West Brom BS – Stuck on their extortionate SVR?

by Keith Smith

11:52 AM, 13th January 2017
About 2 years ago

West Brom BS – Stuck on their extortionate SVR?

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West Brom BS – Stuck on their extortionate SVR?

Oh how I’m kicking myself !! A massive well done to Mark and the team for the victory. I only realised this whilst trying to find a solution to my problem.pain

The reason I’m kicking myself ? ……In 2011 I remortgaged with West Brom AWAY from my original fixed deal, which upon ending, would have tracked at +0.99% above base til end of term to a product that was cheaper for a fixed 2 yr period but then reverted to SVR !! AAAAARRRRGGGGHHH ! massive mistake.

The ONLY reason I did this was because I was assured that I would be able to take a new product after the fixed rate ended …………. The rest is History …..West Brom cease BTL and I get reverted to SVR of 6.75% and a hike of £400 pcm in interest payents…..YES , my own stupidity, but hindsight is a wonderful thing.

My gripe is BTL SVR is now 6.25% but residential SVR is 3.99% How can this be fair !!!!!!!?

I am now having to face repossession rather than losses of £3k per year after ground rent and service charges on top. West Brom have offered NO HELP at all. Can’t move mortgage or sell due to negative Equity.

Lease option sale a possibility ?

Any advice welcomed and thank you.

Kieth



Comments

Neil Patterson

11:56 AM, 13th January 2017
About 2 years ago

ARGH I feel your pain too Keith.

This is very bad luck sorry.

The only thing that pops into my head at the moment as a way forward or at least action is to make an official complaint to West Brom and ask for a copy of their complaints procedure.

They normally get two goes at responding to you and then you can take it to the Financial Ombudsman.

Before everyone says they were no help to us which was correct they may now be feeling embarrassed possibly ??? This may be straw clutching but at least you are being proactive.

Neil Patterson

11:57 AM, 13th January 2017
About 2 years ago

If you can't decrease your costs could you increase your income?

Is it a large enough home to convert into an HMO ?

Keith Smith

12:59 PM, 13th January 2017
About 2 years ago

Reply to the comment left by "Neil Patterson" at "13/01/2017 - 11:56":

Thanks Neil, its worth a shot.....last chance saloon really !

Keith Smith

13:00 PM, 13th January 2017
About 2 years ago

Reply to the comment left by "Neil Patterson" at "13/01/2017 - 11:56":

Thanks Neil, its worth a shot.....last chance saloon really !

Keith Smith

13:07 PM, 13th January 2017
About 2 years ago

Reply to the comment left by "Neil Patterson" at "13/01/2017 - 11:57":

Wish it was Neil , but no a 2 bed flat. Even 2+2 would struggle to do it with local rates being low. It's too far from the city for Serviced accommodation too , and to be honest the whole block , I believe, was on the WBBS mortgage train when bought , so a lot are now repo'd and the building and its tenant's are not desirable !! Have looked at all options really ......................... Lesson learned though, so not all bad !!

Gary Dully

16:58 PM, 13th January 2017
About 2 years ago

Are you sure it can't be converted into Serviced Accommodation?

And hired out through AirBnb, to increase your revenue?

You have not given any property values, or postcode so we can't really give any examples.

This route requires a planning change of use, but it's still one avenue to consider.

What about a portfolio mortgage if you have other properties in equity, can they cover it?

Get in touch with a decent mortgage broker and see if they can help.

Keith Smith

17:05 PM, 13th January 2017
About 2 years ago

Reply to the comment left by "Gary Dully" at "13/01/2017 - 16:58":

Thanks Gary, but I've already explored this and the location / building would be very limiting as to potential users . Its in Tipton, West Mids . I've just started on this route with a couple of others I own though !

Thanks for your input, its very much appreciated .

H B

19:38 PM, 13th January 2017
About 2 years ago

Keith,

There is surely no reason to face repossession if you have a couple of other properties. Can't you use the surplus income from the others to pay the short fall?

Keith Smith

21:22 PM, 13th January 2017
About 2 years ago

Reply to the comment left by "H B" at "13/01/2017 - 19:38":

I have no desire to throw in the towel but with service charges and ground rents , this property is £3k in the red each year ! I will certainly explore every other option , but with other personal circumstances unexpectedly changing , it leaves a very different perspective to the ownership of it .
I have made a complaint to West Brom so lets see what happens .

H B

9:27 AM, 14th January 2017
About 2 years ago

Reply to the comment left by "Keith Smith" at "13/01/2017 - 21:22":

I really cannot see what good a complaint will have unless they have breached T&Cs - the Financial Ombudsman is unlikely to take much interest either. But you rightly do not have much hope.

Then you need to consider plan B. If they repossess and sell at auction at a discount, there could be quite a shortfall. The lender will then be entitled to pursue you and any other assets and your credit rating will be shot to pieces.

Simply put, if you are not going to cover the rental shortfall, you need to sell up ASAP - don't be repossessed. If you cannot cover the full amount of the mortgage, see what other assets you have to sell.

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