Currently being shafted by mortgage company

The_unit

Hi, my fixed rate mortgage ended in April. My mortgage increased by 50%. I couldn't change provider because I am in negative equity (112k mortgage and flat is worth 105). I would love to sell but just not possible. But even to rent out I am making a loss (because of the market rate). If my mortgage provider had not shafted me I could rent it at a reasonable rate and still cover the running costs of keeping it. Which isn't ideal but at least it's workable.

I want my mortgage at a reasonable level. Ok, I know they have me over a barrel so an increase could be expected but 50%! Does anyone have a similar experience or advice how to get it reduced?

Thanks, John

Farmerbob

Hi John,

Have you spoken to your lender to see what they could do? Are you on interest only or a repayment mortgage?

somethingcorporate

How have they shafted you? they have probably applied the terms of the contract that you signed when they offered you the mortgage deal.

What precisely have they done wrong?

webmasterpolo

Hi John

I think shafted is a bit strong. I assume the lender is acting within the terms of the contract you signed up for? If they are not then complain.

If they are abiding by the terms of the contract, which sound like they gave you a good cheap deal for a set period and then you probably go onto their standard variable rate as with most fixed rate deals on the market. It's pretty common that when the good deal ends the mortgage payments rise, 50% is perhaps high, but then you accepted the terms of the mortgage.

Mortgage illustrations even show these days what would happen if the rates increased by XYZ to try and make the point that things will change in the future.

If you're in negative equity then you took the risk buying at the peak of the market / at an inflated price / borrowed over 100%, and would of course been in receipt of all the facts at the time you made a big purchase like a house.

I would check the original illustration you were provided with and the mortgage T+C and confirm if the mortgage company is shafting you, or simply following through with the agreed contract.

-Web

holly_hobby

Moving onto SVR or BMR following the end of a mge product is not being shafted, its standard practice and comes to us all !

Solution (due to your negative equity situ), is to ask your lender what products they have available to existing borrowers and which they would permit you to switch to given the current LTV issue.

I do empathise, my mge (based on the lenders current SVR) is due to at least double in August when my tracker ends, so I feel your pain and some ... !

Hope this helps

Holly

opinions4u

The_unit wrote: »

Hi, my fixed rate mortgage ended in April. My mortgage increased by 50%. I couldn't change provider because I am in negative equity (112k mortgage and flat is worth 105). I would love to sell but just not possible. But even to rent out I am making a loss (because of the market rate). If my mortgage provider had not shafted me I could rent it at a reasonable rate and still cover the running costs of keeping it. Which isn't ideal but at least it's workable.

I want my mortgage at a reasonable level. Ok, I know they have me over a barrel so an increase could be expected but 50%! Does anyone have a similar experience or advice how to get it reduced?

Thanks, John

Having paid mortgage interest at 15.4% and suffered negative equity in the past, I cannot have any sympathy with you.

You knew your fix was short term.

You knew you'd fall on to your lender's standard rate.

You've not been shafted. It's time to take a more grown up approach with this. Time to overpay.

dunstonh

If my mortgage provider had not shafted me I could rent it at a reasonable rate and still cover the running costs of keeping it.

I have just read three threads in a row where there was no wrong doing but someone was alleging rip off or being shafted. It can be really frustrating reading posts on this site sometimes.

Thrugelmir

dunstonh wrote: »

It can be really frustrating reading posts on this site sometimes.

Times are getting tougher DH. Squeeze has barely started.....

kidmugsy

Thrugelmir wrote: »

Times are getting tougher DH. Squeeze has barely started.....

But thank goodness we can be confident that the problem is never the poster's fault. No sirree!