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    • 9 monkeys dancing
    • By 9 monkeys dancing 17th Jul 17, 1:31 PM
    • 10Posts
    • 0Thanks
    9 monkeys dancing
    default help please!
    • #1
    • 17th Jul 17, 1:31 PM
    default help please! 17th Jul 17 at 1:31 PM
    I'm currently with Santander and going to have a product switch shortly, last year my wife defaulted on her credit card which she is currently paying back, somehow ( even though they don't do credit checks), the bank saw there was a default and wacked up the interest by a stonking 2.7% which has basically doubled my mortgage. This has now pitched us in as mortgage prisoners as no other bank will lend to us due to the default.


    Can anyone offer any advice at all???
Page 1
    • debtisnotme
    • By debtisnotme 17th Jul 17, 7:25 PM
    • 103 Posts
    • 78 Thanks
    debtisnotme
    • #2
    • 17th Jul 17, 7:25 PM
    • #2
    • 17th Jul 17, 7:25 PM
    Well I can tell you that the reason your mortgage rate has risen is not because your wife has a default given that you've not as yet changed your mortgage. Could it be that your fixed rate has ended and you have moved to their standard variable rate which happens to be 2.7% over your fix?
    Debt on 25/5/17
    Mortgage £61,999 £59,335
    Secured loan approximately £20,000 £19,353
    Unsecured debt in DMP with Stepchange £38,887 £37,763
    • debtisnotme
    • By debtisnotme 17th Jul 17, 7:27 PM
    • 103 Posts
    • 78 Thanks
    debtisnotme
    • #3
    • 17th Jul 17, 7:27 PM
    • #3
    • 17th Jul 17, 7:27 PM
    Looks like their SVR is currently 4.49% does that add up?
    Debt on 25/5/17
    Mortgage £61,999 £59,335
    Secured loan approximately £20,000 £19,353
    Unsecured debt in DMP with Stepchange £38,887 £37,763
    • debtisnotme
    • By debtisnotme 17th Jul 17, 7:29 PM
    • 103 Posts
    • 78 Thanks
    debtisnotme
    • #4
    • 17th Jul 17, 7:29 PM
    • #4
    • 17th Jul 17, 7:29 PM
    Seems like you asked this question a couple of months ago

    http://forums.moneysavingexpert.com/showthread.php?p=72561052
    Debt on 25/5/17
    Mortgage £61,999 £59,335
    Secured loan approximately £20,000 £19,353
    Unsecured debt in DMP with Stepchange £38,887 £37,763
    • 9 monkeys dancing
    • By 9 monkeys dancing 18th Jul 17, 8:07 AM
    • 10 Posts
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    9 monkeys dancing
    • #5
    • 18th Jul 17, 8:07 AM
    • #5
    • 18th Jul 17, 8:07 AM
    Its gone to 4.29%, which is below the SVR. ( from 1.59%).
    • 9 monkeys dancing
    • By 9 monkeys dancing 18th Jul 17, 8:10 AM
    • 10 Posts
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    9 monkeys dancing
    • #6
    • 18th Jul 17, 8:10 AM
    • #6
    • 18th Jul 17, 8:10 AM
    I did, but as you can see no-one replied, so I thought I'd ask it again.
    • zx81
    • By zx81 18th Jul 17, 8:11 AM
    • 13,158 Posts
    • 13,471 Thanks
    zx81
    • #7
    • 18th Jul 17, 8:11 AM
    • #7
    • 18th Jul 17, 8:11 AM
    It looks like you've completely misunderstood the situation.
    • 9 monkeys dancing
    • By 9 monkeys dancing 18th Jul 17, 8:32 AM
    • 10 Posts
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    9 monkeys dancing
    • #8
    • 18th Jul 17, 8:32 AM
    • #8
    • 18th Jul 17, 8:32 AM
    Well I gave Santander a call, and they saw the default and said that's why we haven't given you a better rate.
    • EssexHebridean
    • By EssexHebridean 18th Jul 17, 12:02 PM
    • 7,755 Posts
    • 40,170 Thanks
    EssexHebridean
    • #9
    • 18th Jul 17, 12:02 PM
    • #9
    • 18th Jul 17, 12:02 PM
    Do they by any chance offer a similar "loyalty discount" off the SVR to that which other lenders do? If so that might explain the slight difference.

    Something to bear in mind: the rate you are on currently is now a rather more realistic rate than the one you were on before your fix ran out. The rates that are about at the moment are going to catch one HECK of a lot of folk out when they start to increase - my advice to anyone getting a mortgage currently is to ensure that they overpay - or at least set aside money up to the level of where the payments would be on the SVR - as these current low rates will not be about forever.

    There is some confusion here though I think: If I'm reading this right:
    You were on a fixed rate which ended this month.
    Have you changed product? Or are you now just paying the SVR on your old mortgage product?
    Have you talked to Santander about moving onto a new Fixed rate product? If so what have they said? I take it you do realise that you do have to apply to be put onto a new fix?
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • 9 monkeys dancing
    • By 9 monkeys dancing 19th Jul 17, 9:15 AM
    • 10 Posts
    • 0 Thanks
    9 monkeys dancing
    Hi,


    It ends in September, I have checked my current options for change of product on line, they are offering 3.99% for 2 years and 4.29% for 3/5 years ( all fixed).


    I'm currently on a 2yr fixed at 1.59%. my LTV is 43% we put down a deposit which was about a 1/3 of the initial value of the property. The property is now valued at £1 million. They said due to the default on the credit file this is the best they can offer, ( even though they apparently do no credit checks).


    Essentially the mortgage will now double.
    • sourcrates
    • By sourcrates 19th Jul 17, 10:11 AM
    • 11,893 Posts
    • 11,395 Thanks
    sourcrates
    It ends in September, The property is now valued at £1 million.
    Originally posted by 9 monkeys dancing
    £1 Million ?

    Sell it, move to Yorkshire, live like a king !!!!
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Legal advice see : http://legalbeagles.info/
    • EssexHebridean
    • By EssexHebridean 19th Jul 17, 11:02 AM
    • 7,755 Posts
    • 40,170 Thanks
    EssexHebridean
    Time to find a broker and see what deals can be had elsewhere in that case, I'd suggest? However - a word of caution. If you DO get another very low rate on a fix, then start planning now for what you will do when that fix ends as those deals simply won't be about then. If I were you I'd start working towards a situation where you CAN afford to pay a lot more than you are currently.

    Out of interest, in the 13 years it took us to get rid of our mortgage, the lowest rate we had at any point was 4.39%. The current very low rates are simply not sustainable for much longer so make sure that whatever product you end up with, it WILL be affordable for you when the fix finishes.
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
    • 9 monkeys dancing
    • By 9 monkeys dancing 19th Jul 17, 1:52 PM
    • 10 Posts
    • 0 Thanks
    9 monkeys dancing
    Its affordable, but a raise of 2.67% is completely unfair, I didn't put down a huge deposit to become a mortgage prisoner, especially by an awful foreign bank.
    • EssexHebridean
    • By EssexHebridean 19th Jul 17, 4:54 PM
    • 7,755 Posts
    • 40,170 Thanks
    EssexHebridean
    I hate to say it but perhaps it would have been a good plan to have thought this situation through before your wife defaulted on the card. I'm afraid with the default there the increase is NOT unfair in the eyes of the lender - you're now a potential bad risk to them. Unless you can come up with a convincing argument why the default should be removed, you now need to deal with the situation you have and I suspect chalk it down to experience. As I say, I suspect a broker and a change of lender will be the best way forwards for you, but with your current fix ending in September I'd crack on with that pretty fast if I were you. Personally I'd also look to fix for 5 years now so that by the next time you need to worry about it all the default will be gone.

    A further point - it is not the "awful foreign bank" holding you "mortgage prisoner" as you put it - it's the default - unless of course the credit card was also issued by Santander? If so there's your answer about how they know about it...
    MORTGAGE FREE 30/09/2016
    Sainsbugs 0% card: 22/12/16 £1229.00/£504.92 (29/08/17)
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