Unregulated pre 2004 current mortgage

EssexHebridean

Does the OP by any chance fall into the Mortgage prisoners camp, I wonder? That might explain why they're still on the original deal? 

MWT

EssexHebridean said:

Does the OP by any chance fall into the Mortgage prisoners camp, I wonder? That might explain why they're still on the original deal? 

Entirely possible, but without some answers we are never going to be able to suggest where to go for some help...

tls123

Kensington took on a lot of interest only mortgages/ self certified income (ie no requirement to prove affordability) with the expectation the property would grow in value over the course of the mortgage 20 years plus then at retirement the borrower would sell to pay of the mortgage. These mortgages are maturing all the time and causing a time bomb. 

MWT

tls123 said:

Kensington took on a lot of interest only mortgages/ self certified income (ie no requirement to prove affordability) with the expectation the property would grow in value over the course of the mortgage 20 years plus then at retirement the borrower would sell to pay of the mortgage. These mortgages are maturing all the time and causing a time bomb. 

That is my expectation here as well, hence the earlier questions.

Barb1954

Thank you for your reply’s. This unregulated mortgage started with 3 secured loans with gemoney which were transferred into this mortgage and settled our existing mortgage. All the loans had PPI and we presume large commissions. We have been trying since 2011 to reclaim the PPI. The PPI alone amounted to £7,200.00. We had no idea about PPI. The broker of this mortgage transferred the loans with PPI on to the mortgage. Actually, we never met the broker it was all done over the telephone with a man called Chris. This mortgage was sold to Kensington in May 2016. Kensingtons terms were to exclude any PPI claims. 

This agreement for 25 years is a secured credit agreement. It was in May this year when we first saw a copy of the agreement - sent to us by Kensington. The interest is 6.5%. Since we have found out it is unregulated and we cannot use FSCS or FOS this agreement is known as a CCA legacy back book loan. Apart from it not being signed by the lender the terms and conditions are unfair especially in default - demand immediate payment of the total loan if we fail to make a payment within 28 days of it becoming due. We are outside of the statutory legal framework which has been confirmed by Kensington. We have just over 4 years left to run and 48k approx left to pay. 

MWT

Barb1954 said:

We have just over 4 years left to run and 48k approx left to pay. 

Do any of the 'unfair' terms prevent you from paying it off early?

penners324

Get it remortgaged onto a lower interest rate.

I suspect the ppi on loans and on the mortgage is too old to try and claim back.

Hoenir

Barb1954 said:

Can Kensington use the original unfair terms and conditions in the original agreement. 

Kensington bought the mortgage book of the old lender as it existed. This will sit ring fenced until such time as the mortgages contained within are either repaid, transferred to a new lender as a new mortgage, or defaulted upon and written off. Standard practice is to retain the T&C's of the existing mortgage contracts. Too costly and expensive (i.e unprofitable) to warrant an exercise of revision. Simply allowing a natural run-off / wind up of the book to take it's course. 

MattMattMattUK

Barb1954 said:

Thank you for your reply’s. This unregulated mortgage started with 3 secured loans with gemoney which were transferred into this mortgage and settled our existing mortgage. All the loans had PPI and we presume large commissions. We have been trying since 2011 to reclaim the PPI. The PPI alone amounted to £7,200.00. We had no idea about PPI. The broker of this mortgage transferred the loans with PPI on to the mortgage. Actually, we never met the broker it was all done over the telephone with a man called Chris. This mortgage was sold to Kensington in May 2016. Kensingtons terms were to exclude any PPI claims. 

This agreement for 25 years is a secured credit agreement. It was in May this year when we first saw a copy of the agreement - sent to us by Kensington. The interest is 6.5%. Since we have found out it is unregulated and we cannot use FSCS or FOS this agreement is known as a CCA legacy back book loan. Apart from it not being signed by the lender the terms and conditions are unfair especially in default - demand immediate payment of the total loan if we fail to make a payment within 28 days of it becoming due. We are outside of the statutory legal framework which has been confirmed by Kensington. We have just over 4 years left to run and 48k approx left to pay. 

I fail to see how any of this makes the mortgage unfair, it just seems you took out a product you do not understand. 

silvercar

Barb1954 said:

Thank you for your reply’s. This unregulated mortgage started with 3 secured loans with gemoney which were transferred into this mortgage and settled our existing mortgage. All the loans had PPI and we presume large commissions. We have been trying since 2011 to reclaim the PPI. The PPI alone amounted to £7,200.00. We had no idea about PPI. The broker of this mortgage transferred the loans with PPI on to the mortgage. Actually, we never met the broker it was all done over the telephone with a man called Chris. This mortgage was sold to Kensington in May 2016. Kensingtons terms were to exclude any PPI claims. 

This agreement for 25 years is a secured credit agreement. It was in May this year when we first saw a copy of the agreement - sent to us by Kensington. The interest is 6.5%. Since we have found out it is unregulated and we cannot use FSCS or FOS this agreement is known as a CCA legacy back book loan. Apart from it not being signed by the lender the terms and conditions are unfair especially in default - demand immediate payment of the total loan if we fail to make a payment within 28 days of it becoming due. We are outside of the statutory legal framework which has been confirmed by Kensington. We have just over 4 years left to run and 48k approx left to pay. 

The answer now is to see a mortgage broker, with a view to transferring to a new deal at a better rate. Why pay 6.5% of you can pay a lower amount?

In default the lender would need to go to court to seek possession. So repayment of the total loan may be in the T&Cs, but it won't be enforceable within 28 days.

48k over 4 years, putting that in an online calculator gives monthly repayments of £1,138. (in total you'll repay £54,639
of which £6,639 is in interest. if you could get a better deal at say 5%, your monthly repayments would be £1,105 (in total you'll repay £53,059 of which £5,059 is in interest).