SPML and Capstone Mortagges

luckyfool

SteveStone wrote: »

Does a lender have a limit as to how low this rate would go? My example is that if the base rate dropped again over the next few months and the libor rate followed to say 1% would this be the figure used or do these companies have a minimum rate as such?

If they don't have a collar or limit in their KFI and Mortgage Offer then according to the FSA they cannot impose one.

john1002

Luckyfool,

Thanks for this great post and explaining whatI thought would happen and you are right, we are on 2.84 above LIBOR so if it does reset to the 2% mark we will be on a better deal than what we could ever get on the high street at present with our 89% LTV. I love the way trackers only seem avaidable to 60% LTV. Our deal ends May.

Cheers

scrounger_2

My fixed rate ends in December this year,the ongoing problems with Capstone are making me rather nervous. My new fixed rate is supposed to start then, will this still happen?. Here`s hoping the "book" gets sold to a high street lender. Maybe even thats not a good thing!.

SteveStone

Has anyone heard anything about the latest rate Capstone are using for there mortgages for the next 3 months?

dcraggs

So on the basis that our fixed rate (at 6.44%) is due to come to an end on the 1st June and our original contract states that we are Libor plus 2.89% means that hopefully we are looking at (current Libor rate is 3.91 (from 1st Dec), with some stating it is likely to go down again).. so we are roughly going to be talking 6.8%.

It worries me that there is no information being passed onto us all though.

midge61

Hi

They usually write and tell you what your payments will be for the next 3 months about 2 weeks before the next payment is due.

kim_konnoris

just had letter from capstone,saying that our interest only mortgage will drop by another £225 from 1st april. yippee !! payments will be £615 per mth. so happy,and relieved. xxxxx {was paying £1065 up until dec 08,then they dropped to £845, now £615.

hope others with capstone get good news too xxxxx

aulora

Can ayone help me out please?
I am just about to come to the end of a 2 year fixed term Capital and Interest mortgage that I took out with SPML two years ago (now serviced by Capstone).
The 2 yr fixed term rate was 6.19% which made my monthly repayments £1023.
As I undertsand it, if I do not move to another lender and stay with Capstone, my mortgage rates will revert to 2.29% above LIBOR. LIBOR is currently, I think, at 0.68%, making the total interest I would pay 2.97%, which would amount to about £770 - which sounds good to me!

Question is, is this too good to be true? It seems to me like a good deal, and just as good as anything else on the market at the moment, though I realise that if LIBOR shoots up so will my repayments. I have read on various forums some nightmare stories about Capstone/SPML and am worried if I stay with them I may end up in trouble, or there may be some hidden expense that I do not know about (I don't feel I can trust them, though I have had very straightforward dealings with them so far - but I have paid repayments by DD and have never defaulted, so have had no cause to communicate with them)

I also have a broker looking into other deals for me at the moment, and I know he is going to try to sell me something - he seemed also surprised at the info I had from Capstone and said he thought it sounded too good to be true?

Should I bail out of Capstone or stay put for now?

Any advice/comments gratefully received. I don't know what I am doing with all of this!! Thanks.

Wutang_2

aulora wrote: »

Can ayone help me out please?
I am just about to come to the end of a 2 year fixed term Capital and Interest mortgage that I took out with SPML two years ago (now serviced by Capstone).
The 2 yr fixed term rate was 6.19% which made my monthly repayments £1023.
As I undertsand it, if I do not move to another lender and stay with Capstone, my mortgage rates will revert to 2.29% above LIBOR. LIBOR is currently, I think, at 0.68%, making the total interest I would pay 2.97%, which would amount to about £770 - which sounds good to me!

Question is, is this too good to be true? It seems to me like a good deal, and just as good as anything else on the market at the moment, though I realise that if LIBOR shoots up so will my repayments. I have read on various forums some nightmare stories about Capstone/SPML and am worried if I stay with them I may end up in trouble, or there may be some hidden expense that I do not know about (I don't feel I can trust them, though I have had very straightforward dealings with them so far - but I have paid repayments by DD and have never defaulted, so have had no cause to communicate with them)

I also have a broker looking into other deals for me at the moment, and I know he is going to try to sell me something - he seemed also surprised at the info I had from Capstone and said he thought it sounded too good to be true?

Should I bail out of Capstone or stay put for now?

Any advice/comments gratefully received. I don't know what I am doing with all of this!! Thanks.

If you have equity and improved credit rating then you could move but that rate looks good to me (and gives you a chance to overpay).

You may read various scare stories about them but as long as you make your payments on time then don't worry about it.

Treadmill

Make the most of it, 2.29% above LIBOR at one time would have been horrendous, but right now it is as good as and deal you will get on the high street.