Sub-Prime Mortgages - Interest Rate Hikes

[BornThisWay]

Does anyone have any experience of this?

 

I have a sub-prime mortgage with Accord and since I came off their fixed rate initial special offer my interest rate has gone up three times - this during a period when base rate has been 0.5%. I now pay almost 8% but of course as I have struggled with the repayments, no other lender would touch me.

 

The Financial Conduct Authority have now said they are going to be looking very closely at lenders who do this to 'trapped' borrowers while base rate stays so low.

 

I have long thought how grossly unfair it is to continually put rates up when there is nothing trapped borrowers can do. Has anyone else had this experience? Accord tell me it is because I am a 'risk' but since I have a large amount of equity in my house I don't see how I am any more of a risk than anyone else. They can always get their money if I stop paying -meanwhile they have nearly an 8% return on their money - where else would they get that??

 

It would be good to compare notes in case the lenders in question don't take the very big hint the FCA are making!!

[42man]

Have you disputed this with your lender at all ? It would be interesting to see how they answer this...