Mortgage Rate rise and time

malcbarnes1

Hello. Newbie. 
I have two BTL mortgages with Birmingham Midshires. Fixed at 1.7%.
I've had paperwork recently, but nothing about rate rise. Emailed and no response. Spoke to a FA and he said they will contact you.  

On the 15th December I received notification my new rate would be 9.56% and is payable from the 1st January 24. Due to Christmas that gives me 5 working days to sort it. I have a house for sale that will clear both, but that's not happening any time soon sadly. 

I called and eventually got through to BM. I was told they cannot discuss it and I have to use an FA. 

Is there any legislation that covers a drastic rise with no time to put anything in place? To me it's quite crazy.

Many thanks

la531983

Was there not an end date stated on your current product when you took it out?

amnblog

The original Offer would have outlined that the fixed rate has a closing point and you would then go on to the Lenders standard variable rate (SVR currently 9.59%).

We could secure you a new rate with BM Solutions today, but that is not smart if you intend to replay the mortgage from an upcoming property sale (you would be looking at a minimum 2% early repayment charge if you take a new rate for January).

Unfortunate timing.

malcbarnes1

la531983 said:

Was there not an end date stated on your current product when you took it out?

Yes there was of course. This is why I mailed BM a while ago. No response and trying to call is a joke, as is 9.59.
The timing has unfortunately caught me and I firmly believe when I contact them they should be responsive, not dismissive. 
I kinda expected some contact from BM weeks ago if for no other reason than they protect their investments. 

malcbarnes1

amnblog said:

The original Offer would have outlined that the fixed rate has a closing point and you would then go on to the Lenders standard variable rate (SVR currently 9.59%).

We could secure you a new rate with BM Solutions today, but that is not smart if you intend to replay the mortgage from an upcoming property sale (you would be looking at a minimum 2% early repayment charge if you take a new rate for January).

Unfortunate timing.

amnblog said:

The original Offer would have outlined that the fixed rate has a closing point and you would then go on to the Lenders standard variable rate (SVR currently 9.59%).

We could secure you a new rate with BM Solutions today, but that is not smart if you intend to replay the mortgage from an upcoming property sale (you would be looking at a minimum 2% early repayment charge if you take a new rate for January).

Unfortunate timing.

I agree, the timing is horrendous. Once upon a time you could talk to a lender. 

I agree with your offer. I have checked this out. The SVR is a joke. If it was below 7 even I'd of got on with life. 

BM just do not communicate with me, that is until last Friday. 

Hoenir

The SVR is public knowledge. However it will continually fluctuate. BM will not provide you with advice. From their perspective nothing to discuss. As BTL is unregulated business lending. 

ACG

BTLs are commercial lending. You are a business in essence and do not have the safety net that an individual would have. 

There would have been a letter sent out to advise you of your options (switch to a new product, go on to the SVR or switch to a new lender). If you have not received it, that is unfortunate but nothing can be done about that as they can prove it was sent, you cant prove it was never received. 

You have a choice:
1) Speak to a broker, and switch product that will be the quickest way and should avoid you having to go on to SVR if done pretty sharpish. 
2) Pay the SVR for a month, maybe 2 and switch lenders. 
3) Sell the properties but that might take longer to go through.