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Nicola-mod, Moderator
Category: Law
Satisfied Customers: 21
Experience:  Moderator
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I entered into an equity mortgage scheme backed by the government

Customer Question

I entered into an equity mortgage scheme backed by the government in 2009. The Co Op secured the contract and I got the mortgage through them and the equity was provided by Places for People. I renewed the mortgage deal after 2 years , again with the Co Op and with minimal costs. This deal was set to run out in Dec 2014 so I rang the Co Op and was told they were no longer supporting these type of mortgages. I approached mortgage advisors at Places for People and they made the approach to the Woolwich (Barclays) the only alternative option on the market (other than staying with the Co Op and accepting their much higher variable rate). The issue I have is with all the resultant costs I have incurred as a result of this forced move. I have been charged £999 for the deal itself, £175 plus VAT by the conveyancers Enact for work related to the deed of postponement, and £90 by Places for People for admin costs, and this is for just a 2 year deal with the prospect of these charges being applicable again in 2 years time. In addition the deed of postponement is causing a delay in the mortgage process which will potentially cost me more as the Co Op begin to apply their variable rate. It all seems very unfair to me given that these deals were set up in the first place to help people like me on a low household income. Any help much appreciated.
Submitted: 3 years ago.
Category: Law
Expert:  LondonlawyerJ replied 3 years ago.
LondonlawyerJ :

Hello I am a solicitor with 20 years experience. I will try to help you with this.

LondonlawyerJ :

This is a contract dispute and the answer will be in the documentation you signed at the time you took out the mortgage.

LondonlawyerJ :

You need to look at correspondence from the conveyancers (whose fees were very low if they only charged £175) and the mortgage contract to see what terms apply at the end of the 2 year period. I fear that the charges you have faced though may well be allowed under the contract.

JACUSTOMER-189r4e7e- : Of course the documentation for the mortgage is technically correct in that it gives the Co Op the right to move me to a variable rate after 2 years and in this regard I am aware the odds are stacked heavily in their favour. My point was their withdrawal from supporting the equity scheme does not seem fair to the customer , a line of argument which ought to carry a bit more weight in the current financial climate. No mention either in your answer of my specific point regarding incurring costs related to the deed of postponement both now and in the future which are a significant and related impact of the Co Ops decision to withdraw support. In the deal I have had to go with offered by Woolwich the conveyancing fees were in theory covered as part of the overall package . The charge of £175 relates solely to deed of postponement. I was not incurring any deed of postponement charges through the original scheme with the Co Op and Places for People.
Expert:  Nicola-mod replied 3 years ago.
It seems the professional has left this conversation. This happens occasionally, and it's usually because the professional thinks that someone else might be a better match for your question. I've been working hard to find a new professional to assist you with your question, but sometimes finding the right professional can take a little longer than expected.
I wonder whether you're OK with continuing to wait for an answer. If you are, please let me know and I will continue my search. If not, feel free to let me know and I will cancel this question for you.
Thank you!
Customer: replied 3 years ago.
Nicola ..... Please can you cancel the question.
Thank You