Are they allowed to do this?

[looking4advice]

hi everyone,

 

I'm hoping someone can help me as I'm in a bit of a dilemma.

 

Back in may 2012,

I went to halifax bank and got an advisor to help me re-mortgage for a 2yr fixed deal with halifax bank.

 

Today I called them generally to ask some questions regarding making overpayments

and also when I can make an appointment with an advisor to get my mortgage product reviewed.

I was shocked to find out that even though I took out 2yr mortgage in may 2012, it doesn't finish until end of aug 2014!

 

How can they do that?

A 2yr fixed should run from may 2012 to may 2014, should it not?

Yes, it's true that it states it on the paperwork,

but if your told that your in a certain length of contract,

then surely that should be the length?

In my eyes thats sneeky as the actual length of term is not 2yrs, but 2yrs and 3mths!!!!.

 

For example how would you guys feel if you were told that your mobile contract is 12mths, but on the paper it ran from jan 2014 to april 2015?

 

Is there anything I can do about this?

 

Thanks for your help.

[renegadeimp]

Have you asked them how they calculated this?

[Lula]

Firstly, what does it say in your paperwork, the exact words? secondly, the advisor should have given you some paperwork prior to the mortgage application, it can be called a "Reason why Letter" in which he states what product he recommends and why and the important facts, ie the term and when it would start and finish.

[looking4advice]

Hi renegade and Lula,

 

Thank you for your fast reploes. I asked the lady and she said that it clearly states the product end date on the kfi and unfortunately she's right it does! But she did say it was a bit odd. I'm not sure about a reason why letter...nor do i remember it. But if you are told it's a 2yr deal and you take it out in may 2012, then surely it should come to an end in may 2014? ...otherwise how can you call it a 2yr fixed deal?

[Lula]

If it clearly states that on the KFI then you might just have to wait, did you get a letter from the consultant at all? what did that say?

[looking4advice]

I've just checked it and it clearly states the date... How could I have been so stupid

 

I'm wondering... How can I calculate if it would be beneficial to cancel the product and pay the penalty fees.. Can anyone help me please?

[Lula]

Just ask them, they will happily tell you then add up how much you save with the new product.

[looking4advice]

They've already told me that it's £500 penalty or 2 percent of outstanding mortgage

[Lula]

Which ever is the least or the most?

[looking4advice]

Thanks, but how do they/will they calculate if I am better off?

[Lula]

Only if the product is with them, if you consult a Financial Adviser they will also help you calculate it.