firstplus interest rates

bulldogforever

I had a loan with Barclays Firstplus (Elderbridge) the interest rate was very high on it as it did not reduce to reflect the reduction in BofE base rates.
So my question is has anyone had any success in complaining about this and getting some redress??
Thanks in advance

[Deleted User]

Unless the rate was guaranteed to drop, then no.

Thrugelmir

Second charge mortgage holders face the risk of default shortfalls. Risk unfortunately is priced. Lenders aren't financed by the BOE. 

bulldogforever

thanks it is just that I recall firstplus had that ever so clever everywoman Carol Vorderman selling the loan as “like a Mortgage”, my mortgage went down yet my “like a Mortgage” loan from firstplus did not, I just don’t think it is very fair.

I remember also a number of people complained about this unfairness and was hoping someone had success

edwards97

Deleted_User said:

Unless the rate was guaranteed to drop, then no.

I think variable loan means just that. It must be guaranteed to go up and god forbid..... Down! 

Thrugelmir

Second charge lending which is normally for individuals with impaired credit carries a significant risk for the lender. Lending rates have no direct linkage to BOE base. As the BOE doesn't provide lenders with mortgage funding. 

edwards97

So why did there rates go up when boe rates went up? Initial rates are based on risk. If its variable it follows some rate. It followed boe rates when it went up and as the loan is variable it should go down with boe too. 

bulldogforever

Edwards 97:- well yes variable as I understand it would mean both up and down

 Thrugelmir:-  I feel you are saying its just the way it is, and all my fault for not being financially astute enough to realise that when they said it is like  mortgage and when the interest rate clause states a sort of link to the FHBR (which on examination is/was linked directly to FHBR) I would think that it should in all fairness have come down.

I am hoping that this is resolved in a fair way at some point and maybe someone on here would know if it had

edwards97

Well you maybe in luck.... Maybe I got paid out on just this point. I would be interested to see who else did. 

bulldogforever

edwards97 said:

Well you maybe in luck.... Maybe I got paid out on just this point. I would be interested to see who else did. 

I hope you did and that the day comes when you feel at liberty to give more details, in the meantime I bid you good night

[Deleted User]

bulldogforever said:

Edwards 97:- well yes variable as I understand it would mean both up and down

 Thrugelmir:-  I feel you are saying its just the way it is, and all my fault for not being financially astute enough to realise that when they said it is like  mortgage and when the interest rate clause states a sort of link to the FHBR (which on examination is/was linked directly to FHBR) I would think that it should in all fairness have come down.

I am hoping that this is resolved in a fair way at some point and maybe someone on here would know if it had

What do the terms and conditions of your loan say about how and when the rate will vary.  The variance is not necessarily tied to the BoE, it could be in line with something else, and there could be a floor under which the rate will never drop.  Instead of going straight to redress you need to understand what you agreed to in the first place.