Mortgage company put me on variable rate doubling my interest payments?

by Readers Question

14:02 PM, 11th June 2020
About 2 months ago

Mortgage company put me on variable rate doubling my interest payments?

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Mortgage company put me on variable rate doubling my interest payments?

I have lost my job, because of the coronavirus lockdown recently. I had a two year fixed term on a BTL property with Precise Mortgages which ran out on 1st of April and instead of giving me a new fixed term (which they refused) they put me on variable rate doubling my interest payment.

I understand that it is their right to do so, but being in the middle of the coronavirus crises with no prospect of finding a job it is impossible to find a new lender.

I wonder if anyone else is in the same position and any advice will be appreciated.

Thank you

Kin



Comments

Neil Patterson

14:04 PM, 11th June 2020
About 2 months ago

Have you asked the lender for a payment holiday?

Pat Simpson

10:57 AM, 12th June 2020
About 2 months ago

Precise do not offer transfer products which is very strange as most lenders do . Take a payment holiday to give you time to re consider your position.

Coastal

11:05 AM, 12th June 2020
About 2 months ago

I think there's going to be quite a big issue building up with fixed terms ending, as well as actual end of mortgage terms due to the Covid meltdown. With a likely recession causing property prices to reduce, possibly quite considerably as we get into the Autumn, finding new affordable deals could soon become quite challenging. This is something the Government needs to look at - in working with lenders to be more flexible and not penalise PRS borrowers as a result of the Covid market damage.

justtalk

11:08 AM, 12th June 2020
About 2 months ago

Kensington don't offer product transfers also. Should be a law against it. I am paying over double my normal rate. The Base rates have gone down but some lender are not adjusting their standard variable rates and increasing their margins.

Ross Tulloch

11:31 AM, 12th June 2020
About 2 months ago

Would not a payment holiday affect your credit rating?

Avtar Bahia

11:52 AM, 12th June 2020
About 2 months ago

Speak to L& C broker , may help you to switch. JUST BEEN SMART.

silversurfer2017

21:18 PM, 12th June 2020
About 2 months ago

How did Precise find out you had lost your job? Did you tell them?

Vincent Burch

9:33 AM, 13th June 2020
About 2 months ago

Precise only offer Product Transfers prior to the initial Term ending and for select customers. Not a policy I like with this otherwise good lender. Your originating Mortgage Broker should contact you to offer a better deal prior to you going on the banks Standard Variable Rate. Just contact a Mortgage Broker and arrange a new deal, irrespective of your employment position.

Puzzler

9:40 AM, 13th June 2020
About 2 months ago

The doubling of the rate is due to the fixed term ending not the loss of a job. Kin is not in a good position to remortgage due to the loss of a job. I have just remortgaged with Precise from Precise at great expense as they charge a fee. I would suggest you shop around - ask a broker, there are non-status mortgages around. It will be easier if you have less than 10 mortgages in total and if you have less than 5 with Lloyds group then BM Solutions are a good deal at present, but there are others. You will need a broker to access the market as some of the lenders only act with intermediaries. It is worth it as they don't generally charge until they apply for a product you will qualify for and they do all the research. Sounds like you haven't done this?

paul holden

10:22 AM, 15th June 2020
About 2 months ago

I used Precise for a re mortgage on an existing mortgaged and fully let property. The whole process was expensive, tiresome and delayed because of their incompetence in insisting on Welsh rental confirmation, even though the property is in England. They blamed the broker for the delays even though he was efficient. They insisted on a survey and it ended up costing more in the long run than if I had just transferred on to the new rate with the exiting provider.


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