hi, i too have had similar problems with preferred mortgages. i was forced to use them back in 2005 to purchase a right to buy property. it seemed like every week they sent a letter saying the libor rate was changing so put my payments up. i was eventually able to get out of the mortgage after 12 months by remortgaging with northern rock (i know, out of the frying pan and into the fire!!!) to do this though i was charged a ridiculous fee. did you manage to get in touch with them and if so would it be possible to forward their contact information. much appreciated if you could.