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Mortgage Rate Increase??

molo46
molo46 Posts: 1 Newbie
in Mortgages & endowments
My bank has just written to me so say they are increasing my mortgage rate due to the the increased cost of funding and operating mortgages in today's economic climate. Can they do this?

Comments

  • InsertWittyName
    InsertWittyName Posts: 1,073 Forumite
    Debt-free and Proud!
    Yes they can.
    I was a DFW, now I'm a MFW :T
  • Yorkie1
    Yorkie1 Posts: 12,175 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Are you in a fixed rate term or on a tracker / variable rate?
  • originalmiscellany
    originalmiscellany Posts: 1,655 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker Mortgage-free Glee!
    Who are you with? THe sad reality is that if you have a good LTV you will probably be okay and able to get a mortgage elsewhere, but if you have a bad (high) LTV you have to suck it up :(
    Feb 2012 - onwards MF achieved
    September 2016 - Back into clearing a mortgage - Was due to be paid off in 32 years in March 2047 -
    April 2018 down to 28.00 months vs 30.04 months at normal payment.
    Predicted mortgage clearing 03/2047 - now looking at 02/2045
    Aims: 1) To pay off mortgage within 20 years - 2037
  • kingstreet
    kingstreet Posts: 39,315 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Bank of Scotland/TMB?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • opinions4u
    opinions4u Posts: 19,411 Forumite
    The cost of funding has risen for many mortgage lenders.

    This means that some will pass it on to their customers.

    If you have a variable rate mortgage they can vary it.

    If you have a fixed rate mortgage, or a tracker mortgage (tracking BofE base rate), then they can't vary the rate.
  • _Andy_
    _Andy_ Posts: 11,150 Forumite
    molo46 wrote: »
    My bank has just written to me so say they are increasing my mortgage rate due to the the increased cost of funding and operating mortgages in today's economic climate. Can they do this?

    I hate manure!
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    molo46 wrote: »
    they are increasing my mortgage rate due to the the increased cost of funding

    Do you expect your lender to make a loss lending you the money?
This discussion has been closed.
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