My mortage interest rate - 14.05%!!

Puddle_duck_4

Hi guys,

I've just called my mortgage company, after having paid off some arrears - to check the details and am astonished to find that my interest rate is 14.05%!!! :mad:

I'm tied in til Jan next year, so can't afford to change mortgages.

Surely this much increase over the bank of england base rate is just taking the pi$$?

Is there anything I can do about it?

btw - Its a variable interest and I think it was a buy to let mortgage

dmg24

Do you have the key facts illustration from when you took out the mortgage?

If not, do you know exactly which product it is that you have?

MortgageMamma

have they increased the interest rate due to the arrears, some lenders will forfeit your right to a fixed rate of interest if you go into arrears, which is totally wrong but still it happens. Sometimes it can be a good idea to work out what the early repayment charges are and get a broker to assess if a product change is viable

the trouble you will have is that a lot of lenders are tightening their sub prime criteria and a lot of the unlimited arrears or heavy arrears products are either having affordability and loan to value restricted on them, or are disappearing from the market altogether. I must warn you now that there is a distinct possibility you may find it very difficult to remortgage next year. You can thank the stupid Americans for this.

The main culprits seem to be Rooftop, SPML, First National

owner

You think it was a buy to let mortgage ! How can you not know ???

Puddle_duck_4

dmg24 wrote: »

Do you have the key facts illustration from when you took out the mortgage?

If not, do you know exactly which product it is that you have?

No I don't, I just have the paperwork of the mortgage offer, and its says 'we are pleased to offer you a mortgage on the terms set out in our general mortgage conditions booklet ...'

Puddle_duck_4

Oh sorry have just read this, Kensington's standard variable rate - which was discounted until feb 2006, which will then be followed by kensingtons standard variable rate

Puddle_duck_4

owner wrote: »

You think it was a buy to let mortgage ! How can you not know ???

Because it was a while ago and I can't remember things like that.

Soprano

Puddle_duck wrote: »

Because it was a while ago and I can't remember things like that.

:rotfl: Are you being serious??

Puddle_duck_4

Soprano wrote: »

:rotfl: Are you being serious??

Errr yeah - I'm not one of those people that remember things like this - otherwise I wouldn't be asking on a forum for advice!

3 years is a long time to remember something thats not particularly interesting to me!

Hoario54

Puddle_duck wrote: »

Because it was a while ago and I can't remember things like that.

The mind boggles...

Anyway, Kensington's current SVR is 7.8% and the highest reversion rate on it's most expensive product (High Adverse) is 10.85% so you must have really upset them.

Talk to Kensington or preferably the company that advised you at the time you took out the mortgage to find out why exactly you are paying such a high rate.

tr3mor

Puddle_duck wrote: »

3 years is a long time to remember something thats not particularly interesting to me!

With that kind of attitude, it's no wonder the bank has you over their knee!