Mortgage lender's obligations to me

FJD

Hi, I currently have an interest only mortgage which is on the SVR. I am struggling to make the repayments & keep ringing my lender to ask to be put on a fixed rate to reduce my monthly payments. I keep getting a flat "No" & when I ask why they don't give me a clear answer! I've been with the same lender a number of years & my mortgage is not in arrears.They mention LTV, credit rating, relationship with them etc but won't give me a definitive answer. They told me today my LTV is in the bracket of 75-85%, which seems reasonable. I've told them I'm struggling but all they've offered me is reduced payments, which would put me in arrears. I'm not ignoring the issue & I'm trying to get some help but they're not offering me what I consider a fair solution - all I'm asking for is to be put on a fixed rate product with a slightly lower interest rate to lower my payments.
Are they under any obligation to help me to avoid going into arrears??? Surely it would be better to change my product than let me go into arrears?
Many thanks in anticipation.

opinions4u

Your lender is under no obligation to offer you an alternative product.

Who are the lender?

What rate / product are you on? What ERCs does it have?

FJD

I am on 4.99% - Alliance & Leicester's SVR, recently taken over by Santander. The frustrating thing is that Santander's SVR is only 4.24%!

kingstreet

Do they actually have a customer retention product less than 4.99%? They may not have anything which would reduce your payments.

What about moving to another lender? o4u's questions are relevant to that discussion.

FJD

They have various fixed rate products starting below 4%. Even if Alliance&Leicester adopted Santander's SVR it would make a huge difference to my situation.

opinions4u

They certainly won't change the SVR just for you.

I'd suggest you're barking up the wrong tree. If they don't have an alternative product for you and you aren't able to remortgage elsewhere do the following:

1) Go to www.makesenseofcards.co.uk and complete a Statement of Affairs (SOA)

2) Post it on the Debt-free Wannabe board and ask for help there

kingstreet

They have new borrower products at those rates, or they have customer retention products? The latter are products available to existing borrowers not moving home who are looking for a new rate, just as you are.

There's no point looking at products for new borrowers, remortgagers or first time buyers as these products aren't available in your circumstances.

TBH I couldn't find any products for you. Just this;-

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237875649724&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateW2

and I guess you've already tried this line.

Thrugelmir

FJD wrote: »

They have various fixed rate products starting below 4%. Even if Alliance&Leicester adopted Santander's SVR it would make a huge difference to my situation.

Although part of the same group they are different legal entities.

Santander are under no obligation to offer you a new mortgage product. In fact they are running down the old A&L mortgage book.

Suggest you contact a local mortgage broker and see what options for remortgaging are on offer.