MSE Leaders' Debate: Existing Mortgage Holders

Former_MSE_Wendy

This thread is specifically to discuss the Existing Mortgage Holders question in the guide:

Existing Mortgage Holders: MSE Leaders' Debate

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sandwichman888

Are you a Borrower who considers you are currently paying unfair SVR interest rates when you came to the end of your interest rate “fix” in the past 15 months? Not what you expected when you signed up? You're not alone. There are 10's of 1000's of us in the same boat. You have probably been fobbed off with the words “The Society's SVR is not a base rate tracker but a MANAGED rate which the Society may alter in line with their Commercial judgment” I bet none of you had that written into your KFI or Contracts! So, all is not necessarily lost. Check the wording of your KFI and Mortgage Conditions to see if your Lender clearly defined the expression “Lenders SVR” or similar. If you've mislaid your KFI,write and ask the provider of the KFI for a copy. They are statutorily bound to hold copies for 7 years. If the definition of the Lenders SVR does not fully detail all possible outcome's of their application of that standard Lenders term, including an implied interest rate “Collar,” then your Lender may well be in breach of UTCCR 1999 and breaching FSA Rules of Disclosure.
Here is an extract from ‘The Times’ newspaper dated 3rd December 2008: Mr Pain told the Council of Mortgage Lenders (CML), the industry body representing the banks and building societies that make home loans: “If it is not [included] you run the real risk of both breaching our disclosure requirements and having an unfair contract term you cannot enforce.”

A spokesman from the FSA defended the request to simplify the documentation, adding: “It cannot be right that to shorten your KFI you take out something which is required under FSA rules. It is a rule that a collar should be included in a lender's KFI.”
Under UTCCR there are other requirements that your Lenders may have breached. Here are 2 of them, although I strongly recommend you visit the Gov Uk Site for the full text.
Unfair terms in contracts - what is an unfair term?

An unfair term in a contract covered by the Unfair Terms in Consumer Contract Regulations (UTCCRs) is not binding on you.
Test of fairness
A term is unfair if...
Contrary to the requirement of good faith it causes a significant imbalance in the parties' rights and obligations under the contract, to the detriment of consumers.
'Good faith'means that traders must deal fairly and openly with you.
Although standard terms may be drafted to protect commercial needs, they must also take account of your interests and rights by going no further than is necessary to protect those legitimate commercial interests.
The plain language requirement
According to the UTCCRs, a standard term must be expressed in plain and intelligible language. A term is open to challenge if it could put you at a disadvantage because you are not clear about its meaning - even if its meaning could be worked out by a lawyer. If there is doubt as to what a term means, the meaning most favourable to the consumer will apply.

So there you have it. Write to your Lenders and complain today. Demand a refund of overpaid interest charges (it puts it on Record).Inform your Lender that you consider they are levying unfair charges because they are acting in breach of FSA rules of Disclosure and UTCCR 1999.They will probably “stonewall” you by saying that is their final offer and you should take the matter to the FOS.
Jump through the FOS hoops but don't hold your breath for an FOS decision in your favour. But don't worry you still have the FSA and if a few thousand Borrowers all complain about the same or similar thing, maybe the Lenders will change their policy.
Finally. I say MAYBE because the Lenders have £billions to pay out if they do decide to treat us all fairly so they will resist, but in that case the matter must be tested in the Courts. I believe that so many of us are paying these Standard Variable Rip-Offs that if we all chipped in just £10 into a fund to hire Top Lawyers to fight our corner, we will win in the end.
Be aware that the current “SVRs” these rogue Lenders are getting away are their BASE rates for any future rate rises!
What do you think?