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  • FIRST POST
    • Crown
    • By Crown 18th Jun 07, 5:08 PM
    • 1,340Posts
    • 738Thanks
    Crown
    Grrr, Mortgage comapny increased my interest to 10.25%
    • #1
    • 18th Jun 07, 5:08 PM
    Grrr, Mortgage comapny increased my interest to 10.25% 18th Jun 07 at 5:08 PM
    Just when I think im making headway it all goes pearshaped. I recieved a letter today telling me that my mortgage rate will be increasing to 10.25%

    As we have appalling credit we took a offer from Kensington mortgages 3 years ago and was paying 6.5% discounted and its slowly crept up. I am amazed they can put the rate up so much on a mortgage. When I questioned them today over the phone that I hadnt heard of the bank of england changing the base rate they told me they do not follow the bank of england rate but London Rates??

    Anyone heard of these? I think its just legal robbery! I have made a new appointment wit hthe CCCS on Friday as its been 7 months since I last had any real dealings wit hthem and see if they can suggest something. It will also make me get my SOA upto date what I keep putting off.

    I a mwondering if my current mortgage has been increased as I had my flat repossessed earlier this month. I cant see the connection but I certainly am not having any luck with the mortgage company. Maybe Im going to have to join the Bankrupty board after all...

    Funnily although Im annoyed about this Im not going to let it get me down and see it as another hurdle to get over. My redemption time with this lender is up in August but I seriously doubt im going to be able to get another mortgage now i haver a CCJ and repossession on my file.

    Onwards and upwards!
    Last edited by Crown; 19-07-2007 at 9:05 AM. Reason: Change Title
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts
Page 1
  • Broken hearted
    • #2
    • 18th Jun 07, 5:15 PM
    • #2
    • 18th Jun 07, 5:15 PM
    (((hugs))) look around to see if you can get a better deal, it doesn't hurt to try.
    Barclaycard 3800

    Nothing to do but hibernate till spring






  • pania
    • #3
    • 18th Jun 07, 5:24 PM
    • #3
    • 18th Jun 07, 5:24 PM
    hi sweetie, sorry to hear this. the rate they are refering to is the london interbank rate, (libor) any chance you can change?
    debt @05/11/11 12210.63!! slowly chipping away!!
    impossible is nothing.
  • Burlesque Babe
    • #4
    • 18th Jun 07, 5:28 PM
    • #4
    • 18th Jun 07, 5:28 PM
    It sounds like the LIBOR. I was stuck on it with GMAC until last week. I just escaped another change - it was just about to go up to 8.25% after an original discounted year. It is horrible - are you tied in to them? If not, you'd be surprised what is available, I've just gone to 5.44% fixed for three years.
    "Stay Wonky"

    Become Mrs Pepe 9 October 2012
  • pania
    • #5
    • 18th Jun 07, 5:30 PM
    • #5
    • 18th Jun 07, 5:30 PM
    sorry hon couldn't explain as oh waltzed in. The LIBOR rate is based on how the wholesale market is performing. ie where the banks go to borrow extra money for themselves and the interest rate that they borrow from the wholesale market at. This is opposed to the bank base rate which us the rate that we borrow our money at. LIBOR is usually best avoided as it does tend to be higher and this should've been pointed out to you when you took the mortgage.
    There are companies out there that will do a remortgage as a credit repair for people in your predicament so don' loose heart. Speak to a reputable broker who shoul dknow about these types of mortgage.
    Hope it all works out.
    P
    xx
    debt @05/11/11 12210.63!! slowly chipping away!!
    impossible is nothing.
    • Crown
    • By Crown 18th Jun 07, 5:34 PM
    • 1,340 Posts
    • 738 Thanks
    Crown
    • #6
    • 18th Jun 07, 5:34 PM
    • #6
    • 18th Jun 07, 5:34 PM
    I will speak the CCCS on Friday as I need to see where I stand anyhow. I personally cant see how I can get a better rate when I recently had a property repossessed.I have no arrears on my mortgage and missed on payment about 10 Months ago what was rectified and sorted immediatley.

    Even if we were to sell up and pay back all my creditors wit hthe equity in our home I couldnt afford to even really rent in London for much less than were paying on our mortgage. 10.25% to me just seems a astronomical figure but I will start looking around for a better deal. I know it sounds negative but I just cant see who will give me a loan even though I have no problerms paying around 900 a month. with this interest im never going to get debt free
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts
  • pania
    • #7
    • 18th Jun 07, 5:37 PM
    • #7
    • 18th Jun 07, 5:37 PM
    will pm you crown.
    debt @05/11/11 12210.63!! slowly chipping away!!
    impossible is nothing.
    • lynzpower
    • By lynzpower 18th Jun 07, 5:41 PM
    • 24,745 Posts
    • 39,940 Thanks
    lynzpower
    • #8
    • 18th Jun 07, 5:41 PM
    • #8
    • 18th Jun 07, 5:41 PM
    Crown how much are you paying on your mortgage and what size place do you have?
    Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast
    • Crown
    • By Crown 18th Jun 07, 5:49 PM
    • 1,340 Posts
    • 738 Thanks
    Crown
    • #9
    • 18th Jun 07, 5:49 PM
    • #9
    • 18th Jun 07, 5:49 PM
    4 Bedroom house (more like 3 rooms and a cupboard) In London worth approx $200,000 I should think. We currently owe $107,000 and this is over 15 years!

    My/our debts total approx $39k so there is equity. My mother who owns the house and signed half of it across to me a few years back is now 62 and although she still works running her own nanny/childminding business I cant see her mananing to do it for much longer. I really need to get something sorted out.
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts
    • oops a daisy
    • By oops a daisy 18th Jun 07, 6:25 PM
    • 2,427 Posts
    • 3,467 Thanks
    oops a daisy
    omg crown - that rate is daylight robbery. Sorry can not offer any advice as I have never heard of LIBOR but dont give up. I hope you manage to get a better mortgage soon. All the best - OOPS
    Official DFW Nerd Club Member #37 Debt free Feb 07
  • mpsavuk
    Crikey, if i didn't know better i'd think i was reading a thread on an American money forum.

    10.25%? Ouch!
  • southern chick
    can't offer you any advice just wanted to send you a (((hug))), i can't believe any company can charge such a huge amount, i hope you can find another company to offer you a better deal, don't give up looking
    SC XX
    120 NSD in 2010 ----- 1/120
    Grocery Challenge of 80 a month ------ 40/80
    I pledge that in 2010 I will not spend any un-necessary money!!
  • moonlightpjs
    Hi Crown
    Big Hugs - our mortgage is with SPML (like Kensignton) and we've just had a letter about the same thing, its only gone up about 4 but as we are on a fixed rate I think its disgusting. We're tied in till next year when the interest rate goes up to 8.6% but not sure we'll get another mortgage :confused: so don't know what we'll do.

    Anyway, just to say I have the greatest sympathy for you - you'd think there would be some company who would look at your individual circumstances and not judge you on past history - just, where are they?

    Hope you get something sorted soon hun xxxx

    P.S And if you find anywhere let me know
    • lynzpower
    • By lynzpower 18th Jun 07, 7:32 PM
    • 24,745 Posts
    • 39,940 Thanks
    lynzpower
    Hi Crown
    Big Hugs - our mortgage is with SPML (like Kensignton) and we've just had a letter about the same thing, its only gone up about 4 but as we are on a fixed rate I think its disgusting. We're tied in till next year when the interest rate goes up to 8.6% but not sure we'll get another mortgage :confused: so don't know what we'll do.

    Anyway, just to say I have the greatest sympathy for you - you'd think there would be some company who would look at your individual circumstances and not judge you on past history - just, where are they?

    Hope you get something sorted soon hun xxxx

    P.S And if you find anywhere let me know
    Originally posted by weller711
    weller i dont think your fixed rate can go up can it , surely thats the whole point of it being fixed :confused:

    Worth an ask on the mortgage board or a quck call to the FSA just to make sure
    Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast
    • jonewer
    • By jonewer 18th Jun 07, 7:57 PM
    • 1,466 Posts
    • 1,692 Thanks
    jonewer
    4 Bedroom house (more like 3 rooms and a cupboard) In London worth approx $200,000 I should think. We currently owe $107,000 and this is over 15 years!

    My/our debts total approx $39k so there is equity. My mother who owns the house and signed half of it across to me a few years back is now 62 and although she still works running her own nanny/childminding business I cant see her mananing to do it for much longer. I really need to get something sorted out.
    Originally posted by Crown
    Just to clear some things up so we can all understand and better advise:

    -You had a second property -a flat - that was respossesed?
    -How did you manage to get 2 mortgages approved with an appalling credit record and £39k debt?
    -Your mother "signed over" half a house worth £200k but you owe £107k? How did you get into negative equity? And surely if you owe money on it then she actually sold it and didnt just "sign it over"
    -Where do you find a 4 bed houses in London for £200k?
  • moonlightpjs
    weller i dont think your fixed rate can go up can it , surely thats the whole point of it being fixed :confused:

    Worth an ask on the mortgage board or a quck call to the FSA just to make sure
    Originally posted by lynzpower
    I know, this is what puzzles me , it only goes up a few pounds every 3 months or so but like Crown, they quote the LIBOR :confused:
    Thanks Lynz - will post on there when I get the chance - scared of going any way other than DFW board though
  • pania
    Hi guys.

    I'm hoping i'm not going to get shot down in flames for saying this as it is with the best intentions, but i'm a mortgage advisor. I know we don't give advise here and that is absolutely fine. If anyone needs any questions answered and don't feel comfortable heading to another board i am more than happy to answer any questions as i can.

    Please note i am NOT offering mortgage advice so please don't jump on me. just ian answer regarding the questions posed.

    Hope this may help.
    Kind regards P xxx
    debt @05/11/11 12210.63!! slowly chipping away!!
    impossible is nothing.
  • rayday2
    Pania - Hope you don't mind me asking - we are with Future Mortgages been with them for over 3 years now so out of the tie in period we pay apparently approx 8.5% and it is libor goes up every 3 months or gets reviewed then anyway.

    Unfortunately you can see below my current debts which are a year old now - and we have 15k in a fixed loan for 10 years - you reckon we could better or at least get out of libor rated?

    Thanks and sorry for hi-jacking topic but OP just gave me a wake up call!
  • pania
    hiya rayday. Depending on your income compared to your level of debt and the amount of equity in your property it could be possible. Without in depth info it is pretty hard to say. If you're out of the tie in period it is definately worth looking around for a replacement and you will be paying over the odds of what is out there even for people with "adverse credit". It's an area i'm really interested in as obviously suffering adverse credit issues myself i like to be able to help out where other people have told them to take a hike!!! definately try to find a good reputable broker to speak to. Ask around your family if anyone has had any good experiences and can recommend someone to you. It's amazing the amount of people that are on the LIBOR rate, have never used it personally and don't know any brokers that have. think that's as it is so strongly variable.
    debt @05/11/11 12210.63!! slowly chipping away!!
    impossible is nothing.
    • Crown
    • By Crown 18th Jun 07, 9:50 PM
    • 1,340 Posts
    • 738 Thanks
    Crown
    Hi all, thanks for the replies. I will not let this get to me and I know i'll get it sorted out like everything else. just thought id let all my DFW Nerd mates know whats happening in my world lol
    Official DFW Nerd Club - Member no. 297 - Proud To Be Dealing With My Debts
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