Loan term contract

[bettedavis]

Hi Guys

Is it standard that a loan contract says;

'Under this agreement, amount and type of fees and charges and when they are payable (including by imposing new fees and charges or changing the method of calculation of a fee or charge) may be changed without your consent'

If I am bound to it, that means, even though I am not supposed to pay any penalty for early payout during variable rate period, under the current contract terms, if the bank decides to introduce the penalty in future, I have to pay it?

TIA

 

[Aaron_C]

Yes that is standard because the banks' loan contracts make reference to their 'terms and conditions' booklets which change from time to time. They, however, have to notify you of the changes so you can elect at that stage to change loan providers if the new loan terms are unsatisfactory to you.

 

[Peter_Tersteeg]

A solicitor once said, "You'd be mad to sign a loan contract, but if you don't sign it, you won't get the money."

These contracts are not written in your favour and banks do change their fee structures. If this won't work for you, you'll have to pay cash for the property.

The good news is, banks are no longer allowed (by law) to charge early repayment penalty fees. This isn't something they can change.

 

[Rolf Latham]

Hi Guys

Is it standard that a loan contract says;

'Under this agreement, amount and type of fees and charges and when they are payable (including by imposing new fees and charges or changing the method of calculation of a fee or charge) may be changed without your consent'

If I am bound to it, that means, even though I am not supposed to pay any penalty for early payout during variable rate period, under the current contract terms, if the bank decides to introduce the penalty in future, I have to pay it?

TIA

Yup................. commercial reality tends to work pretty well to protectyou from that these days, and as Pete has alluded, the exit fee ban has helped a little.

Be aware though you can still get STUCK

low vals
new lmi on loans > 80 %
changing credit conds
changes in your conds

etc
etc

so choose wisely to start with

ta
rolf

 

[bettedavis]

Thanks All

Going through T&C for my loan contract, I was really upset to see how much it is in favour of the bank.

All I can read is that they can do whatever they want without my consent.

Good to know that at least I can pay it out without penalty.