GMAC SVR trap!

soverign33

My mortgage was originally with GMAC and passed to Mortgage Express, like every other GMAC customer. My GMAC contract says I will be charged at 2.05% on top of current LIBOR rates at the end of my fixed deal (4.18% as of today) making a total of 6.03%.

Yet when I rang them today they stated my rate would be 7.75% and were unable to tell me why, except it was set against the LIBOR RATE, which I knew already and frankly, the guy on the end of the phone may as well have been selling double glazing...

I have never signed a new agreement with Mortgage Express for my mortgage and want to know

1) Are Mortgage Express Legally bound to stick to my GMAC agreement, and

2) If they are, how do I get them to enforce it?

and 3) How can MX still continue to charge this high rate when they are supposedly 100% wholly owned by the Government, with Darlign calling daily for all interest rate cuts to be passed onto the borrower immediately?

Any and all help greatly appreciated, my mortgage will increase by £400 in a few weeks if I have to pay 7.75%.

soverign33

sorry, the current 3 month LIBOR is 3.98%, giving me my total of 6.03%.

poppy10_2

Mortgages linked to LIBOR generally only have their rates adjusted every three months or so - you'll need to wait a while for the recent dramatic decrease in LIBOR to be reflected in your mortgage rate

geoffky

What is bloody wrong with people in this country? They make personal decisions and then when things do not go their way.They jump up and down screaming for a bailout or to be treated different.....grow some balls for Christ sake..:mad::mad:

BIG BOSS=BIG BABY

Nationalist

A mortgage rate of 8-10 percent is the norm. We are living through a period of abnormally low interest rates. In the Tory decades prior to New Labour a 7% loan would have been considered a good deal!

thebigboss_2

I have two BTL's one has stayed with GMAC and the SVR is currently 5.75% the other was sold on to Oakwood homeloans who have now reduced their SVR to around 4%.

I think pressure should be put on GMAC to reduce in line with other lenders instead of their "sit tight and recoup" attitude. i took a lot of stick from industry professional last time I mooted this being told "you knew the risks when you took it on, blah blah blah etc....." but I don't care! This is a consumer forum and if this is the way to get lenders to reduce their SVR so be it.

So come on GMAC SVR people, make your voice heard, call or write to GMAC asking them WHEN they're going to do it!

dunstonh

Remortgage away from GMAC if you dont like it. They take higher risk borrowers and are quite within their rights to charge higher rates for it. If you are not higher risk any more then there are still plenty of lenders who will take your business. If you are still higher risk then thats what you get.

notthinking

bigboss, this is a consumer site but with BTL you are a business customer not a regular consumer.

As already asked do you pass on the rate cuts to your tenants?

thebigboss_2

There's nothing wrong with people in this country geoff KY, they are learning how to complain, how to leverage, how to lobby, how to use CONSUMER forums to complain and try to make things move their way which is what everyone does in life. I, like many others, am no longer content to keep schtum, if I can get a result by making a noise, I will! If you don't like it, tough, don't read consumer forums because, funnily enough, you tend to get a lot of people complaing on them! Funny that isn't it!? The banks got bailed out, not the consumer so grow some of your own!..:p

geoffky wrote: »

What is bloody wrong with people in this country? They make personal decisions and then when things do not go their way.They jump up and down screaming for a bailout or to be treated different.....grow some balls for Christ sake..:mad::mad:

BIG BOSS=BIG BABY

thebigboss_2

I am an individual with two But to Let investment properties which I am currently renting out at a loss. How does that make me a business? Is anyone with investments a business? what is it on this site with anti consumer sentiment, it's a consumer site to share knowledge and leverage action, if you don't get that and don't like the idea of people standing up for what they believe in don't read it. As you may notice, more people in the poll agreed with my ORIGINAL POINT than disagreed, the government should be even handed when it comes to putting pressure on lenders to lower their SVR. I wasn't taking it an deeper than that and still stand by that view, more thinking than not thinking really.....

notthinking wrote: »

bigboss, this is a consumer site but with BTL you are a business customer not a regular consumer.

As already asked do you pass on the rate cuts to your tenants?