nasty business
There’s an article in the New Zealand Hearald about a home owner who is wanting to break his fixed mortgage. Have a read of the article, but my beef is not with the break fee (which is what the story is about) but with the lack of customer service from the bank.
We have a situation here where the home owner knows that they will eventually default on the mortage which after all the processes are followed will cause the bank to have to sell the property in a mortgagee sale. The owner wants to break the fixed mortgage and re-fix at a lower rate. He is willing to pay a break fee that was advised in an email to the home owner, but the bank is now wanting a substantially higher break fee. This issue is currently before the banking Ombudsman.
If I was the bank I’d be looking long term. While I will miss out on interest initially I’d still retain the customer and his future business.
