Mark Hollands, a director of independent mortgage broker, London Money, answers the question:-
We have noticed that the term of our mortgage has changed without our agreement When we have challenged this the company told us that due to company policy we do not have to sign anything for them to alter the terms of our mortgage.
We have never missed any payments and was expecting the mortgage to be paid off next year instead they have extended the terms without our knowledge? Can they do this and would we be able to challenge this in court.
It is difficult to answer this question without further information from you. The only reason I can think of that a lender would want to extend the term of your mortgage is if you do not have the means to repay the loan in full at the end of the original mortgage term that was agreed. It sounds to me however that the opposite is true and that you can and will intend the repay the loan next year.
Whilst the lender does reserve the right to alter the terms and conditions the real issue here is that you will be disadvantaged by virtue of paying more interest by having the loan extended. I would go back to the mortgage company and ask why they have extended the term. If no satisfactory answer is given then lodge a formal complaint and they will then have 8 weeks in which respond. If after that you are still not happy you can escalate the matter further by taking the complaint to the Financial Ombudsman.
Alternatively, and if the outstanding mortgage is small, you could take matters in to your hands and repay the mortgage early provided there were no redemption penalties to pay an thereby deprive them of the interest altogether.
If you have a question for Mark go to the Myfinances.co.uk's Ask the Mortgage Expert section
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