Got a letter yesterday to tell me that the "net" repayment option (which I think they call "standard") was no longer available - this is where you make repayments based on your net mortgage, netting off mortgage account and current account.
So now theres no choice you have to make repayments as if you are paying off the gross mortgage sum (think they call this "planned repayment").
Since the interest cost is the same in both cases the Planned Repayment means you pay off your mortgage quicker as greater capital being allocated over from your current account to offset against loan account.
It had been suiting me to build up a "rainy day" fund in the current account and I was hoping to effectively repay my mortgage early by the funds in current account going up and meeting the loan account coming down somewhere in the middle. With the increased repayments its going to be hard for me to build up the "rainy day" fund much more.
On the point of principle, we signed up to a 20 deal and now a few years in they are changing the goalposts. I'm going to read the fineprint of the original deal when I get a chance but, regardless of it theres an "out" there, I think its most unprofessional to arbitrarily make changes to an agreement mid-race. I've a good mind to get irate and tell they where they can go & discuss it with the Financial Regulator/Financial Ombudsman if they want & remind them they are not the only "offset" mortgage providers.
Am I being unreasonable?? Are they trying it on??
So now theres no choice you have to make repayments as if you are paying off the gross mortgage sum (think they call this "planned repayment").
Since the interest cost is the same in both cases the Planned Repayment means you pay off your mortgage quicker as greater capital being allocated over from your current account to offset against loan account.
It had been suiting me to build up a "rainy day" fund in the current account and I was hoping to effectively repay my mortgage early by the funds in current account going up and meeting the loan account coming down somewhere in the middle. With the increased repayments its going to be hard for me to build up the "rainy day" fund much more.
On the point of principle, we signed up to a 20 deal and now a few years in they are changing the goalposts. I'm going to read the fineprint of the original deal when I get a chance but, regardless of it theres an "out" there, I think its most unprofessional to arbitrarily make changes to an agreement mid-race. I've a good mind to get irate and tell they where they can go & discuss it with the Financial Regulator/Financial Ombudsman if they want & remind them they are not the only "offset" mortgage providers.
Am I being unreasonable?? Are they trying it on??