Standard Life treating borrowers unfairly !

beecher

Teachertim wrote: »

I am afraid you are wrong, when compare to other mainstream lenders, 5.34% is among the highest, only Chelsea have higher I think ?

Most others are now around 4%

I'm not wrong, we're just talking about different things. It is high when compared to others, but historically it is not high at all. Once inflation kicks in, then it'll be high so I urge you to overpay by as much as possible, because I wouldn't want to be on the SVR when rates start climbing.

TankEngine

Not sticking up for Standard Life as I have a crappy mortgage with them, but Standard Life as a company may be making a profit, but is the sub-company Standard Life Bank? If you are not happy, then move mortgage provider if you can.

Teachertim

My point exactly !!!!! But I do not have the capacity to overpay enough because the SVR is currently high !!!!

If I was with, say, Lloyds banking group on 3.5% SVR my payments would be about £200 less than they will be on the Standard Life SVR. I could have used that £200 to overpay in addition to the £200 I already do, thereby making a total of £400 overpaying, IF Standard Life were being fair and doing what the government have requested them to and reduced rates. However, as they have not I can only overpay £200 a month, which currently is not enough to outrun the amassing negative equity. Therefore when inflation kicks in and their SVR creeps up, I, and hundreds like me, will be unable to remortgage as the overpayment will not have dented the negative equity so LTV will be too high.

It's a trap, as I said.

CPS

I too am with Standard Life and not loking forward to the end of my Fixed Rate but while rates are hisotrically low, you ned to overpay more to get yourself into a position to remortgage. Me and my OH earn just over £50k each and are able to overpay £500 per month and still have a good lifestyle. I dont know anything about your circumstances but surely you can afford to pay hundreds more a month??

ILW

Teachertim wrote: »

My point exactly !!!!! But I do not have the capacity to overpay enough because the SVR is currently high !!!!

If I was with, say, Lloyds banking group on 3.5% SVR my payments would be about £200 less than they will be on the Standard Life SVR. I could have used that £200 to overpay in addition to the £200 I already do, thereby making a total of £400 overpaying, IF Standard Life were being fair and doing what the government have requested them to and reduced rates. However, as they have not I can only overpay £200 a month, which currently is not enough to outrun the amassing negative equity. Therefore when inflation kicks in and their SVR creeps up, I, and hundreds like me, will be unable to remortgage as the overpayment will not have dented the negative equity so LTV will be too high.

It's a trap, as I said.

You may not like this, yes it is a trap but one which you willingly walked into. You say you cannot overpay due to the rate being too high. If you took out a mortgage without factoring the possibilty of rates rising to 8-10% you may be heading for real trouble. If you had aloowed for this you would be able to make much larger overpayments.

beecher

Teachertim wrote: »

My point exactly !!!!! But I do not have the capacity to overpay enough because the SVR is currently high !!!!

If I was with, say, Lloyds banking group on 3.5% SVR my payments would be about £200 less than they will be on the Standard Life SVR. I could have used that £200 to overpay in addition to the £200 I already do, thereby making a total of £400 overpaying, IF Standard Life were being fair and doing what the government have requested them to and reduced rates. However, as they have not I can only overpay £200 a month, which currently is not enough to outrun the amassing negative equity. Therefore when inflation kicks in and their SVR creeps up, I, and hundreds like me, will be unable to remortgage as the overpayment will not have dented the negative equity so LTV will be too high.

It's a trap, as I said.

If you can only overpay by £200/month with a household income of £80k there's something very wrong. I strongly suggest taking responsibility for this situation and getting yourself out of negative equity rather than blaming Standard Life. It is only a trap if you allow it to happen/

Teachertim

I give up, clearly it is perfectly acceptable to you all for one bank to ignore Government requests and what every other mainstream lender is doing. Obviously I should be grateful to them for fleecing me and everyone else who borrows from them.

System

What are standard lifes remortgage deals like? Will they let you remortgage with 100% LTV? The real trap is whether they let you remortgage or not, as some lenders do and some don't.

ILW

If I had a business with a load of customers that needed what I was offering and no other company wanted them as customers, I would be charging as much as I could possibly get away with. Its called business.

System

I'm pretty sure that's called a monopoly