Kensington Madness – or is it just me

fant123

I was wondering if anyone could advise the next course of action, I took a re-mortgage with this company in Aug 2005 on a fixed term of 2years at 6.59%. Once the fixed term has ended it leaped to a massive 9.7%, I have tried to find out why on numerous occasions but Kensington just never seem to convince me that this is correct.

On my original mortgage illustration (keyfacts document) it states the following:

The interest rate is a fixed rate of 6.59% until 31 August 2007 followed by

Kensington’s standard Variable Rate currently 5.90% plus 1.90% currently 7.80%

Am I just dreaming, I just find to hard to see were I have gone from 7.8 – 9.7%

After all the conversation’s with Kensington, the last one being 10mins ago and told I was on Bank of England rates and not LIBOR as I have been told previously, I feel the only option is to ask trading standards for there advice.

Unless someone can give me any ideas

Cheers

luckyfool

The key issue is what the "variable rate" was that you were reverting to 1.90% above. If it is Kensington's "own" rate that they can set themselves then the bottom line is they can do what they want with it. This is in line with many high street lenders who offer standard variable rates where they have the flexibility to vary it at will.

_Andy_

Nothing to do with Trading Standards. Rates have gone up and this is a variable rate which has, unfortunately, varied upwards.
Any KFI can only give an illustration of what your payments may rise to based on the rates at that time.

cooper2110

Are you in a position to move away from Kensington?

fant123

Nope thats not an option at the min, Looks like I am stuck!!

beecher

You're paying 1.9% more than their Standard Variable Rate which must've gone up from 5.90% to 7.8% since 2005.

_Andy_

Why isn't it an option at the moment?

fant123

My partner has lost her job, this has not caused us any problems as regards payments of mortgage/bills etc, but I would imagine it would make it difficult in obtaining another mortgage.