Beware: Five Million Tracker Mortgages at Risk

hangingwood

I have jsut recieved the same letter from Norwich & peterborough saying I will automatically have my rate risen from 1.25 over base to 3.4 over base.
Currently borrowing £650k. on a commercial loan
what should i do?

Andy_Davies

The_whistleblower wrote: »

Dear Reader,
I am writing to you as a concerned industry insider.
If you are one of the millions of borrowers currently holding a so called “life-time, full-term, guaranteed”, tracker mortgage then please take note. If you are sitting smugly thinking that you have got nothing to worry about, then think again. This time last week, thousands of Norwich & Peterborough customers were in the same position as you are now and look what happened to them last week!
The Facts
· The Banks and the Building Societies are hard up cash wise. £200 billion has been pumped in by the Government into the black hole and they still need more.
· Out of approximately 11 million mortgages, 5 million are tracker based. This trend is going up.
· It is hurting the financial institutions very badly that these “Bank of England based+” Tracker mortgages are not making them enough money. The low interest rate environment will continue into 2010/11, so more pain for them.
· These institutions are not there to help you! They are there to make money for themselves and for the fat cat bonuses.
· I can tell you from the inside, that they are vigorously looking at ways to make changes to the tracker mortgages term and conditions. Most have hidden “the right to raise interest rates in exceptional circumstances conditions” in their small print.
· The Norwich & Peterborough “test-case”, this scrupulous building society is the first to blink.
· This Society has given its borrowers 10 working days notice, and will forcefully increase their “life term, Bank of England based” tracker mortgages by 300-400%.
· The others are watching like a pack of wolves ready to pounce, If this one gets away with it without a challenge the others will follow, I guarantee. A legal precedent will be set.
What does the Law say about this ?
I am glad to say we still have statutory laws to safeguard the consumer from these practices. But a law sitting on a shelf is no good to any borrower facing severe financial hardship. The Law has to be enforced, otherwise these financial companies will continue to flout the laws that safeguard the consumer.
I would like to draw your attention to two very relevant legislations. These are: Unfair Relationships, Enterprise Act 2002, within it, Part 8 has enforcement powers, which can seek redress. More recently a European wide law has come on to the statute books, namely Consumer Protection from Unfair Trading Regulations 2008.
The Office of Fair Trading (OFT) has been given the Powers to enforce these Laws. But the OFT will not act at the whim of a few complaints. They will only act if a significant number of people formally complain to them.
What can be done about this ?
· Kick up a huge fuss
· Get in touch with the Media, Norwich & Peterborough are trying to enforce these changes quietly through the back door over the busy Christmas period. Not a single news item has touched upon the significance of this story to millions.
· Inform the Treasury Select Committee members in Parliament. These are the MPs who are supposed to protect Public interest, and have passed these Laws.
· Get in touch with the Office of Fair Trading, they have the powers to act. Telephone number: 08457 22 44 99 or 020 7211 8000
· Inform the FSA (although a bit toothless)

Collectively the consumer will prevail, individually they will tick us off!

How about a link to some stories about this??