Intelligent Finance - SVR rate increase possible?

JamieStapleton

So I have been paying added attention to the recent SVR increases being forced on many mortgage borrowers.

My mortgage with Intelligent Finance currently is sitting pretty on their SVR which is below 3%. However the recent forced SVR increases by other lenders has got my attention.

I can't seem to find any information to determine whether Intelligent Finance can potentially increase their SVR. I know some lenders cannot do this based on their terms and conditions.

An article in today's Times on the SVR rise claim that Lloyds Banking Group are one of those lenders who legally are unable to forcibly raise the SVR. Intelligent Finance are part of the Lloyds Banking Group but I can't seem to determine whether this legal restriction that applies to Lloyds applies also to Intelligent Finance?

Any guidance here would be much appreciated.

opinions4u

They certainly did their utmost to stop IF customers keeping a 2.50% rate if they moved house a couple of years ago and then, presumably as a result of regulatory intervention, backtracked and allowed portability.

This suggests that they are tied to the 2% above base rate link as I think they would have backed out of it by now if they weren't.

So I think you'll be fine. But keep an eye on things!

(Lloyds Banking Group inlcudes many brands. While Lloyds TSB and C&G may have hamstrung themselves, it's clear that Halifax, BoS, TMB and BM brands haven't).

deedee71

I'm also on the "no more than 2% above base" with IF.

Hopefully IF won't be able to wriggle out of it, but who knows what will happen when/if the Co-op takes it over (Nov 2013 I've heard).

JamieStapleton

deedee71 wrote: »

I'm also on the "no more than 2% above base" with IF.

Hopefully IF won't be able to wriggle out of it, but who knows what will happen when/if the Co-op takes it over (Nov 2013 I've heard).

But I cannot see how they could change the terms and conditions you signed up to when the mortgage was granted

deedee71

I agree they shouldn't be able to but if the can they will!

Have a look at the thread re Virgin One Account. Those who held mortgages since prior to 2002 are facing this situation.

BrokerM

I'm a mortgage broker myself and also on the 2.5% rate with IF personally.

I don't believe it is linked to base rate at 2% above, but fear it is a more traditional SVR that can be amended by the bank itself, rather than economic forces that drive the base rate.

I need to check mind you...

BrokerM

Checked with a lending manager at Lloyds regarding the IF 'SVR'.

Although its called and known as an SVR, it definatley is 2% above the BOE Base Rate, so a bit more stability there...

Thrugelmir

JamieStapleton wrote: »

But I cannot see how they could change the terms and conditions you signed up to when the mortgage was granted

People rarely read what they sign. There's at least one clause that will provide IF with a get out.

bubieyehyeh

I seem to remember that the Mortgage expert on the BBC's moneybox program stated about a year or so ago that IF was one of the companies that could not increase their SVR without the agreement of both parties.