MAS no . 5 SVR

Jahangir2026

I don’t understand how the government allows them to charge customers such a very high interest rate.

dunstonh

Care 2023 thread revival.

I don’t understand how the government allows them to charge customers such a very high interest rate.

a) The borrowers are high risk of default. Higher risk means higher rate as the investors have to consider that a higher proportion of the borrowers will fail compared to mainstream borrowing.

b) Unlike high street banks, specialist lenders like MAS cannot access cheap retail deposits. They typically fund themselves through the wholesale or securitisation markets, where investors charge a premium for the additional risk — and that cost is passed on to borrowers.

c) The government is partly responsible for higher rates (not just current, but also previous). The markets have little confidence in the UK Government (high spend, high tax, low growth, anti-worker, anti-business, anti-investor with no plan to resolve and expected to get worse - all the things markets don't like in a Government). Consequently, gilt yields are running very high, which influences swap rates, which are reflected in mortgage interest rates.

Ryantemp

Does anyone know how I can obtain my existing account details for this company I had a mortgage with them from 2008 - 2014 and wish to make a complaint re the interest rate hikes , also does anyone know where I can direct my complaint as they dont appear to have any form of website.

Diaz09

The fact it was interest-only shouldn't affect your ability to claim - the issue is whether the SVR itself was unfair, not the type of mortgage you had. Since you mentioned you've got the rate history but it's confusing, it might be worth asking MAS to explain it in plain English or getting someone finance-savvy to help decode it. The key thing to look for is whether your SVR moved significantly out of line with Bank of England base rate changes during your mortgage term.