SPML Mortgage - 2yr Fixed Term Ended - Help/Adivce Please!

Beetlebug1983

Hi,

Me and my OH took out a mortgage with SPML (i know) back in 2007. Our mortgage was fixed for 2 years, that term has now ended in August 2009. Our monthly payments are now calculated on the LIBOR Rate, so until December, the payments have come down. I don't know what the rate will be by Dec.

To put another spanner in the works, I have just recently applied for an IVA which has been accepted, and i will hopefully be debt free in 5 years time. I thought long and hard about this, and after weighing everything up - this was the best option for me.

Anyway, i was just wondering if anyone has had any experience with SPML/Capstone after their fixed rate has ended. Will we be able to negotiate with them - or will we just have to take the risk that our payments might rocket when the interest rates begin to go back up??

Agghh, advice much appreicated!!

Beetlebug

bgqs

Your payments will be lower in the short term as you are now on the Libor Rate which is low at present however, will undoubtedly go up in future.

midge61

Hi

SPML have different margins so you need to look at your original paperwork which will tell you.
Mine is 4.25% plus libor. The Libor rate they use it the 3 month one.
The margins vary fron 2% up to 7% I think if memory serves me right.

Whatever you do though make sure they amend the DD accordingly or you check whatever payment method you use. They are bu**ers for claiming you are in arrears when you are not once you are off the fixed period because they want you to remortgage and leave.

Beetlebug1983

Thank you midge61, i will do this!!

Cheers,
Beetlebug.