default help please!

9_monkeys_dancing

I'm currently with Santander and going to have a product switch shortly, last year my wife defaulted on her credit card which she is currently paying back, somehow ( even though they don't do credit checks), the bank saw there was a default and wacked up the interest by a stonking 2.7% which has basically doubled my mortgage. This has now pitched us in as mortgage prisoners as no other bank will lend to us due to the default.


Can anyone offer any advice at all???

debtisnotme

Well I can tell you that the reason your mortgage rate has risen is not because your wife has a default given that you've not as yet changed your mortgage. Could it be that your fixed rate has ended and you have moved to their standard variable rate which happens to be 2.7% over your fix?

debtisnotme

Looks like their SVR is currently 4.49% does that add up?

debtisnotme

Seems like you asked this question a couple of months ago

https://forums.moneysavingexpert.com/discussion/comment/72561052#Comment_72561052

9_monkeys_dancing

Its gone to 4.29%, which is below the SVR. ( from 1.59%).

9_monkeys_dancing

I did, but as you can see no-one replied, so I thought I'd ask it again.

[Deleted User]

It looks like you've completely misunderstood the situation.

9_monkeys_dancing

Well I gave Santander a call, and they saw the default and said that's why we haven't given you a better rate.

EssexHebridean

Do they by any chance offer a similar "loyalty discount" off the SVR to that which other lenders do? If so that might explain the slight difference.

Something to bear in mind: the rate you are on currently is now a rather more realistic rate than the one you were on before your fix ran out. The rates that are about at the moment are going to catch one HECK of a lot of folk out when they start to increase - my advice to anyone getting a mortgage currently is to ensure that they overpay - or at least set aside money up to the level of where the payments would be on the SVR - as these current low rates will not be about forever.

There is some confusion here though I think: If I'm reading this right:
You were on a fixed rate which ended this month.
Have you changed product? Or are you now just paying the SVR on your old mortgage product?
Have you talked to Santander about moving onto a new Fixed rate product? If so what have they said? I take it you do realise that you do have to apply to be put onto a new fix?

9_monkeys_dancing

Hi,


It ends in September, I have checked my current options for change of product on line, they are offering 3.99% for 2 years and 4.29% for 3/5 years ( all fixed).


I'm currently on a 2yr fixed at 1.59%. my LTV is 43% we put down a deposit which was about a 1/3 of the initial value of the property. The property is now valued at £1 million. They said due to the default on the credit file this is the best they can offer, ( even though they apparently do no credit checks).


Essentially the mortgage will now double.

sourcrates

9_monkeys_dancing wrote: »

It ends in September, The property is now valued at £1 million.

£1 Million ?

Sell it, move to Yorkshire, live like a king !!!!