MSE News: Mortgage blow as building society hikes SVR

Thrugelmir

poppy10 wrote: »

They can't increase the BMR more than the contracted 2% above Bank of England base rate. But there's nothing to stop them introducing a new, say "normal mortgage rate" NMR which had no such restrictions.

They aleady have a SMR with no restrictions

baby_boomer

I'm sure no-one educated on MSE ever thought mutuality was about fairness or treating members equally .

shortben

I have checked my Key Facts Document and it states the same no more than 2% above the BOE Base Rate guarantees for the BMR as there website.

If they were to put the BMR rate up then I would suggest that would be mis-selling by Nationwide who arranged my mortgage???

hes109

shortben wrote: »

I just phoned and they clarified that they cannot, although I don't really trust the guy as much as people on this site. It seemed to be more opinion than fact.

I am one of the lucky ones on 2.5% rate, although my property is in negative equity so I don't really have much of a choice.

I would be stuffed if it was to rise significantly. I was paying £880 a month on a £120,000 mortgage previously, its now £560.

Here's hoping Mervyn and hs cronies keep the rate low for a while.

This is what Skipton told me when I called them to clarify another SVR situation and wasn't convinced. Those that took out a fixed rate mortgage have a minimum interest rate of 5% when it reverts to SVR no matter what the BoE rate is and I needed to make sure this didn't happen to me.

Re your mortgage repayments. I thought I was paying a lot but now I don't feel so bad. My repayments are £834 on a £141000 mortgage, but I'm on fixed 5.79%. At least you can benefit from a lower rate, even if you're in negetive equity.

VIGILANT22

what???......could you pls explain the point of yr post!

shortben

hes109 wrote: »

This is what Skipton told me when I called them to clarify another SVR situation and wasn't convinced. Those that took out a fixed rate mortgage have a minimum interest rate of 5% when it reverts to SVR no matter what the BoE rate is and I needed to make sure this didn't happen to me.

Re your mortgage repayments. I thought I was paying a lot but now I don't feel so bad. My repayments are £834 on a £141000 mortgage, but I'm on fixed 5.79%. At least you can benefit from a lower rate, even if you're in negetive equity.

I dont understand what your saying re Skipton...

Yeah, £880 and a £50 factor fee for a flat barely worth £100,000

Was a nightmare. I paid £140,000 for it as well The buy to let market crashed causing major problems for legit flat owners in my area.

Thankfully I have moved to the Nationwide BMR (SVR) at the right time and my payments dropped £300+ to £560.

Fingers crossed it stays that way

Thrugelmir

shortben wrote: »

I have checked my Key Facts Document and it states the same no more than 2% above the BOE Base Rate guarantees for the BMR as there website.

If they were to put the BMR rate up then I would suggest that would be mis-selling by Nationwide who arranged my mortgage???

Read your full mortgage Terms and Conditions, not the Key Facts Document.

Key Facts are just that, nothing more.

In future read documents before signing them as its the small print that matters.

shortben

Thrugelmir wrote: »

Read your full mortgage Terms and Conditions, not the Key Facts Document.

Key Facts are just that, nothing more.

In future read documents before signing them as its the small print that matters.

I realise this but the key facts are there for a reason.

I also have it in my Mortgage Offer, I have just checked. Surely that is worth something?

The basic thrust of me being on here is to establish IF Nationwide have this clause??

VIGILANT22

shortben wrote: »

The basic thrust of me being on here is to establish IF Nationwide have this clause??

This is a consumer site for discussion nothing else, no advice only opinion...

hes109

shortben wrote: »

I dont understand what your saying re Skipton...

Yeah, £880 and a £50 factor fee for a flat barely worth £100,000

Was a nightmare. I paid £140,000 for it as well The buy to let market crashed causing major problems for legit flat owners in my area.

Thankfully I have moved to the Nationwide BMR (SVR) at the right time and my payments dropped £300+ to £560.

Fingers crossed it stays that way

Re Skipton If you take a fixed rate mortgage with them now, they have set a clause saying the minumum SVR you would pay when the fixed rate ends is 5%. I needed to clarify this didn't happen to me since I took my mortgage out under different terms. At the same time they clarified that they can't lift the SVR ceiling as my mortgage offer states it as a guarantee, yet it has happened because of these 'exceptional circumstances'. The point I was trying to make is that no matter what Nationwide say now, they may have small print in your mortgage offer stating otherwise.

Re Your mortgage payments...I also hope it stays that way for you.