Retrospective interest rate hike

beecher2

Elinor_197 wrote: »

In desperation, I cancelled the direct debit to derbyshire home loans and set up a standing order for the original amount as I didn't have the extra £300+ ; Letter demanding reinstatment of direct debit arrived today so I rang to tell them I am getting advice and pointed out I had paid the original amount I had budgeted for. The girl I spoke to said the date of 29th May "must have been a typing mistake" because the letter was not sent until mid June - confirming my belief that the colossal increase in my mortgage rate WAS retrospective, I said I hoped the call was being recorded and she reaffirmed (twice again) that the letter was not sent in May as dated.
For the record, I'm not just coming off a fixed rate, it's just a massive increase out of the blue

I think it is really unwise to run up mortgage arrears like this, particularly as it is without the lenders' permission

If you're on a variable rate, you can't just say you'll pay what you budgeting for. You need to keep in touch with the lender, and not just by saying 'I'm not paying this, I'm getting advice'.

Elinor_197

I'm not trying run up arrears for fun, what they did was hit me with a backdated rise in my bill, If I hadn't cancelled the DD it would not have been paid AND I would have incurred bank charges, I paid the original amount by standing order, otherwise I could be accused of defaulting when I complain,

beecher2

Elinor_197 wrote: »

I'm not trying run up arrears for fun, what they did was hit me with a backdated rise in my bill, If I hadn't cancelled the DD it would not have been paid AND I would have incurred bank charges, I paid the original amount by standing order, otherwise I could be accused of defaulting when I complain,

So from July onwards are you going to pay the amended amount? It is no longer backdated since you now know about it.

How are you going to cope with future interest rate rises?