problem with my bank manager

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!