Offset mortgage facility withdrawn without notice

by Readers Question

9:42 AM, 24th June 2014, 12 years ago 4

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Landlord News Landlords Questions

I have a offset mortgage on my home which I use to buy other properties, it is with Clydesdale Bank.

It works by paying the funds back to them when a property is mortgaged with the ability to re-draw at any time.

I have just phoned to re-draw funds and have been told that as of Monday this was no longer available!

Is there anything I can do?

Thanks

Nicholas

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Mark Alexander - Founder of Property118 Read Full Bio

Member Since January 2011 - Comments: 12199 - Articles: 1397

9:46 AM, 24th June 2014, About 12 years ago

Hi Nicholas

The following is a link to the complaints process of the Financial Ombudsman Service >>> http://www.financial-ombudsman.org.uk/consumer/complaints.htm

This is not the first time a bank has done this, Barclays/Woolwich did something very similar but they did give their customers notice – please see >>> https://www.property118.com/barclays-offset-mortgage-customers-take-heed/38254/
.

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Adam Hosker

Member Since August 2013 - Comments: 84 - Articles: 2

5:17 PM, 24th June 2014, About 12 years ago

Drag out your Terms and Conditions. Im sure it will say “we can stop it at any time” but such term should also include giving you a notice, but…

Offset mortgage facilities are a rare breed; I am surprised you have had yours for so long.

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Chris Amis

Member Since August 2013 - Comments: 109

9:23 AM, 27th June 2014, About 12 years ago

The worst thing is when they withdraw the offset facility, I suspect they do not transfer the cash to another account for you they knock it off the mortgage.

Always a risk having money saved in the same institution you lend from.

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Neil Robb

Member Since July 2013 - Comments: 357

2:06 PM, 29th June 2014, About 12 years ago

Hi

It would depend on what they said at the time of taking it out. I have one with Abbey national which became Santander. It was the life term of the mortgage so I have been able to do this for some time now and hope to continue.

If you still have the original paper work and see what it says.

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