Unfair mortgage conditions

coffee18

My daughter has a tracker mortgage which was taken out with the Scarborough B.Soc in July 2007, the society has since merged with the Skipton B.Soc.
The terms of the mortgage are 0.69% over base, interest only, over 25 years on borrowings of £121,000.
My question is this: On the offer of advance it states that the lender has a floor on the interest rate of 3%, however, there is no ceiling. This seems very one sided as the lender is protected from low rates while no such protection is given to the borrower from high rates, surely this is very one sided, is it worth challenging?

silvercar

You had the choice whether to take it under those terms or go elsewhere.

dunstonh

My question is this: On the offer of advance it states that the lender has a floor on the interest rate of 3%, however, there is no ceiling. This seems very one sided as the lender is protected from low rates while no such protection is given to the borrower from high rates, surely this is very one sided, is it worth challenging?

If you dont choose to buy a cap and collar mortgage then you should not expect cap and collar terms.

amnblog

Many small building societies use collars.


Scarborough have been smart enough here to protect themselves against 5 years of a 0.5% base rate.


If it is on the paperwork the borrower was made aware of it.

stator

You'd have to take it to court and probably lose.

somethingcorporate

Sounds reasonable to me.

ACG

Your daughter can move lenders if shes not happy.

Thrugelmir

coffee18 wrote: »

This seems very one sided as the lender is protected from low rates

In what way do you feel that the lender is protected?