Lenders Increasing SVRs

captainhaggis

Hi all,

I'm a little confused.

How can lenders just, willy nilly, change the SVR offered to existing customers?

Don't all (or most) mortgages have information about the rate onto which customers will switch at the end of a fixed term? How can the lenders possible just switch what's written in black and white?

I've got a mortgage about to switch to SVR. The mortgage paperwork says I'll go to SVR of "2.49% above BBBR, currently XXXXXX".

How can lenders basically write off what's been agreed and enforce their own, higher, SVR?!

VIGILANT22

Some lenders have "exceptional circumstances" written into the T&C's...Skipton for example are one...........

http://www.skipton.co.uk/mortgages/svr/ourSvr.aspx

pablo1827

I totally agree with you captainhaggis, this exceptional circumstance clause is just another way to fleece us.Are there any such clauses written into the T&Cs of Fixed and Tracker mortgages,will this be the next move by the mortgage providers. I wonder if i can claim exceptional circumstance's and cut payments to my provider due to redundancy.

shortben

What other companies have this clause?

VIGILANT22

shortben wrote: »

What other companies have this clause?

Hmmmm....It will be in the T&C's!

VIGILANT22

pablo1827 wrote: »

I totally agree with you captainhaggis, this exceptional circumstance clause is just another way to fleece us.Are there any such clauses written into the T&Cs of Fixed and Tracker mortgages,will this be the next move by the mortgage providers. I wonder if i can claim exceptional circumstance's and cut payments to my provider due to redundancy.

How can you say it is the T&C's "to fleece us". Did you say that when you eagerly gained your mortgage or did you check! Yes, some people are experiencing difficulties, however did they take precautions and adequately protect/provide for themselves..This is called taking responsibility for yourself...If people aren't in a position to protect against liabilities then they shouldn't take then on in the first place. Nobody was forced to become a home owner, this was a personal decision. Therefore the responsibilty lies with each individual.

MarkyMarkD

Captainhaggis's revert rate is not really an SVR at all, it's a lifetime tracker rate. In which case, normally, it cannot be varied.

But SVRs themselves are, by definition, completely variable at the behest of the lender. That's what "variable" means.

Gorgeous_George

SVR = Standard Variable Rate.

The clause may have said that the SVR is currently BofE Base Rate +2.49% - if it did, that does not infer a tracker nor that it would revert to an SVR of BofE Base Rate +2.49%.

The small print may have said that they can throw the rules out of the window in exceptional circumstances. No-one could argue that the world's financial meltdown is anything other than exceptional.

However, it is almost certainly worth complaining. You might need a lot of money to fight the case - unless someone with initials ML leads the campaign.

I still think V is for variable. Trackers begin with a T.

GG

VIGILANT22

Yes and read the enclosed documentation before signing means :
read the enclosed documentation before signing

captainhaggis

VIGILANT22 wrote: »

Yes and read the enclosed documentation before signing means :
read the enclosed documentation before signing

I agree with that, but if you get documentation from a lender saying that : "at the end of your fixed rate term you will revert to our standard variable rate which is set at X.XX% above Barclay's Base Rate for the remainder of your mortgage term", a borrower should be fully able to expect that to be the case.

Lenders should NOT be allowed to drown borrowers with contradictory terms and conditions.

VIGILANT22

captainhaggis wrote: »

I agree with that, but if you get documentation from a lender saying that : "at the end of your fixed rate term you will revert to our standard variable rate which is set at X.XX% above Barclay's Base Rate for the remainder of your mortgage term", a borrower should be fully able to expect that to be the case.

Lenders should NOT be allowed to drown borrowers with contradictory terms and conditions.

I do actually agree with you.....the T&C's are far too lengthy and complex for the average "man on the street"....as in every contract it is normally in the favour of one party..

If the truth be told, if everybody had the offer fully explained to them they would probably never buy....