Mortgage rate change help !

Tebheag

Hi
Thought i would try on here as up are prob the best people for advice.
I have just phoned up the bank to reduce our mortgage payments as I have just lost my job, to be told that our fixed rate is ending on 31/10/2011. and going onto the variable std rate.

Problem is we where meant to be on a stepped fixed rate for 3 yrs
first year 4.29 done
2nd year 5.39 just about to finish
3rd year 5.99 which we are meant to be starting on 01/11/11

If this was correct I would not have to worry about my job as after childcare travel etc I only brought home an extra £250 which would be covered by now by the drop in mortgage payments

Any advice would be great the girl checked two departmants got a letter stating fixed term ends on 31/10/11 and account will revert to variable rate !!!

dimbo61

So you are going onto the SVR (what rate? ) or 5.99% fixed for another year or am I reading your post wrong !
Dont have PPI or mortgage payment protection do you ?
Can you manage for another 12 months until the mortgage drops onto the SVR ?

scheming_gypsy

As the BOE base rate is still 0.5% then the SVR will probably be lower than your fixed rate mortgage, which would result in lower payments. So you'll need to give people lots more to work on, such as what SVR did they say you'd be going on to etc

Tebheag

dimbo61 wrote: »

So you are going onto the SVR (what rate? ) or 5.99% fixed for another year or am I reading your post wrong ! Thats where I am stuck bank say SVR (3% above BOE)as of 01/11/2011 but I had signed up for fixed rate for 3 years to end 31/10/2012 !
Dont have PPI or mortgage payment protection do you ? Nope
Can you manage for another 12 months until the mortgage drops onto the SVR ?

Maybe able to survive but would mean using CC for food or maxing both bank overdrafts !

Tebheag

scheming_gypsy wrote: »

As the BOE base rate is still 0.5% then the SVR will probably be lower than your fixed rate mortgage, which would result in lower payments. So you'll need to give people lots more to work on, such as what SVR did they say you'd be going on to etc

My question was more to do with has anyone ever had the bank make an error saying fixed rate ended sooner than was meant to !!!! Which they are saying my case !

spuunge

So you're going to be on a rate of 3.5% instead of 5.99%? That sounds like a good deal to me

Tebheag

spuunge wrote: »

So you're going to be on a rate of 3.5% instead of 5.99%? That sounds like a good deal to me

Would be great if it happens but as they say if something is to good to be true it normally is!

scheming_gypsy

That was the point i was making, all SVR's seem to be lower than your fixed rate so your payments will go down. Plus if your fixed term has come to an end you might be able to get new fixed term on lower rates.

Tebheag

My problem is my fixed rate contract is not at an end, meant to have another 1 yr to go ays on the contract as found it! however bank are saying it is ending got a letter to say so will just have to wait and she what happens !
Take it no one else has been in this situation then

dimbo61

If it goes onto the SVR that great but please save the difference between the SVR of 3.5% and the fix you should be on of 5.99%
Now you may say that You would be on beans& toast for next 12 months but if it does goto 5.99% you will have to pay it !! Wont you

Tebheag

Yippe bank just called they are going to honour the SVR !
Had chats with them over the last couple of days local branch agreed with me we should have been on fixed rate till Nov 2012 and i asked for complaints number as been messed around so much all I wanted to know was what the new rate was going to be.
So shocked about it as had been hoping for maybe £100 as goodwill gesture have spent several hours on phone about it all.

Thanks Dimbo61 hopefully by the time it goes up I will have a job to bring in more money as for beans on toast even that would have had to go on the CC was £300 short from loosing my job. with 2 wee ones we had already tightened everthing.