Low Start Mortgage

lesh7751

Has anyone had a similar experience, or know of a specialist who can advise:

I took out a low start interest-only mortgage, in 1989, which provided low interest costs for a 3 years at the start of the mortgage and after, a high rate for a few years until the rate lowered to the normal base rate.

Unfortunately, during the high rate period, I was made redundant and incurred high arears. The rate applied to the arrears was also at the higher rate, compounding further the amount owed.

Should the arrears have also been charged at this higher rate, or should they have been charged at the normal base rate.

LisaT186

Sorry to hear about your difficulties, unfortunately any arrears are normally charged at the rate of your mortgage, so in this case the higher rate. They are simply added to the loan outstanding.