Kensington

Frankandann

I have recieved a letter from Kensington today increasing my mortgage rate to 9.7%. I am not aware of ny recent hikes in the bank rate or have I missed something. I would love to get out of this mortgage altogether but having been made redundant last year and still on JSA my chances of getting back to a High Street lender are slimmer than slim. I am beginning to get the impression that they just make rates up as they go along and are bleeding dry vulnerable people.

homer_j_3

Kensigton do not follow the Bank Of England Base Rate (BOEBR), they follow the London Inter Bank Offer Rate (LIBOR)and they effectively review their rates every 3 months.

A lot of non-conforming lenders like Future follow the LIBOR rate due to where they borrow the money from. I try and avoind Kensington like the plague and if they are the lender that looks best, I try and get my clients to not get a mortgage (and that is no Joke!)

Hope that gives you an insight - not sure whether that was the question or not lol

MortgageMamma

Agreed homer, I try to avoid LIBOR linked products too

JoeK_3

Frankandann wrote: »

I have recieved a letter from Kensington today increasing my mortgage rate to 9.7%. I am not aware of ny recent hikes in the bank rate or have I missed something. I would love to get out of this mortgage altogether but having been made redundant last year and still on JSA my chances of getting back to a High Street lender are slimmer than slim. I am beginning to get the impression that they just make rates up as they go along and are bleeding dry vulnerable people.

Sorry to hear of your interest rate hike but it will have been in the mortgage offer and the mortgage deed when interest rates are due to change.

It looks like your initial deal with Kensington has finished and rates have moved to Libor + a percentage. Check the offer and see if there are any penalties to move the mortgage.

JoeK