Unable to renew mortgage help?

apmolloy

Hi All,
I bought a property with my ex partner. After we split I continued to pay the mortgage for the past 8 years. I have not missed a payment. my interest rate is now 4.8% and due to go up again. I have tried to change to a fixed 5 year at 3% but my lender says I do not earn enough to do this on my own. I cannot have my ex taken off the mortgage due to the same reasons. What are my options if any to reduce my interest rate I am paying as I will soon struggle to meet the repayments if the interest rates continue to rise.
Thanks

Mortgage_Adviser

Who is your lender?
If you were able to get a betetyr deal from your current lender would your ex be happy to sign the new mortgage offer?

AnotherJoe

I wonder if a complaint is in order, i know there was some publicity recently about people trapped in high rate mortgages because in theory they didn't qualify for lower rates even though that put them in the kafa-esque position of being told they cant afford £X a month and being charged £X+ by the exact same organization that says they can't afford £X!

I would write a letter of complaint asking for a review, on the grounds that this is against the governments code of conduct, that you have an 8 year record of paying the mortgage, and that they are asking you to pay more than a mortgage that they say you cannot afford !

I would copy that complaint to the FCA

https://www.moneysavingexpert.com/news/mortgages/2016/05/regulator-acknowledges-mortgage-prisoner-problem-as-martin-meets-george-osborne-

http://www.telegraph.co.uk/personal-banking/mortgages/mortgage-prisoners-new-hope-compensation-payments-overpriced/

There might be more recent updates on this issue you'll have to search

spriggsy

I was in the same situation and I was fortunate to be able to borrow some money off a family member to reduce the LTV and then pay them back month on month. If that's a possibility then try that.

Thrugelmir

apmolloy wrote: »

What are my options if any to reduce my interest rate I am paying as I will soon struggle to meet the repayments if the interest rates continue to rise.

For the past 8 years you've been saved from addressing this problem by the ultra low interest enviroment. If the mortgage is unaffordable. Then you face no other option than to sell the current property. Or find someone else to replace your ex on the mortgage.

Did you come to an arrangement regarding the property with your ex when you parted?

AnotherJoe

Thrugelmir wrote: »

For the past 8 years you've been saved from addressing this problem by the ultra low interest enviroment. If the mortgage is unaffordable. Then you face no other option than to sell the current property. Or find someone else to replace your ex on the mortgage.

Did you come to an arrangement regarding the property with your ex when you parted?

The OP hasnt got an "ultra low interest rate" and for any conceivable rate rises over say the next five years, if they were paying "normal" interest rates would still be paying less than have been over the recent past !

On what planet is it reasonable to say "we can't move you onto 3% because our calculations say you can't afford that, so therefore you'll have to pay 5% ?

antrobus

AnotherJoe wrote: »

The OP hasnt got an "ultra low interest rate" ...

That's not what Thrugelmir said. Their post, which you quoted, referred to an "ultra low interest enviroment". And we have been, and still are, in an ultra low interest enviroment; base rate is still only 0.5%.

What would be a 'reasonable rate' for the OP to pay, I have no idea. It would depend on how risky a proposition you thought they were. I don't have the information to make that judgement, and have no interest in doing so, since I'm not a bank.:)

P.S. The FCA doesn't do complaints. The FOS would be a better bet.

AnotherJoe

antrobus wrote: »

That's not what Thrugelmir said. Their post, which you quoted, referred to an "ultra low interest enviroment". And we have been, and still are, in an ultra low interest enviroment; base rate is still only 0.5%.

What would be a 'reasonable rate' for the OP to pay, I have no idea. It would depend on how risky a proposition you thought they were. I don't have the information to make that judgement, and have no interest in doing so, since I'm not a bank.:)

P.S. The FCA doesn't do complaints. The FOS would be a better bet.

The OP hasn't benefited from an "ultra low interest environment " if they are on 4.8%.

Thrugelmir

AnotherJoe wrote: »

The OP hasn't benefited from an "ultra low interest environment " if they are on 4.8%.

Being pedantic. What would their interest rate be without an ultra low interest environment?

(If interest rates hadn't fallen from August 2007 when base rate was 5.75%).

dunstonh

apmolloy wrote: »

Hi All,
I bought a property with my ex partner. After we split I continued to pay the mortgage for the past 8 years. I have not missed a payment. my interest rate is now 4.8% and due to go up again. I have tried to change to a fixed 5 year at 3% but my lender says I do not earn enough to do this on my own. I cannot have my ex taken off the mortgage due to the same reasons. What are my options if any to reduce my interest rate I am paying as I will soon struggle to meet the repayments if the interest rates continue to rise.
Thanks

Firstly, your mortgage is not renewing. Mortgages do not renew. You may be getting to the end of the deal period but that is all.

I do wonder if the lender are taking this position because of your split. This is a problem that you are putting off but sooner or later it will be an issue that needs resolving.

Are you on interest only or capital & Repayment basis?