14:12 PM, 11th May 2020, About 2 years ago 17
I have received a letter from BM Mortgages asking very intrusive questions about how I will repay an interest-only BTL mortgage I have with them and gently threatening to put me on a repayment mortgage (‘ask’ is the way they put it) if I cannot satisfy them that I have an adequate repayment plan in place.
The redemption date is well over six years away. I have had other BTL interest-only mortgages with BM that were redeemed either by the sale of the property or by me paying them down as the redemption date approached but this is the first time they have demanded to know how I will pay one off.
I am not in arrears and am complying with the T&Cs of the mortgage. I cannot see anything in the T&Cs that requires me to provide the information they want (endowment policies, pension plans and – most intrusively – the amount of my savings and investments and who they are with). Neither can I see anything that allows them to forcibly put me on a repayment mortgage. On the contrary, one of the provisions of the loan offer states, “You will need to make separate arrangements to repay this [the loan]. Birmingham Midshires does not know, or need to know details of these arrangements.”!
I am reminded of the shenanigans Mortgage Express got up to and am wondering if BM are trying it on as well. I am tempted to ignore them, but at the same time wary about there being some small print somewhere that allows them to declare ‘force majeure’ on the agreed terms of the loan. I don’t relish having to pay their costs or any penalties.
As it happens, I am in the fortunate position of being able to repay the loan, but as the product is a tracker at base rate plus 0.4% I’m clearly more focused on paying down other loans with higher interest rates.
Has anyone received a similar letter, and what did they do about it?
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