Hi all, just looking for a bit of advise as to what avenues are open to me at the moment. Over the past couple of days, I've encountered a problem with my bank manager. The problem has existed over my current fixed (interest only rates).
I fixed my rates exactly a year ago on an investment property. All of my dealings with the him/her have been via email, as I live overseas. I have kept all of my emails as records. Anyway, last year when i was enquiring about the fixed rate. The manager gave me the quote etc. They quoted me the rate plus a $700 fee for breaking the loan or early repayment. Now, I specifically asked what the fee was for selling early and this is what i was given. On the day my rate got fixed, I sent an email saying, "as per previous correspondence, the fee for breaking my loan is $700. I'm assuming that this is for breaking the loan or selling early and the "what if" scenario, if rates go down". They were locked in and I never heard anything different.
I've had investment properties before, but it was the first time i have ever locked in rates. Since rates have retreated, I have emailed her about breaking my fixed rate. She has now come back to me with an adjustment fee of $5k plus. I'm absolutely livid. I have written the manager a lengthy email and attached our previous correspondence. I mentioned the fact that on the day it was locked in, I specifically mentioned the "what if" scenarios. I have let the manager know that I was not given full disclosure.
I don't believe I should be slugged with an adjustment fee when nothing was mentioned in any of our correspondence. AND, considering I had even emailed to confirm the previous quote and conditions. Now they are telling me it was a quote for a variable loan, which is clearly a mistake at their end. I am now in a positionn where if i don't make a decision on this situation, rates will go down (next week) and my adjustment fee will increase again. I'm also filthy that i am in this position because if i had known, I would have contacted the bank some months ago, when blind freddy could see that we were about to embark on a rate cutting cycle. Also, i have the problem now that if i sell my property within the next two years (an option i am considering) i will be slugged with an adjustment fee.
Hopefully I have made myself clear in this post. There is absolutely no way i believe i should pay this. I should have the right to change my rates as i see fit. Call me naive for knowing there will be an adjustment fee, but i did broach all scenarios ("what if") upon agreeing to it.
Now, the question is, rates will come down next week. Has the manager go the flexibility to ammend this? Do I have a leg to stand on with arguing my case? Should I just pay the adjustment so that I can take advantage of further cuts or lessen the cost of selling my property. Do i have legal grounds?
I'm not a happy camper at the moment!
- Forums
- Property
- problem with my bank manager
problem with my bank manager
-
- There are more pages in this discussion • 34 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Featured News
The Watchlist
1CG
ONE CLICK GROUP LIMITED
Mark Waller, MD
Mark Waller
MD
Previous Video
Next Video
SPONSORED BY The Market Online