SPML/LMC anyone claimed for mis selling and unfair charges?

[Crapstone]

It doesn't seem that long ago that we were seeing rates over 11%, allowing for our product margin of 3.25%. That was painful!

[zither]

Hey it actually went up on Friday!. Here we go again!.

[landy_alert]

I know it's not SPML or Capstone, but in a similar subprime vein, our rate with Swift was as high as 15.77% at one point in 2007, which is no consolation to those of you still struggling but I would have been glad of anything under 10% back then. Throughout the time we were with Swift it never dropped below 14.52%.

 

The rate of our C&G mortgage which we had at the same time was 6.75%.

[midge61]

Hi all

 

Does anyone know how they work out what the margin should be? My mortgage is 4.25% plus LIBOR.

 

I took my mort via a broker and had not been in arrears with my previous company for 6 mths but had had arrears of 1 month before that due to the mort companys mistake which they had to repay my charges for via the fos.

 

I think my margin is quite high but don't understand how they come to that amount. I am having trouble with Capstones at the moment due to them making up arrears but it has been dealt with by the fos once and seems like it will have to go to them again!

[WormHasTurned]

Sorry Midge, don't know the answer to that - but for info my margin is 1.75% - I guess, like a lot of things, it's what they think they can get away with charging and what they can get you to agree to at the time.

[Dangermouse]

Some companies like Kensington don't use LIBOR they use SVR (Standard Variable Rate ) plus a %age. I had assumed for a long time that it was LIBOR + and was not at all happy when I checked the documentation!

 

Dangermouse

[Crapstone]

Hi all

 

Does anyone know how they work out what the margin should be? My mortgage is 4.25% plus LIBOR.

 

I took my mort via a broker and had not been in arrears with my previous company for 6 mths but had had arrears of 1 month before that due to the mort companys mistake which they had to repay my charges for via the fos.

 

I think my margin is quite high but don't understand how they come to that amount. I am having trouble with Capstones at the moment due to them making up arrears but it has been dealt with by the fos once and seems like it will have to go to them again!

 

I did come across something on the net meant for brokers which gave all the catagories and the margins ..ranging from light subprime to fully loaded and it gave what each meant. i.e. defaults, CCJ's, mortgage arrears.

[midge61]

thanks crapstone will have a google and see what it comes up with.

 

I would of thought this is something the brokers should make you aware of. I never realised there was any variation until I started looking at the prospectus and began digging.

[WormHasTurned]

Hey it actually went up on Friday!. Here we go again!.

 

Fortunately it's gone down again today (to I understand a record low) of 0.68% - and today is important for us Crapstone customers, as today's rate sets the rate we pay for the next 3 months - enjoy it while it lasts!

[Crapstone]

Don't forget to still check your statements as they send ones out that are incorrect. And they don't listen when you point out it's them that have made the error until you shove it down their throats with knobs and whistles on it.

[enoughisenough]

Crapstone is absolutely right. Check these with a bloody fine tooth comb. If anyone can afford to have your statements professionally and independently audited I strongly recommend that you do so. Incidentally is there any archive of historic 3 month libor rates? It seems impossible to find it. Freedom of information request perhaps?

[midge61]

These are the ones published on the BBA website

 

BBA – British Bankers' Association - Rates

[enoughisenough]

Hi midge

 

That's great but been bumping around this for a while. Any idea where the historic and accurate UK libor rates can be found?. I doubt the bba are going to tell me what the 3 month libor in september 2005 was. I'm after each quarter since then. I've contacted them but thus far nothing.

[Crapstone]

Hi midge

 

That's great but been bumping around this for a while. Any idea where the historic and accurate UK libor rates can be found?. I doubt the bba are going to tell me what the 3 month libor in september 2005 was. I'm after each quarter since then. I've contacted them but thus far nothing.

 

I had similar trouble finding a site and I did in the end but unfortunately I bookmarked it on my other computer which has since died.

 

I'm sure it was all listed on an economics site, London School of Economics comes to mind but that was a few months ago now and I'm not even certain that's the correct name but try it anyway.

 

I know I printed them all off and they are buried in all the masses of paperwork we have on Capstone and SPML so I'll try to find them out for you when I get a chance.

[wot2do?]

This any help

 

Historic LIBOR Interest Rates ? LIBOR index history - LIBOR history

 

I have my own spml problems, but trying to deal with my employer first

[enoughisenough]

That's great capstone. Having this info would be great. I bet they've been shoddy here as well. What a stick to beat them with when they come calling. How they going to explain that one eh?

[gustavius rex]

Ladies and Gentlemen,

 

The conspiracy thickens and having done my best to go through what documentation l've had available, l'm very very upset! To start with, let's talk about the lenders rights and as to what is stated in my mortgage deed para 38. Transfer of Rights;

38.1 The Lender may sell, assign, or transfer any or all of the Lender's rights, benefits and obligations under this Mortgage and any other security interest entered into under this Mortgage and any of the Secured Amounts to anyone at any time(s).

 

38.2 lf the Lender shall sell, assign or transfer any or all the rights, benefits and obligations under this Mortgage or any other security interest entered into pursuant to this Mortgage, Your own rights, benefits and obligations under this mortgage will stay exactly the same but You will be bound to the person to whom the Lender has sold, assigned or transferred this Mortgage and/or the relevant Secured Amount. That person will TAKE ON THE LENDER'S POWERS, RIGHTS, BENEFITS AND OBLIGATIONS TO YOU INSOFAR AS THESE ARE SOLD, ASSIGNED OR TRANSFERRED AND THE LENDER WILL BE RELEASED AUTOMATICALLY FROM IT'S OBLIGATIONS TO YOU INSOFAR AS THE LENDER'S OBLIGATIONS ARE ASSUMED BY THAT OTHER PERSON.

 

Guys, what this means is that we are defrauded of the most basic rights under any normal contract erformance. The lender floggs your ''beneficial''

part of the mortgage and is thereby released from any and/or all responsibilities INSOFAR AS THE LENDER'S OBLIGATIONS ARE ASSUMED BY THAT OTHER PERSON????????????????????????????????????????

 

We do not know, we will proberbly never know, but, the Lender has the ultimate weapon against us as he can on the one hand claim that The Other Person is responsible, why, on the other hans claim that The Other Person has not assumed full responsibility, but, only enjoys the benefits of the Mortgage. Catch 22 for us and the doomsday machine for the lender as he will always be in the right and you and l will always be forced to bend down! The caveat is IF here as in IF THE OTHER PERSON LIKES TO TAKE ON OBLIGATIONS. We do not really know who that other person may be and what our contractual relationship to him is as we are not informed. Talk about a double wammy. This needs a very smart lawyers view as l consider it outright misleading. Further, any solicitor worth his £200.00 an hour should have noticed this and made me and you aware of this double edged sword.

 

Regarding our or at least my mortgage rates l'm equally peed off. l just found a statement from my lender quoting a new mortgage rate set in July 2008 and based on a LIBOR rate of 5.87%, but according to the LIBOR index the July 2008 rates for 1, 3, 6 and 12 month were 2.40%, 2.78%, 3.11% and 3.31% respective. Last time the LIBOR rate was anything near %.87% was in January 2000 when it was 5.86%. l'm now in the process of checking through the rest of my mortgage statements as well letters of changing rates, but, it seems to me that they do use 1 month LIBOR as my last letter stated that the next review would come one month on. ln any case, to me it looks like l've been had for quite some money during the years since my preferential rate finished and a thorough investigation may just be enough to start off something positive against these ...whatever....

 

Shall keep you updated

GR

[gustavius rex]

Just got off the phone with my solicitor and this is what he said:

This is a major major action and can only be done by a specialist solictor/barrister who can act with passion. Get as many people together as possible and collect enough funds to get started, i.e. a few thousand.

l have the necessary information to interview possible solicitors with good barristers and will start today. l now need commitment from those who are willing and able to participate soonest. Based on the number of people and the possible funds we can commit, we can proceed with a solicitor of common choice. Your views and comments are urgently required.

Gustavius

[gustavius rex]

One more item of interest. ln my mortgage agreement it states that the mortgage rate shall be calculated on a monthly basis or at least 4 times a year and be the 3 month LIBOR + premium. l've checked some of my statements and rate adjustments and in every case the LIBOR charged is double the historical Libor rate for that particular period! Even if l calculate the rate based on the previous month and interpolate it become a double LIBOR rate! l urge everyone to check their statements out.

G

[midge61]

Hi

 

Well it seems they have updated their site re LIBOR correctly. Will double check when I get my notification from them.

 

Will also check my previous statements .

 

My mortgage docs say the same as yours about their right to sell on and me have no change in my obligations even though they only sent a letter stating that all future payments would now be to Capstones.

 

I wrote to them when my fixed rate was due to come to an end to ask what alternatives they could offer and what they could do to help if I hit problems paying. Their reply was that they were not mortgage lenders or financial advisors and so I should seek proper advice.

 

I think it would be good if we could find a firm of specialist auditors to check all our accounts. Bet that would turn up a few nasties. I know most of my statements do not make sense and even the FOS adjudicator couldn't believe how bad they were.

[zither]

Sorry to stick my nose in here, but isnt there something in contract law about third party contracts does this also affect mortgages? or am I talking crap?, just a thought:|

[gustavius rex]

l have access to what l believe is a serious, specialized and engaged firm of solicitors. lf l can raise enough interest and not only talk, then l shall approach them for advice.

 

As for contract law and securitisation, these are two different issues. Capstone are officially nothing but administrators, i.e. appointed by the lender to administrate the mortgage. But, who's the lender? and who's in charge and instructing Capstone? According to the mortgage deed Preferred or SPML may no longer have any obligations towards to borrower, hence, who is then responsible for the setting of my and your mortgage rate? who's determening and is responsible for the LIBOR to be applied? As a matter of fact, this is now so fluid that non of us have a clue as to who owns what, is responsible for what, and why have we not been informed by the administrator about our mortgage situation? l need some answeres and that very soon or l shall take measures required to obtain this information.

GR

[enoughisenough]

GR you are on a roll here. I have been up to my eyeballs in other stuff but that is breaking soon. I think I may have some of the answers we are looking for here. Give me a little more time and I will contribute some pieces to the jigsaw. Good on you for getting the ball rolling with some proper legal advice.

[zither]

Its a flammin nightmare! How do we know that "Capstone" isnt some guy sitting in his semi detached somewhere and we`re paying him. After all Preferred is no more?.

[mercyblue]

GR do you have any evidence that your contract has been broken?