Can you help I think this wrong

samcleo

Hi all

I have 2 buy to let mortgages with the same lender, so 2 different properties, different borrowed amount etc, my mortgages rates are changing but I am unable to change them. One of my mortgage is up to date the other one is 1 month in arrears I understand I can't change the rate on the mortgage which is arrears but surely if the other is up to date I do see the reason why. I have always pay on time only this incident due to bank account change. Can you please advice as I think this is wrong
Many thanks

ACG

From the lenders perspective you are probably in financial difficulties. So to tie you in to a new deal (and early repayment charges) could be deemed as irresponsible.

Looking at it from a business perspective, you are in arrears. They are probably happy enough to let you go to a new lender.

samcleo

Thank you for your reply, the mortgages are paid by the rent received and I have always paid on time I am only 1 month behind on 1 mortgage ((£209), however the rate mortgage that is up to date is doubling which I think is irresponsible from the lender as I was in financial difficulties doubling my mortgage then will not helping

ACG

So what would happen if the property was empty? If you are struggling to pay it with a tenant at a low rate, how is tying you in to a new deal responsible? Playing devils advocate here - I can see both sides to the argument.

samcleo

Yes i get your point in that case I should not the mortgage in the first place, I am not struggling to pay I missed a payment because a change of bank account however doubling the rate will hot as I said it is doubling then again the mortgage rate I am trying to change because I had that rate for 2 years is not in arrears

ACG

But that does not make much sense, it would if you were a couple of days late and then made a manual payment to catch up. But if you are still in arrears after a week and have not made a conscious effort to catch up on the late payment then why should they offer you a new deal?

Your not exactly showing them you are a good customer?

I could probably debate this with you most of the day but I can see their side. Ultimately as it is a BTL, it is a form of commercial finance and you do not get wrapped in cotton wool the same way you would if it were a residential mortgage.

But im off to the pub to watch the football.

middleclassbutpoor

A responsible borrower would have ensured that the payments were made on time regardless.

You can't miss a payment with a change in banks but you could have been late by a few days with a change in bank perhaps if a DD didn't collect due to the changeover and you made a manual payment as soon as you realised.

If you are recorded as having missed a full month then that would suggest that you have made an error in not checking more closely what had/hadn't gone out with your bank switch - which is likely to be costly for you unfortunately.

Regardless of reason, you are now highlighted as potentially being in financial difficulty or on the brink of it. Like any form of credit - the higher risk you now present reflects a higher interest rate.

You may be better trying to remortgage elsewhere if you don't like the deals on offer.

ViolaLass

Have you paid off the arrears?

antrobus

samcleo wrote: »

Thank you for your reply, the mortgages are paid by the rent received and I have always paid on time I am only 1 month behind on 1 mortgage ((£209), however the rate mortgage that is up to date is doubling which I think is irresponsible from the lender as I was in financial difficulties doubling my mortgage then will not helping

You say you are in "financial difficulties", your lender has worked that one out as well, and you are therefore a higher risk.

You are one bad tenant away from default.

getmore4less

Check your mortgage terms.

Chances are they will have clauses that make them connected along with any other accounts you have with the lender.