Mortgage Libor to Kensington

Darcy78

I took out an interest only equity loan roughly 15+ years ago, from my house which was paid for then. I found out about 9 mths ago Kensington had taken over and almost doubled my agreed payments. And it's now a mortgage, I've complained to the courts with getting no sense from Kensington to ask if I do not have to pay them. Was told I had to or my house would be sold for non payments to them even though I didn't borrow off them. And didn't know I had even been taken over by them for 4 months. They have now stated they are changing the LIBOR rate to Kensington Libor rate. Which they're refusing me not agreeing to it. Is it possible I can take my mortgage/loan elsewhere when retired and on pension only. I know they're going to force me to sell my home now.

Darcy78

Would be grateful if anyone could steer me in the right direction 

Edi81

They need to change your loan from being LIBOR linked as LIBOR ceases to exist. 

Suggest you speak to a broker on whether there are any other Solutions for you eg equity release or retirement interest only. 

Darcy78

Yes I know but can I refuse the new Kensington rate ? 

Edi81

Darcy78 said:

Yes I know but can I refuse the new Kensington rate ? 

No. Somewhere probably hidden deep in the original terms and conditions there will be a fallback provision in the case of LIBOR another being available. That is where this new rate kicks in. 

Darcy78

But I haven't signed any agreements with them whatsoever. That's why this is unlawful in my eyes. I didn't even know they'd come on board with my repayment of equity lenders and are now charging me £152 month  payments on top of my agreed interest only payments. No letters of any of this sent to myself. Even the so called court agreed with them when I took them to court because refused to pay the extra. But because I had no representation the courts go against you. Money making company's helping money making companies bit like the banks with their LIBOR rates really. I can't see how I'm lawfully compelled to something I did not sign up for.

chanz4

Be in the small print

ACG

Lenders can sell mortgages to other companies, it has happened for decades and still happens now. 
Kensington now own your debt, there is nothing you can do about that apart from leave or pay it off. It is fully legal and allowed. 
As for the libor, libor no longer exists so they have to switch your rate over to something else. 

You cant refuse the changes. You have the choice of leaving. 
If you are a mortgage prisoner (it sounds like you may be), there are some lenders out there who will take you on even if you do not fit their normally criteria/affordability but they are few and far between at the minute. 

If you believe it is unlawful, you can either take it to the ombudsman or to the courts. But it will be a stressful period and wont happen overnight and in the nicest possible way, if you are retired do you really want to be spending what should be easier years in a court battle with a bank? 

Darcy78

Thank you for your time and that info. Some facts I didn't know. But need to say again my lenders haven't sold my mortgage or loan because I still have to pay them. Kensington have come on as a second lender and are charging me too for same monies I took in the original equity . So now doubling my original payment of 15 yrs which was contracted. Can you give me any advice on this matter?

Edi81

So how did you come to have this mortgage is you didn’t sign up to it?

Darcy78

I didn't even know Kensington they just appeared from nowhere. I have two mortgage lenders now with two different companies. Kensington refuse to go away, even cancelled their payment in bank. Nothing said then 3 months later their payments appeared again they even have a hold on my house they've told me.