrowing a bit more. My mortgage offer I went for a fixed rate X%. I was on a fixed rate Y% on my original mortgage until Nov16 and then I was told to switch this to the new X% rate for Dec16 onwards and then when I moved, all mortgages would be on the same rate as they would "port" or as I would call it, transfer, my mortgage when I moved. Excellent.



Now I have moved in February 17 and they have "closed" my original mortgage and opened 2 new mortgages. One with the value of my original mortgage, as well as the added bit borrowed. OK, that seemed a bit weird but if thats how they do it then fine.



The problem is that I have now been charged an early redemption charge on my original mortgage and on one of the "new" mortgages I have been put on a high variable rate.



Also, because the original mortgage wasn't closed due to this early redemption charge sitting there, they have taken an additional monthly payment out on that mortgage!



I spoke with the bank on 22nd February (and various dates since) and they are still "looking into it" even though everyone knows what went on, and it has been put through as urgent. Do these things take this long? I thought it would just be a case of them realising it has been moved wrong and correct it? I'm not sure what to do next.



Thanks for any help.

#3
Did you get something laying out the details of the different pots of money? Might be called a mortgage illustration? Or any other documentation in writing?



If you did what does that say and does that give an early repayment charge (ERC)?

#4
These things tend to iron themselves out over the course of a month or so,



Did you buy and sell on the same day?



Normally, the full redemption figure has to be paid up front (i.e, account shut), and then the ERC is refunded once the new account is active, or if buy and sell on the same day, they generally are not charged at all. It is unusual that the existing account would remain active, but again, these things tend to iron themselves out.



Just an observation however, who on earth advised you to swap onto a new product, with early repayment charges, so close to moving home? Would have had massive financial implications if it was declined ! ...

#5
It seems to have taken a lot of nagging and calling but things seem to be moving. I got refunded the £443 payment HSBC should never had taken.



I was advised by my in branch mortgage advisor to switch to the 5 year fixed in December. In hindsight I probably should have just had a few months on the variable, but we have no idea when we would move and it had been a nightmare chain!



I just worry because if it isn't sorted out in the next 2 weeks, they will take 2 direct debits, one for each mortgage, which is going to be a fair bit of money. I just hope this is the start of them sorting it out. I was promised a phone all today and never got one!



Nicholbb - I was under the impression, the "existing mortgage" would port to a new account, and the additional amount would be a separate mortgage. So I would have 2 mortgage accounts but the total payment would be what I discussed with her.



They have admitted it is an error, but I just cannot see how 3 weeks on, it still isn't sorted out!



Thanks for your replies!

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