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Can the terms of a repayment mortgage contract that was a fixed rate for 5 yrs be altered during the 5 yr fixed term to a SVR? Does a fixed rate mean the amount to pay each month would remain the same for the 5 year term and not go up or down? Would that be a breach of contract if it's altered? Is it lawful? When mortgage interest is charged daily, how would that appear on a mortgage statement, each month or once a year? Thanks
I would be grateful to know if anybody who has been successful in a claim against Santander on the 2008 svr/cap margin issue could explain the grounds on which the claim was made; was it on the basis of breach of contract on the bank's part or the longer-term financial implications of Santander's application of the cap margin increase. Cheers
Hi Apologies in advance if this is the wrong part of the forum to place this. Seemed most appropriate place. I took out a 5 year fixed rate mortgage in Feb 2007 with NR. It was a 5.69% 'Help with costs + fee remortgage fast track'. It reverts to an SVR in Feb. I owe approx £216,000. The property is in Belfast and although once 'worth £280,000', it would now struggle to sell for £160,000. Basically i am about £56,000 in negative equity, with further falls on the way, with no hope of remortgaging. At the moment i am paying around £1,050 per month. When i got the key facts document originally, i completely misunderstood it. At the time the BoE base rate was 5.25%. The key facts form said that after the 5 year term the mortgage would revert to a SVR: "a variable rate, currently 7.34% for 2 years. Thereafter, a variable rate, currently 7.34%, with a discount of 0.25% thereafter, giv ing a current rate payable of 7.09%" Stupidly i assumed that if the base rate was 5.25% at the time, then the mortgage was essentially reverting to base rate + 2.09%. I know many people with other mortgages, stuck on standard variable rates. They all seem to be paying base rate + 1.75% or thereabouts. Have i misunderstood something? why is the NR SVR so high? I recently rang up to enquire as none of their documents told me how they calculated the SVR, or how or why that would go up. I had assumed it was pegged to a certain % above base rate. The guy i spoke to said the SVR is 4.79%. When i pushed him he spoke to a manager and confirmed that the SVR is 4.29% above base rate. Basically, in Feb next year, i will temporarily go down to £862.20 pcm. I had assumed it would fall much lower than that. In a few years time, the base rate will go up. The Northern Rock guy confirmed to me that it would go up by Base Rate + 4.79%. Surely that can't be right? Do they use another way of determining their SVR? at 5% base rate i'll be paying 9.29%, nearly £1700pcm. Long way off but i'll be repossessed for sure... no hope of me every remortgaging in the next decade...
Hi, I am trying to find out is it acceptble for Santander to refuse to offer me anything other than their expensive SVR? I was with Abbey, now it's Santander, had mortgage about 5 years. I had credit problems when first left Uni and had the mortgage transfered to them. I pay over £360 on an £80k mortgage. My friends who are on Variable rate have been paying half this. My mum recently had a letter from the Halifax refunding over £2k as they had locked her in an SVR when they shouldnt have. When I phoned Santander the woman said they wont offer me any other deal but I am free to go to another provider. So basically...sod off. I have no arrears and have not missed any payments for 4 years where I did get two months in arrears at one point. Any thoughts if anyone has the time. Many thanks.