Barclays delayed porting our mortgage but we still have to pay £13,000

In a recent interview, Zoe Wood candidly recounted her frustrating experience with Barclays as she tried to port her mortgage after relocating. The process was riddled with paperwork delays that almost jeopardized her entire property chain, leading her to explore alternative lending options.

“We first reached out to Barclays for a new mortgage offer in February,” Zoe explained. “We planned to complete the process by the end of April to keep everything on track, but by mid-April, we were increasingly anxious about the lack of movement.”

Despite making repeated requests for updates and necessary documents, Zoe found Barclays’ delays baffling. “Our financial situation is quite standard and our loan-to-value ratio is below 50%,” she noted.

Feeling desperate, her broker suggested applying for a mortgage with Halifax as a backup. In a surprising turn of events, Halifax managed to issue a new mortgage offer in just six days.

Following these challenges, Zoe lodged a formal complaint against Barclays, which was upheld. “However,” she added, “instead of waiving the early repayment charge (ERC) of over £13,000, they initially offered us only £200. They later increased their offer to £800, but that still doesn’t come close to covering our losses.”

Zoe expressed her disappointment, feeling let down by Barclays. In their correspondence regarding her complaint, the findings mentioned “slight delays caused by us,” but nothing substantial, as they insisted they were merely seeking financial information for affordability checks.

“I asked Barclays to reconsider their position,” Zoe said. “They acknowledged the delays but insisted they couldn’t waive the ERC since we chose to switch lenders during the penalty period.”

She emphasized that the ERC is a standard aspect of mortgage agreements and remarked, “My broker should have realized that switching lenders within that timeframe was risky, especially since Barclays did eventually come through with an offer, albeit very late.”

Given the potential financial implications, Zoe suggested that it might be prudent to escalate the issue to the Financial Ombudsman Service for further resolution.

Zoe’s experience underscores the complexities of moving homes and the critical importance of understanding mortgage terms.