Mortgages

TSB waives ERCs amid product transfer delay

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11th July 2018
"We will support customers if they want to move to another provider, for example, waiving applicable early repayment charges."

TSB has confirmed that it will remove early repayment charges for certain borrowers wishing to move to a new mortgage provider after ongoing issues with its product transfer service.

It also promised to refund the difference in interest charges between its standard variable rate and the fixed rate that borrowers could have otherwise secured.

The lender temporarily turned off its mortgage transfer capability in April and the service is yet to resume amid ongoing IT issues at the Bank.

A TSB spokesperson said: “We would like to apologise for the delay in turning our mortgage product transfer capability back on. We know how frustrating this must be but we would like to reassure our customers we are working as hard as we can to reinstate this, and no customer will be left out of pocket as a result.

“Where an existing customer wants to move to a new mortgage product with TSB but we cannot fulfill their product transfer needs at this point in time, we will fully refund the difference in interest charges between our standard variable rate or homeowner variable rate (that they will move onto temporarily) and the fixed rate they could have otherwise secured until we can complete the product transfer.

“We also appreciate that some customers may not want to wait. Our advisers can talk them through alternative options available to help meet their borrowing needs (for example via a broker) and we will support customers if they want to move to another provider, for example, waiving applicable early repayment charges.

“We recommend that any customers who may be impacted by the temporary withdrawal of product transfers get in touch with us as soon as possible.”

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