Anyone got any views on the legality of mortgage rate capping - fi.e. lenders now saying that a base rate tracker will not go below a certain amount and relying on the small print in the mortgage offer.
Surely there are grounds to claim mis-selling if the "cap" was not sufficiently or prominantly advertised?
My lender has just written to effectively tell me that although I had the foresight and presence of mind to sign up to a base-rate tracker deal - which was obviously my decision and risk if rates went up - I'm now not going to benefit from the latest rate reduction. Seems to me that these people are essentially to blame for the complete mess that we are now all in but I'm paying for it. Tossers!
0
Comments
There may be merit in arguing that it wasn't sufficiently prominant though..
Everybody I spoke to at the time said get it fixed now as they will probably start to soar soon. No one saw the interest rate cut coming.
Ho hum!
You're ITK on these sort of things - any word on whether the mis-selling argument is being raised and what the standard response is? (As if I didn't know already!)
Obviously if interest rates had gone through the roof they would have allowed me to apply a cap - NOT. The C***S.
Dave, i can't guess, and i don't know that anyone can. What i would say however is that i haven't had so many people making the initial moves to look at buying ( often for the first time) recently than i have in over 18 months so i sense the market will start moving- bottom line is that life goes on and this will often meen a move and at the mo, this is just creating moves for the future. When move people start looking to move there will be more buyers and then prices will increase/ steady. Seriously though- in 20 years of mortgage arranging, one thing i know is that when it comes to it, people just want to know what their mortgage will cost and the maximum loan they feel able to afford, and for the majority, recent interest rate cuts (which the majority of us haven't felt the full effect of yet) will reduce the cost so people will be able to borrow more and therefore may be prepared to pay more.
So i personally feel the market will- but i am nearly always in the glass half full camp..
I'm an independant mortgage broker/advisor, sure. ITK, not so sure. Haven't heard anything really about a mis-selling argument, but tbh, although certain sectors of the media will like to portray the image that all the lenders are imposing a collar- most of the biggest lenders aren't so it's not a large number who ae affected. True though that i have gone through most of my clients offers to look for the clause, fortunately most of my tracker biz went to Woolwich and Abbey and they haven't. I know this doesn't help you though.
I'm with the Nationwide too. "Proud to be different" apparently. I don't think so.
We went for a 5 year fixed, which still has 3 years to run. Yes a bit gutting now, but we'll be laughing when the rate soars....
I agree that the government will fight tooth and nail to keep interest rates low for as long as possible but i can't see that they'll have much choice when all the extra liquidity starts ramping up inflation, at that point we'll be on the brink of a sterling crisis and which ever way they turn UK plc will be screwed.
Anyway i was actually wondering when i saw this thread about long term fixed mortgages. Bearing in mind that i feel interest rates are going to skyrocket in the medium term what are the best 5yr+ fixed deals that are currently available?
Thks for any advice.
S.