SPML and Capstone Mortagges

aulora · 14 October 2009 at 11:20PM

Thanks to the two posters who answered my querie so far; that was helpful.

I have done a little reading and it seems that most 'trackers' are hinged to the Bank of England rate, which presumably is generally more stable; it seems only "specialist" lenders attach to the LIBOR, and that this option is not generally desirable for the borrower, but good for a lender in the position of being able to 'fling their weight about'? My concern is if the LIBOR rate shoots up, as it surely will at some point in the not too distant future, I could be back where I was with the fixed rate or even worse. I presume LIBOR is remarkably low at present, which is why in coming off the fixed rate my position looks good - but it won't last, I think is the thing...

Any more comments will be very welcome.

Thanks.

Wutang_2 · 15 October 2009 at 9:25AM

aulora wrote: »

Thanks to the two posters who answered my querie so far; that was helpful.

I have done a little reading and it seems that most 'trackers' are hinged to the Bank of England rate, which presumably is generally more stable; it seems only "specialist" lenders attach to the LIBOR, and that this option is not generally desirable for the borrower, but good for a lender in the position of being able to 'fling their weight about'? My concern is if the LIBOR rate shoots up, as it surely will at some point in the not too distant future, I could be back where I was with the fixed rate or even worse. I presume LIBOR is remarkably low at present, which is why in coming off the fixed rate my position looks good - but it won't last, I think is the thing...

Any more comments will be very welcome.

Thanks.

As mentioned, it depends on equity and credit rating.

And Libor cannot be manipulated (good for a lender in the position of being able to 'fling their weight about'), there are a few versions of it but they are all very low.

Overpay!!

aulora · 17 October 2009 at 12:28AM

Thanks, Wutang. I think the equity is reasonable: The motgage is for £145,000 and the house is worth at least £190,000 (where I live in Scotland house prices are not dropping). I'm not sure what my credit rating is - I suppose I should find out; it should be better than it was when I took out this mortgage.

Can you say what you mean by 'overpay'? (am supposing you mean pay more than I need to into the mortgage while the rate is low? Will they let me do that? I have been struggling to pay the fixed rate that is just about to come to an end next month, and I am very anxious to ensure I don't end up with even higher payments)

Thanks very much.

aulora · 17 October 2009 at 7:12PM

I have checked my Experian credit report and they give me a score of 708, which is described as "Poor". I need, I think, a score of over 720 for the score to become "Fair". One of the reasons for my "poor" score as identified by Experian is that I am not on the electoral roll (the other is that I have high outstanding "debt" other than my mortgage, which is actually Hire Purchase for my car! - about £7,000 - perhaps I should be walking the forty miles between my home and my work!).

I can't do anything about the car payments just now but I have recently sent off the form to register on the electoral roll, so I should appear on the roll very soon: does anyone know how much this will help my credit score? A little? A lot? Diddly squat?

Thanks in advance of any replies.

scrounger_2 · 17 October 2009 at 7:54PM

aulora wrote: »

I have checked my Experian credit report and they give me a score of 708, which is described as "Poor". I need, I think, a score of over 720 for the score to become "Fair". One of the reasons for my "poor" score as identified by Experian is that I am not on the electoral roll (the other is that I have high outstanding "debt" other than my mortgage, which is actually Hire Purchase for my car! - about £7,000 - perhaps I should be walking the forty miles between my home and my work!).

I can't do anything about the car payments just now but I have recently sent off the form to register on the electoral roll, so I should appear on the roll very soon: does anyone know how much this will help my credit score? A little? A lot? Diddly squat?

Thanks in advance of any replies.

I can tell you that when i got my name put on the roll mine went from poor to fair almost instantly. So i hope yours does the same:D

aulora · 17 October 2009 at 8:33PM

Thanks, scrounger! I am hoping you are right, as I only need about "12" scores to take me into "Fair". I will post back when I know.

What I am curious about is how they come up with the scores... the Experian site tells you everything except what you want to know, which is how they calculate the score! Very annoying.

Thanks again.

aulora · 19 October 2009 at 8:59PM

I have another question I hope someone might help me with:

What is the difference between "Capital Repayments" and "Overpayments"? I see some providers allow one and not the other or neither.

I have never overpaid on anything and am confused about what these are and how I go about making such 'extra payments' into my mortgage while I have a period of low rates?

Does anyone else with an SPML/Capstone mortgage (that is about to come to the end of its 2 year fixed rate) know if I can make 'extra payments' and how I do it?

Many Thanks

scrounger_2 · 19 October 2009 at 9:43PM

aulora wrote: »

I have another question I hope someone might help me with:

What is the difference between "Capital Repayments" and "Overpayments"? I see some providers allow one and not the other or neither.

I have never overpaid on anything and am confused about what these are and how I go about making such 'extra payments' into my mortgage while I have a period of low rates?

Does anyone else with an SPML/Capstone mortgage (that is about to come to the end of its 2 year fixed rate) know if I can make 'extra payments' and how I do it?

Many Thanks[/QUOTE

I may be wrong but I dont think Capstone do any sort of mortgage that you make extra payments on. The only extra payments they receive are the ones they get from poor sods that miss a payment. I finish my fixed rate in Dec I may stick with it for a while as the LIBOR is low.Then start looking again next year.

SPML and Capstone Mortagges

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