Mortage question

[Bus no 808]

Hello everyone,

 

I would welcome your advice to the following,

 

two years ago Mrs 808 and I obtained a mortgage through an IFA who gave us very good advice. We were in the sub-prime market with me having a CCJ. He advised to get a fixed rate, Mrs 808, however was totaly against this and we went for a rate tracked to LIBOR. one condition of the mortgage co was that we must pay to get the CCJ satisfied, this was completed by our solicitor and no problem with this since paying.

 

However our mortgage has increased from £230.00 pm to £311.00pm in the space of two years. We have not missed a payment with the mortgage ( or anything else ) since.

 

Would fellow CAGers advise: go for a remortgage ie we are being ripped off, or stay with mortgage co and write that ( words to effect of ) We would like to stay with you but think you are taking the micky and if you do'nt reduce then......

 

Thanks for reading this and all replies appreciated

[gizmo111]

However our mortgage has increased from £230.00 pm to £311.00pm in the space of two years. We have not missed a payment with the mortgage ( or anything else ) since.

 

Thats because the interest rate has increased and you chose a tracker, had you taken a fixed rate as advised the payments wouldn't have risen.

 

Would fellow CAGers advise: go for a remortgage ie we are being ripped off, or stay with mortgage co and write that ( words to effect of ) We would like to stay with you but think you are taking the micky and if you do'nt reduce then......

 

Well you are not being ripped off, but if the decision to remortgage woudl depend on if you ahve any early redemption fees and how old the CCJ is. If the CCJ is coming ot near the 6 year mark then it will drop off your credit file and depending on your other fianances you may be in the position to remortgage with a high street lender.

You can write to them by all means but if yo uare still tied in then they won't ofer you anything without charging the ERC, course if any deal has come to an end you can ask what else they have on offer for current customers.

[Bus no 808]

Thanks for the reply Gizmo,

 

The CCJ was about 6 years old when I paid it. We are tied to current mortgage co for 2 years, this ends in October.

 

I will write to mortgage co asking for a new deal and see what they come up with.

 

I realise we are not being "riipped off " now just interest rate rises, 'luck of the draw' as I say.

 

Now realise post was a bit of a "rant" and your reply has brought me back to earth. thanks.

[Pudseyowl]

Who is your current lender?

[Conniff]

You said your interest follows LIBOR. This is not affected by the BOE interest rates only in the rate banks charge each other. You must have noticed that your interest payment has not increased every time the boe rate has increased and that in fact it goes down without any change in the boe interest rate.

If your rate of interest is following the boe rate then you are not in LIBOR.

[Bus no 808]

Sorry for the late reply......

 

Our lender is Platform Home Loans. Just checked and we deffo have a LIBOR tracker Mortgage.

Since we obtained the mortgage it has gone up nearly every month over a two year period. We are tied to them untill November.

It started at About £220.00 Per month and is now about £320.00 per month.

Because of my age we could only get a twenty year loan, we purchased our council house and the mortgage is about one third the value of the property at present. Mrs 808 and I are easily able to afford this amount

but why pay more than is necessary?

Conniff, I do'nt know what BOE means.

[jansus]

Bank of England

 

If you are not tied after November I would start researching different mortgages and rates now so you are prepared - dont forget about redemption fees and fees to change your mortgage - there a few internet sites that are useful tools.

 

I chose a fixed rate with YBS which has been good -they are doing a long term fixed rate at the moment - you have to weigh up knowing your monthly outgoings against the chance of the rates going down .

 

If we knew the answers we would all be rich!

[Conniff]

Sorry 808 I misread. I thought you had said your rate was increasing in line with the Bank of England (BoE).

 

The Libor has been on a steady up since about 2003, but is now leveling out and showing signs of falling, so you should start to benefit soon.

 

Have a look at the graph here and you can see how it has been going.

 

1 Year LIBOR - Rate, Definition & Historical Graph

[Bus no 808]

We are thinking about it.

Bank of England dhurrr. Should of known that one!!!

The IFA we used last time said he would not charge us next time so I will ring him soon.

It is a big gamble with fixed rate mortgages ( and trackers ) now where did I put that crystal ball .

[Bus no 808]

Thanks Conniff, Informative link.

Hope they bring it down as fast as it goes up.