BOS 100% Mortgage Trap

TinaT_2

Secondly lenders are now operating under a different set of rules, tighter underwriting criteria and affordability rules. So an individual may no longer meet the requirements.

This is exactly the point & why the information would be helpful to Tominator.

Given the low BOE base rate currently. Anybody struugling now is going to survive as when rates return to a normal level.

If I understand this thread correctly, Tominator is not on a low interest rate. Which is also the point. My thread was an attempt to inform him of the newish FCA rules which are supportive in cases such as his.

opinions4u

TinaT wrote: »

If I understand this thread correctly, Tominator is not on a low interest rate. Which is also the point. My thread was an attempt to inform him of the newish FCA rules which are supportive in cases such as his.

During the last 25 years we've had 15.4% rates from major lenders.

If somebody is struggling on a sub-5% rate God help them when rates do rise.

magpiecottage

TinaT wrote: »

If I understand this thread correctly, Tominator is not on a low interest rate. Which is also the point.

I think you understand incorrectly. The OP said

tominator wrote: »

we are with BOS and seem to be on an awful SVR compared to other lenders.

That "S" means "standard". If BOS is withdrawing from the mortgage market and therefore has no other products it cannot be treating him less favourably.

It may of course offer other products at preferential rates but they will available to borrowers who meet particular requirements. If the OP does not meet those requirements then he does not have "similar characteristics" to those who do.

If the OP does as TinaT says and complains to FOS then the complaint will almost certainly be dismissed under DISP 3.3.4(11) as an exercise of the bank's legitimate commercial judgement.

amnblog

I wonder if the OP is actually on a higher mortgage rate that was entered into originally?

I doubt it.

kingstreet

The FSA introduced the "Mortgage Prisoner" rules in October 2012 as the forerunner to the MMR introduction in April 2014.

The rules allow lenders to (eg) dispense with the affordability and interest-only requirements to offer a new mortgage of the same amount to a new borrower if it chooses to do so.

http://www.moneysavingexpert.com/news/mortgages/2012/10/hope-for-mortgage-prisoners-amid-lending-clampdown

Lenders are not compelled to offer products, nor are they compelled to offer replacement products to those on standard variable rate.

None of the TCF outcomes is/are affected by this.