Mortgage Advice

kevin71

I am with the Bank of Scotland; My tracker rate has recently come to an end and I have been placed on a SVR. I attempted to go onto another tracker rate with them. However, I was informed that I was not eligible for their other discounted rates because I was on a self cert mortage. Being on a self cert mortgage limited my ability to transfer my mortgage to a better rate. This is despite my mortgage being at 60% LTV and me not ever defaulting on any loan payments.
I believe this to be an absurd situation whereby I can't transfer my mortgage to a more afford rate because of affordability. However, they want to keep me at a rate which results in me paying out more each month.
If the concerns were truely about affordability, hows is it better to keep me on the higher rate of payment?
If anyone can advise further your assistance will be helpful!!!

_Andy_

They have no obligation to provide any further deals.

That said, with an LTV of 60%, could you not look at other lenders?

Berkshiregirl

kevin71 wrote: »

I believe this to be an absurd situation whereby I can't transfer my mortgage to a more afford rate because of affordability. However, they want to keep me at a rate which results in me paying out more each month.
If the concerns were truely about affordability, hows is it better to keep me on the higher rate of payment?

It will be because from their point of view you're too big a risk to offer a product where they're making a low margin. Better for them to have you on a product that makes them more money if they're going to take the risk on you. It doesn't make sense from your side as the customer but they're tightening their belt on lending and will only give the best deals to the people who present the lowest risk factor.

Mrs_Bumble

So does your income support you remortgaging away?

kevin71

Berkshiregirl wrote: »

It will be because from their point of view you're too big a risk to offer a product where they're making a low margin. Better for them to have you on a product that makes them more money if they're going to take the risk on you. It doesn't make sense from your side as the customer but they're tightening their belt on lending and will only give the best deals to the people who present the lowest risk factor.

I appreciate that banks want to reduce their risk, especially in this economic climate. However, with 60% LTV, how much of a risk are they really taking? surely commonsence should prevail.

kevin71

Mrs_Bumble wrote: »

So does your income support you remortgaging away?

In process of looking at other lenders!!!