Mortgage Interest Support, MI12 and JSA3

[BlurredFX]

Michelle,

 

It might be best to start your own thread, as this is going a little off topic.

 

Sadly, the area of law you are looking at I have no experience.

 

Cheers

 

FX

[michellej1]

blurredFX , thanks for your reply , I am still looking into this , plus I have another concern , if you enter an agreement with lenders and payments are set from the interest rate (prescribed term) the interest rate is lowered before the first payment (resulting in lower payments) but payments are set at first interest rate , would this also be misrepresentation , I believe so , but all thoughts welcome ,

[andydd]

I agree, a new thread would be better, but i have the feeling you are just barking up the wrong tree to be honest. Although to be honest i don't fully understand your point(s).

 

Andy

[michellej1]

Andydd , you sign an agreement on monday , interest rate 8.3% , repayments £260 per month , first repayment 4 weeks from date of start of agreement ,

 

On the friday / 4 days after agreement is signed interest rate is dropped to 8.0%

 

no notification ,so the repayments are set @ 8.3% and continue like this for 12 months then jump above the original contractual interest rate , the interest rate has increased 15 times , not once notified ,

 

interest rate reached 12.9% , and yes you guessed never notified , my monthly repayment never altered once and continued to be £260 ,

 

£260 was set at 8.3% , 12.9 = £370 , I was not given a option to increase my monthly repayments as I was not notified , the extra amount that 12.9% would equal was added to the outstanding balance and subject to interest ,

 

so in reality , this is breach of contract , as the agreement was for 300 months , to conceal interest increases and to add the extra amount needed to cover the monthly repayments to balance is wrong and stops the contract performance , as can not end after 30 months / debt not discharged

[andydd]

Still dont follow this, are we talking about a fixed rate or a variable rate loan/mortage ?

 

I myself have 2 mortgages, one is fixed rate of 5.2% and for a fixed period, so the amount i pay will be the same, the other is a tracker (its BoE base rate +2%), currently its 2.5%, I have a standing order set up top pay this, if the BoE rate changes though, so will the amount I pay, I dont think my lender will write to me everytime it changes, I dont think they are obliged to either, its upto me to make sure I pay the correct amount.

 

Andy

[michellej1]

I do not agree with your thoughts Andydd , if the interest rate is increased your lender has a duty to inform you 30 day before any changes take effect ,

 

so they can just increase the interest rate ?, which increases your monthly repayments , you are not notified and the extra costs per month are concealed and added to balance ,

 

its not hard to follow Andy , and easy to see this is not right

[nks22]

The cut in interest payments was discussed on Radio 4's MoneyBox today. Apparently only a minority of recipients are unemployed with most being either disabled or on Pension Credit. Shelter have asked that the government pay according to actual rates rather than the same percentage for everyone. No-one from the government would speak to the programme.

 

I had my letter last week to say my payments were being reduced. Just one week's notice and with no explanation given for the reduction. It must be very confusing for many claimants.

[andydd]

Nks22.

 

You may like to see my thread http://www.consumeractiongroup.co.uk/forum/showthread.php?277298-SMI-Mortgage-Interest-50-Cut-!&p=3146423&highlight=#post3146423

 

about this.

 

Andy

[nks22]

Thanks. Will do.