What is my mortgage rate, I am really confused.

maggiecon

HI

Can someone help me understand what interest rate I am supposed to be on. I took out a RBS "Scottish two year base rat tracker 100%ERC " in 2006 for 125k.

The deal is now up but I cant remortgage cause the house is only worth the equivalent of the mortgage value.

The key facts statement with my mortgage states the following

A variable rate which is 0.05% above the base rate, until 30/04/08 currently 5.00%
The RBS plcs variable rate, currently 6.59% thereafter.
Any chane to the interest rate following a charge to the RBS rate will take effect on the 1st of the month following the date of the change.


Please can someone tell me what my interest rate is supposed to be. I think i am paying 4 or 5% at the minute

hillcats

The initial problem I can see here is that you are now at the mercy of your lender, as you state:

maggiecon wrote: »

The key facts statement with my mortgage states the following

A variable rate which is 0.05% above the base rate, until 30/04/08 currently 5.00%
The RBS plcs variable rate, currently 6.59% thereafter.
Any chane to the interest rate following a charge to the RBS rate will take effect on the 1st of the month following the date of the change.

... So it all depends on what they have set their own SVR level at, as you are unfortunately not following the BofE base rate, but their own SVR, which they have probably upped now in the current climate...

happybroker

RBS standard variable rate is currently 4%

maggiecon

Thanks guys, I'm a bit screwed then!

Just a few more questions, about additional charges because this is one way they have been trying to screw me. When i got my first mortgage statement they said I owed just over 129k! which was a higher lending charge. This was not indicated on the key facts sheet and so I got this taken off.

however on my last mortgage statment prior to switching to repayment from Interest only, they said my balance was £126,460!

The only charges mention on the key facts page was.

£199 arrangement fee

£255 valuation fee (paid in advance by cheque)

Sealing fee £255 (not to be added until remortgage or sale)

Remittance fee £30 (already paid)

Therefore should my balance not be £125,199 which is indicated on my first mortgage statement.

PS before anyone suggests it I have not missed any payments

beecher2

So did your first mortgage statement say £129k or £125,199 as you've used both figures when talking about it.

Why don't you phone up and ask where the extra £1,269 comes from.

maggiecon

Sorry

That did sound a bit confusing the £125,199 was on the summary of payments with the key facts sheet.

gonna ring them now and wiil let you know how i get on

maggiecon

Just an update, rang the RBS they say I own £123,554 on my mortgage still!!!!:mad::mad:

I have been on repayment for over a year and they are claiming i have only paid of £1500.

Plus the woman on the phone is still trying to maintain I owe them the higher lending charge!!! after they took it off several years ago.

THE RBS are a JOKE!!!

ginvzt

maggiecon wrote: »

Just an update, rang the RBS they say I own £123,554 on my mortgage still!!!!:mad::mad:

I have been on repayment for over a year and they are claiming i have only paid of £1500.

Plus the woman on the phone is still trying to maintain I owe them the higher lending charge!!! after they took it off several years ago.

THE RBS are a JOKE!!!

Do you have a letter saying that they are removing the higher lending charge from the amount owed? If so, just send them a copy of this by recorded delivery.

with regards that you have only repaied £1500. How long for did you take the mortgage for? In the first months/year, only a small part of payment is actually capital repayment. For example, £125k mortgage, 5% interest rate, 30 years term:
1st month - payment £671.03, interest part is £520.83, capital - £150.19.

maggiecon

GINVZT

Thanks for your comments my mortgage should be £125k at 4% interest over 22yrs and 3 months ( I switched from IO 2 yrs and 9mnths in)

Mortgage calculator sais I should be paying £416 in interest and £300 in capital which equates to £3600 a year and I have been on repayment over a year now!??

I have requested a mortgage statement from them

ginvzt

The SVR is variable, and I am sure it was not 4% all the time since April 2008, so you might have had different interest rates through that time.

The full statement of your payments from RBS, should show much was paid when and what interest applied (and how much of that was repayment - at least that is what our Nationwide mortgage statement used to show, if I remember correctly).

At £125k mortgage, 4%, 22y3m term, first month would be £707.73 payment, of which £291.06 is capital repayment.