Issues with Standard Life Mortgage

AlisonTanner

I'm a newbie here so apologies if I've missed a thread about this subject.

My husband and I have a mortgage with Standard Life (SL) whose mortgage book is owned by Barclays (as from Jan 10). We came to the end of a 2 yr fixed rate in October 09 just when Barclays announced they were taking SL over. At that point we reverted to SL's variable rate which is 5.2% and we are paying just over £900 per month. Obviously this isn't remotely a good deal so we have been trying for months to change our product. The big problem is that SL no longer have any other products but also Barclays are not offering SL customers their products yet. So we have tried to move lender altogether but because of the complications with my husband being self employed we have come up against a brick wall with that option.

Has anyone else had this experience and if so have you been able to get round it? I find it hard to believe that the banks can be allowed to, for all intents and purposes, trap you into an optionless scenario. Obviously the current lending climate doesn't help and although we have never missed a mortgage payment, don't have any loans and minimal credit card debt we find ourselves totally penalised and without a hope of reducing our monthly payments. :mad:

I would be really interested to hear from anyone else in such a situation.

Thanks in advance Alison

_Andy_

They haven't 'trapped' you - the SVR is what you agreed to when you took the mortgage out. It's not the bank's fault your circumstances have changed, nor are/were they obliged to offer new deals once the two years expireed.

VIGILANT22

Please don't think they have trapped you intentionally, SL would be more than happy for you to leave to reduce the mortgage book....However reading your post, I understand it is indeed your own circumstances that is stopping you from moving and achieving a more competitive rate......

AlisonTanner

"They haven't 'trapped' you - the SVR is what you agreed to when you took the mortgage out. It's not the bank's fault your circumstances have changed, nor are/were they obliged to offer new deals once the two years expireed."

You are absolutely right that we chose the SVR when we took the mortgage out. However who could have imagined that after selling their book to another lender SL doesn't have any other products and the new owner isn't offering new ones either. How would you feel if you had done the necessary ground work when choosing SL and then 2 years down the line you had nowhere else to go with that company nor with the new owners? No-one is crying over spilt milk here it is purely the fact that if we were in exactly the same personal circumstances but had a mortgage with say Natwest we would be able to move to another of their products thereby reducing our monthly payments.

TighterThanTwoCoatsOfPain

AlisonTanner wrote: »

........... At that point we reverted to SL's variable rate which is 5.2% and we are paying just over £900 per month. Obviously this isn't remotely a good deal .....

What was the fixed rate you come off and what was the SVR at the point you took the deal? I'd wager the SVR is lower today than you expected it to be when you took the mortgage?

I'd argue the majority of those with mortgages would think 5.2% is a reasonable deal.... people have been spoilt with the headline numbers of the last year or so..

Thrugelmir

Why are you trapped? There is nothing to stop you approaching Barclays to remortgage.

Barclays may have bought SL but they are 2 seperate legal entities. Barclays will only want to take onto its own books borrowers that meet its own lending criteria. Overtime the SL mortgage book will be run down and quite possibly sold on again in the future.

Kavanne

I have always had a great experience with Standard Life. They lent to us when no one else would. We've kept up repayments and proved them right! They pick up the phone quickly and are always polite and knowledgeable. Thanks Standard Life!