Offset mortgage facility withdrawn without notice

by Readers Question

9:42 AM, 24th June 2014
About 5 years ago

Offset mortgage facility withdrawn without notice

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Offset mortgage facility withdrawn without notice

I have a offset mortgage on my home which I use to buy other properties, it is with Clydesdale Bank. Offset mortgage facility withdrawn without notice

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



Comments

Mark Alexander

9:46 AM, 24th June 2014
About 5 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 >>> http://www.property118.com/barclays-offset-mortgage-customers-take-heed/38254/
.

Adam Hosker

17:17 PM, 24th June 2014
About 5 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.

Chris Amis

9:23 AM, 27th June 2014
About 5 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.

Neil Robb

14:06 PM, 29th June 2014
About 5 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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