mortgage payment gone up by almost 300%

Wakey2008

unite79 wrote: »

Wakey, Sell the house in 20 years, Prices only ever Rise.QUOTE]

Selling the house is not an adequate repayment vehicle and should never be used by a responsible lender in any circumstance unless the orginal equity is massive ie £500k plus.

There was little equity in this property to begin with by the sounds of it.

Also selling the house leaves them with no where to live at that time unless they have amassed massive equity, which will itself - given that everything else will have risen - result in them having to either rent or downsize.

The simple fact is that cheap interest only options have been abused in the market by customers looking at the short term rather than the bigger picture.

The sh*t will hit the fan with these in the next 15 - 25 years as a hell of a lot of people who took the no questions asked mortgage borrowing offered by reckless lenders such as Northern Rock, realise they have no way of stumping up what they owe at the end of the term.

unite79

Wakey2008 - It was till 18 months ago -I was being a tad Cynical, hence the post Prices only ever rise!

You really think it will take 15-25 years for the !!!! to hit the Fan, me I am a little more pessimistic and would change the Years to Months and take the 1 form your first figure,

Gorgeous_George

The OP lives in a house that they cannot afford.

Sell up and rent. Move somewhere cheaper. Taking the negative equity now may be a lot less painful than taking the negative equity next year or the year after.

You need to sit down with somebody and make a plan. You will feel better for it.

GG

leejohnson2007

I share Babgermum's frustration as we also rise from 0.74% above base to a 4.84% SVR. As TMB are part of the Lloyds group, why aren;t they using Lloyds SVR which is 2.5%?

Mrs_Bumble

Badgermum,

If I am reading this correctly the payment hike that you are worried about is because you will be reverting to BM svr of 4.84%, which means that you will be switching to a variable rate and that the interest rate could go higher.

You say that the property is in negative equity, do you know the current estimated value? You can use sites like https://www.zoopla.co.uk to get an idea.

What is your approx balance
Remaining term
Your ages
Do you have any other credit committments
Have you been through the household income and expenditure and I mean a really thorough one.
Do you have any other income at all?
Is there potential to rent a room out?
What is the interest rate you are coming off of
When did you take the mortgage out?
Have BM offered you anything other than the SVR?

Let me know

Mrs_Bumble

unite79 wrote: »

DID TMB - ever offer a rate of 1.61% (Seems INCREDIBLY Low)

I have very happy clients on a tracker that is 0.17% above base! from around the same period of term that this self cert rate was put in place so it probably didn't look that competitive then!

ILW

Think the OP is getting a bit confused.
The header of this thread says the problem is all about an interest rate rise.
The actual problem is a fall in income.
Can't blame the bank for that.

davey001

Wakey2008 wrote: »

Absolute nonsense.

The chances are they were just on a special deal that has ended and they have reverted to the SVR. If this is the case then it is the customers fault as they should have been aware of what would happen with their payments when the deal ended and if they only took the mortgage because they could afford the initial rate, but not any rises, then they should never have been given the mortgage in the first place.

Lenders do not just put rates up for the sake of it, it will have been in the original conditions.

My advice to get publicity was to ensure fair treatment should matters get 'difficult'. The Banking Code states "We will deal quickly and sympathetically with things that go wrong and consider all cases of financial difficulty sympathetically and positively." Most (if not all) lenders don't... and the only thing that reminds them that they should is bad publicity.

Ever seen BBC Watchdog and heard about the travel company refusing to pay out on a valid insurance claim or a Bank threatening eviction after 2 missed mortgage payments who refuse to act sympathetically? All it takes is for that Bank or Travel Company to get one phone call from a BBC Watchdog researcher whereby an hour later the customer gets the news out of the blue (who has been struggling to come to to an understanding with their Lender) that that company was 'sorry for the letters/calls/threats of eviction' and will work with the customer sympathetically to resolve matters.

The only thing that forces responsible, fair and reasonable behaviour (whether the Lender is in the legal right or not) is publicity. Even if a special deal has ended and the Lender has ever legal right to up interest doesn't mean you shouldn't be treated properly and respectfully and all too often that doesn't happen.

There doesn't need to be a 'case to answer' on the part of the Bank for avenues to be used to level the playing field. When it's your home at stake then do anything you can to make sure you take the best route for you.. not one you are forced into by uncooperative financial organisations who have been quite happy to throw money at us for years without asking too many questions.

Just wanted the OP to be aware of their options.

Badgermum... are you on CAG or CCS forums?

denise.davis

We had a similar experience 3 years ago. Our fixed rate ended and fair enough we knew we would revert to base rate but in fact our interest is 2% above the base rate and we have been paying 9% interest for the last three years and cannot get another mortgage due to adverse credit. When I contacted the Company they sais they do not use the Bank of England rate as they are sub prime lenders. We were not aware that we were with a sub prime lender as our FA never told us this and yes I know we signed on the dotted line but I think we were well and trully done over. We have tried to find ways to help our dire situation but are only ever advised to 'give up' and sell which we really don't want to do.

Anyone got any useful suggestions?

maninthestreet

2% above base rate - that would be 2.5%, if you are referring to the current BOE base rate. So where has the 9% figure come from?