first plus rate change

mummyof2_2

Today received letter that my first plus loan is going up by 0.3% from 9.4 to 9.7%. I know that the rates used by first plus are based on the FHBR but do not understand why they have gone up and not stayed the same (as the FHBR says they have remained the same in Jan) ? Can anyone explain -

Frustrated mummyof2!

dubsey

My sister has a variable rate secured loan with these awful people. Hers has increased twice, when she asked why all they can tell her is it's a variable rate so therefore they can vary it if they want to!

I'm afraid I don't know how they work their rates so hopefully someone here will be able to offer some good advise for you.

Zootfloot

I feel for you, My wife and i also are tied into this god awful company for the next 25 years of our skint lives.

In the past 12 months our rate has increased 5 times, initially our payments were £394 a month which was just about manageable, now they have just increased to £433 a month.

Looking back i feel sick to the bottom of my stomach to think that i was so gullible as to take out our secured loan with these people, since that moment we have never been so strapped for cash....isnt hindsight a wonderful thing

juliedawn_2

I'm in the same boat.There is a thread running on another forum about this...We are all sticking together and may be going somewhere about it.They put the rates up as they please..The rates are controlled by FHBR and BOE......or is it?
The FHBR went down in nov 2007...Why did our rates not go down?
The BOE rate went down in dec...Why hasn't our rate gone down?..Since nov the FHBR has NOT gone up...Why has our rates gone up?.......our rate started at 7.9% to lure us ...how stupid we were......Silly us took out PPI...tried to cancel it but the balance of it stays on the loan so we'll be paying for it still and no cover......Our payments are £580 a month now....Soon we'll have to sell up and go into rented....Everything is going up but wages aren't
RANT OVER LOL

juliedawn_2

I'll apologise now if i'm not supposed to do this but theres a great thread about first plus on the moneysupermarket forum.have a read.

pink_muppet

Yes ours have just gone up aswell in line with recent interest rate rises the letter said, what?????, it's complete tosh if you ask me and they're a law unto themselves

fortunately for us it's being paid off in March when we move, will never touch them again

Phantom_Flan_Flinger

Unfortunately, you signed up for a variable rate loan.

They entice you in with their initial competitive rate and once you're in, they can raise the interest rate as they see fit.

Dylanwing

FirstPlus are the scum of the Earth. Not a very constructive post I know, but I just have this hope that somebody will read this and not take that loan recommended by Ms Vorderman. Looking at these Forums, do they actually have ANY satisfied customers? Well, apart from the aforementioned Ms Vorderman.