by Birmingham Midshires transfering BTL

[Poj McDodge]

Hello everyone

 

I have a major issue with Birmingham Midshires (EDIT) me of £5k please take the time to read this and help me if possible or stop your self getting in the same situation.

 

My wife had a property (A) that was owned outright, in September last year we remortgaged it with a buy to let product to buy property (B) at auction as a cash purchase, this product had a 2 year tie in. The set up costs of this product were nearly £1000. The tenant in property A gave us notice early in December and we decided to sell this property.

 

We knew there would be early repayment charges so we checked our mortgage offer which had a section about moving the mortgage stating.

 

'What happens when you move house?

 

You can keep this product if you move to a new property and take out a new mortgage with Birmingham Midshires, provided that the new mortgage is for the same amount or more and is taken out within 6 months of repayment of this loan. If this occurs, any early repayment charges, with not be payable. However, if the new mortgage is taken out in different names we will not waive or refund these early repayment charges without the written consent of all original borrowers.

 

What we wanted to do was transfer the mortgage to another property © which has a mortgage with different company which was coming to an end of a tie in period. We telephoned the company to ask if this was possible and we were told yes, from this information we put the property A on the market. The mortgaged properties (A & C) are only in my wife's name.

 

We completed the sale on property A in March and paid off the mortgage plus ERC charges of £3997.

 

We are now ready to transfer the mortgage to property C and phoned the mortgage company to get the wheels in motion. To our disbelief we were told we can't do this because they have changed their criteria on BTL's. It is a requirement now that the person taking out the mortgage has to earn £25k per annum. We have had no information regarding this and have been on the phone to several people who are giving different times when this change took place.

 

It seems they have got us by the short and curlies because the following sentence was under the paragraph above

''If either the scheme or your circumstances change, you may not be able to keep this product, and any early repayment charges will be payable.''

 

We intend to take this to the FSA but first we have to follow the companies complaints procedure.

 

Does anyone have similar experiences?

 

Can anyone give me some advice ?

 

Do I have any chance of not losing out?

 

I would appreciate any information.

 

Thanks

 

Poj

[gizmo111]

Hi,

 

I have just hada look on their website and cannot see anything i ntheir lending criterai that mentions £25k minimum earnings on a BTL loan. I can't seem to copy the link so try BM Solutions and folow the lending criteria pages.

[livelylad]

I have edited your title to remove the potential libellous coment.

[Poj McDodge]

Sorry about the title, but I am feeling a bit angry about the situation.

 

Gizmo, thanks for the reply. I followed the link but can't seem to download the info on buy to lets, I will do it in work on monday. Is there any significance in there not being any mention of the minimum earnings? Should I take note of the date / keep a copy of the pdf file to use in the future?

[gizmo111]

Sorry about the title, but I am feeling a bit angry about the situation.

 

Gizmo, thanks for the reply. I followed the link but can't seem to download the info on buy to lets, I will do it in work on monday. Is there any significance in there not being any mention of the minimum earnings? Should I take note of the date / keep a copy of the pdf file to use in the future?

 

I can understand your anger.

 

you need it in writing about hte change really, but I would ring a broker as a new BTL buyerandask them for a quote, criteria etc, to start buliding some evidence.

 

Have you put your complaint in writing? In my exp BM are very good at resolving them -

[purplefile]

I cant give you the link but I can confirm that BM have a minimum income of £25K for this transaction.

BM now have this as a min income requirement for all BTL applications. This has been introduced since September 06 but not sure when exactly.

 

I will try & remember to try to find out next week.

[gizmo111]

I cant give you the link but I can confirm that BM have a minimum income of £25K for this transaction.

BM now have this as a min income requirement for all BTL applications. This has been introduced since September 06 but not sure when exactly.

 

I will try & remember to try to find out next week.

 

Thanks if you can - my mortage and BTL are with BM, and I have friends with incomes of £15K who have takn BTL with then in the last year or so.

[Poj McDodge]

I have found thier latest criteria for BTL, February 2007 and it does stste a minimum income of £25k.

 

http://www.bmsolutions.co.uk/_pdf/btl_criteria.pdf

 

We have nothing in writing so far, we dealt with the companies complaints department last thing Friday. My wife was told by one person on the sales team that they have had about five people in the same situation but doesn't know the outcome as its past on to the complaints team.

 

We renewed another BTL mortgage with them in January but the new criteria was not mentioned.

 

Was it up to us to check if the criteria changed during the chain of events?

[ledgejigsaw]

As per mortgage regulations you would of been notified within 30 days of any change in product (this includes interest rates and any product amendments)

 

mortgage companies would usually say that it is your responsibilty to make sure that the information related to the account is thoroughly read and understood, it would be your responsibilty

 

but would like to know the outcome of this complaint