Jump to content
Sign in to follow this  
ukaviator

Soon mortgage lenders could owe us money

Recommended Posts

Most of Britain's homeowners would never have dreamed that they could be paid for taking out a mortgage, but with the Bank of England preparing to cut borrowing costs today to their lowest level ever, lenders may have to cope with zero interest rates.

 

If, as many analysts expect, the Bank of England cuts rates by a full percentage point to just 1%, those with loans that track a point below base rate will find themselves paying no interest. Several thousand who took out a two-year tracker in 2007 with Cheltenham & Gloucester, an arm of Lloyds TSB, set at 1.01 points below base rate will, in theory at least, be owed money.

 

While C&G does not have restrictions on the tracker product, it says it will not allow the interest rate to sink below 0%, citing documentation accompanying the mortgage which only mentions interest paid by the customer.

 

The Financial Services Authority has warned lenders about the fairness of their mortgages as interest rates plunged. Ray Boulger, of mortgage broker John Charcol, said the FSA's stance on the C&G product would be a test case which could affect hundreds of thousands more borrowers who have trackers set below the base rate.

 

A spokesman for the FSA said: "We do require firms to make their terms clear and unambiguous to the customer." By the end of next week, Lloyds is due to take over HBOS and in turn be 44% owned by the taxpayer. It can expect little sympathy from its new part-owner. One Whitehall source said: "If they've made a contract, they'll have to pay up."

 

More:

 

Mortgage lenders could owe borrowers money as Bank of England nears zero interest-rate policy | Money | The Guardian

Share this post


Link to post
Share on other sites
Sign in to follow this  

  • Recently Browsing   0 Caggers

    No registered users viewing this page.



  • Tweets

  • Our picks

    • A shocking story of domestic and economic abuse compounded by @BarclaysUKHelp ‏ bank complicity – coming soon @A_Gentle_Woman. Read more at https://www.consumeractiongroup.co.uk/topic/415737-a-shocking-story-of-domestic-and-economic-abuse-compounded-by-barclaysukhelp-%E2%80%8F-bank-complicity-%E2%80%93-coming-soon-a_gentle_woman/
      • 0 replies
    • The FSA has announced large fines against DB UK Bank Limited (trading as DB Mortgages) - DeutscheBank and also against Redstone for their unfair treatment of their customers.
      Please see the links below for summaries and full details from the FSA website.
      It is now completely clear that any arrears charges which exceed actual administrative costs are unfair and therefore unlawful.
      Furthemore, irresponsible lending practices are also unfair and unlawful.
      Additionally there are other unfair practices including unarranged counsellor visits - even if they have been attempted.
      You are entitled to refuse counsellor visits and not incur any charges.
      Any charges for counsellor visits must not seek to make profits. The cost of the visits must be passed on to you at cost price.
      We are hearing stories of people being charged for counsellor visits for which there is no evidence that they were even attempted.
      It is clear that some mortgage lenders are trying to cheat you out of your money.
      You should ascertain how much has been taken from you and claim it back. The chances of winning are better than 90%. It is highly likely that the lender will attempt to avoid court action and offer you back your money.
      However, you should ensure that you receive a proper rate of interest and this means that you should be seeking at least restitutionary damages - which would be much higher than the statutory 8%.
      Furthermore, you should assess whether the paying of demands for unlawful excessive charges has also out you further into arrears and if this has caused you further penalties in terms of extra interest or any other prejudice. This should be claimed as well.
      If excessive unlawful charges have resulted in your credit file being affected, then you should take this into account also when working out exactly what you want by way of remedy from the lender.
      You should consult others on these forums when considering any offer.
      You must not make any complaint through the Ombudsman. your time will be wasted, you will wait up to 2 yrs and there will be a minimal 8% award of interest and no account will be taken of any other damage you have suffered.
      You must make your complaint through the County Court for a rapid and effective remedy.

      http://www.fsa.gov.uk/pages/Library/Communication/PR/2010/120.shtml
      http://www.fsa.gov.uk/pubs/final/redstone.pdf
      http://www.fsa.gov.uk/pubs/final/db_uk.pdf
       
      http://www.fsa.gov.uk/pages/consumerinformation/firmnews/2011/db_mortgages.shtml
      Do you have a mortage arears claim to make? Then post your story on the forum here
      • 0 replies
    • 30 Day Right To Reject - Vehicle Casualty Report. Read more at https://www.consumeractiongroup.co.uk/topic/415585-30-day-right-to-reject-vehicle-casualty-report/
      • 9 replies
    • I am new here but very glad to find my way here and would welcome any input.
       
      i purchased a brand new campervan conversion from Hillside Leisure (175 miles from our home) on July 26th for £31,000 and, within 48 hours, during a storm, the alarm began to sound incessantly. We could not get it to stop, even after trying everything listed in the manual. We phoned Hillside on Saturday July 28th around 2.00pm. The young man who answered the phone said he would seek the advice of their technician and call us back, which he did. The technician told us that they, Hillside, couldn’t help, but that we should take the van to Nissan (the van is a Nissan) as the fault would lie with one of their components.
       
      • 42 replies
×
×
  • Create New...