Mortgage Broker no longer lending?So cannot change Mortgage interest rates.

foxylady1958

I've a Mortgage through a Broker.Which has a high interest rate of 9.44%I've had financial problems over the last 18months.They have never offered an alternative Mortgage or other payment alternatives only in the last 5 weeks have offered the interest only at the same rate.The only thing they pushed me to was the GMRS which failed and it wasn't their Mortgage Dept but their Secured Loan Dept.I've received a copy of a letter send to someone I've contacted regarding this and they state 'name of company is no longer lending and therefore we are not able to amend the interest rate on the account.'The Mortgage Broker has never informed me of this.Can they do this?I'm now thinking that they stopped selling mortgages when their Loan Dept put forward to the GMRS.I now feel that they have been negligent on their part to offer me a solution.i.e to move the mortgage to another provider and to be transparent in their Business Practice.I've a court order for Possession next month and I do have a Solicitor who has requested in writing that they have followed Protocol.I have the property up for sale but economic times is making it hard to sell.They have never once put anything in writing to me only the mortgage statement and late payment letters.They've accepted a certain amount for the last 18months but they won't put it in writing.Now having seen this letter I can see that all I've got now is a loan and not a mortgage as they don't do them anymore.

silvercar

A mortgage is just a loan that is secured on the property.

Your mortgage broker would have helped you in obtaining the mortgage. At that rate I suspect you already had credit problems at the start. Once the broker had arranged the mortgage for you, essentially his job is done.

You've now asked him to help you get a better rate. Your current lender is no longer offering new deals, so has no product to offer you. Nothing illegal about that, no obligation on the lender to take on new business. Your existing mortgage continues on its current terms.

As you have a court order for possession, I strongly suspect you have some recent arrears. This will be the reason that your broker cannot find another lender prepared to take you on. That is not your broker's fault. From the broker's point of view, a new deal for you is more commission for him, so if he could help he would.

They have never once put anything in writing to me only the mortgage statement and late payment letters.They've accepted a certain amount for the last 18months but they won't put it in writing.

The amounts they have accepted will show on your mortgage statement.

They have never offered an alternative Mortgage or other payment alternatives only in the last 5 weeks have offered the interest only at the same rate.

If they aren't offering new products, this is the best you are likely to get. Some people are even refused to be moved to interest only.

Now having seen this letter I can see that all I've got now is a loan and not a mortgage as they don't do them anymore.

A mortgage is a loan secured on the property. No difference.

I've a court order for Possession next month and I do have a Solicitor who has requested in writing that they have followed Protocol.

What does your solicitor say?

If you can agree a repayment plan with the lender to pay the interest part of the mortgage plus something towards arrears, then you can hope for a suspended possession order. This means you keep your home unless you don't keep to the agreement, so only agree what you can afford.

I have the property up for sale but economic times is making it hard to sell.

The sure way to sell is to reduce the price, compare your property with the actual sold prices of similar properties.

Meeper

When you took a mortgage in the first place, you were signing up to the terms and conditions of it for the long-term. For example, if the terms of the mortgage were 10% fixed for the first two years then LIBOR + 25% thereafter, that's the deal. You signed up to it and you are expected to honour it. The lender is under no obligation to offer you any other options or to make it easy for you to switch to another company. You are in the deal, you agreed to the terms, so there is no basis for claiming any negligence on the part of the lender who has not only honoured their original deal but appear to have been patient with you thus far.

foxylady1958

Thanks for the replies.I Took out the Mortgage when I could afford it and I didn't have credit problems infact my credit file was perfect.I worked in an Industry crippled by the Financial Crisis.My Solicitor is requesting full details of whether they followed Protocol and a full list has been sent to them.Also they are looking into the Letter which I received a copy of.I've reduced the Property twice and properties on the road I live which are up for sale £25,000-£35,000 more so it is the cheapest by far.