mortgage arrears charges

[Gozo]

Hi.

I seem to be having trouble with the above company with regard to interest rate,

increasing monthly payments and charging £50 per month for being in arrears without an agreement.

 

Is there anyone who has had or still has a loan from kensington secured on there house.

If so can anyone tell me what the svr was on their loan in March of this year.

Also does anyone know whether one can obtain a written statement of kensingtons svr for the last 5 years?

 

Has anyone had their mortgage payment increased even though there was no increase in the interest rate?

 

Has anyone successfully reclaimed the £50 charges and if so how does one go about it.

 

I know this is rather a lot of questions but it would appear that second mortgages are not covered by the FSA and therefore help from them seems not to be forthcoming.

 

many thanks

[IainHL]

Hello Stugoz,

 

My partner has a secured loan/second mortgage with Kensington.

The interest on her loan is set as LIBOR plus so many percent (I cannot remember exactly how many and don't have the paperwork with me to check),

and this is reviewed quarterly.

Thus her loan repayment did increase earlier this year because LIBOR had gone up.

I presume your assertion that "there was no increase in the interest rate" is based on the BoE Base Rate?

 

We did claim back all their unfair fees/charges a couple of years ago (£25 returned direct debit, the £50 ones you are talking about for just being in arrears,

and a counsellor visit fee for a visit that never took place).

 

 

We cited the FSA ruling in our letters to them and they responded with how this only applied to first mortgages and not secured loans.

 

 

However we persisted, and eventually issued a court claim.

 

 

And at that point I'll stop saying anything further, imply what you will from that!

[Gozo]

Dear IanHL

Many thanks for your message. With regard to the interest rate. I have been in correspondence with Kensington who told me that they had made a mistake when quoting my interest rate. I need to find out what their SVR was in March of this year. If you could look at your partners paper work and find out what they were paying it would be a great help to me.

 

I have also found out they are using 1 year LIBOR rate when in actual fact my contract says they should be using 3 month LIBOR which is considerably less. This may be of interest to your partner.

[IainHL]

Hello Stugoz.

 

This gets complicated!

 

The agreement states that the interest rate is the variable rate plus a fixed margin of 7.50%. It also states that they may change the variable rate at their absolute discretion whenever they want as long as the variable rate is never more than 2% more than the LIBOR rate. It defines LIBOR rate as the variable rate of interest equal to LIBOR fixed not less often than quarterly. LIBOR is itself defined as the rate at which sterling deposits are offered for a 3 month period.

 

The notes to the quarterly mortgage statement from February 2008 infer that (being a Money Partners arranged loan) that the interest is LIBOR plus the margin.

 

The actual rate she was paying was 10.20% up till 29/02/2012 and 10.25% from 01/03/2012.

 

Are you able to point me to somewhere where I can see the historic LIBOR rates please? What you say about them using a 1 year rate rather than 3 months is very interesting.

[Gozo]

Dear Iain

I quite agree this is a complicated subject but certainly worth pursuing. I feel that a chat on the phone would be very beneficial to us both. If you agree I will give you my email address. We can put are finds up on the group once we have established anything.

regards

Stugoz

[ims21]

Please note that the posting of personal e-mail addresses will contravene site rules.

 

It should also be noted that contact by telephone is not something CAG would advocate as being a good idea for reasons that should be obvious.

 

CAG is here as a platform for people to discuss matters in the open so that all interested parties can follow the discussion and take any useful information from it.

 

Please refrain from suggesting making contact by phone and the posting of personal e-mail addresses

 

Thank you

[Gozo]

Thank you, most succinctly put. As a new person to this site I would have thought a more tolerant view to my obvious mistake would have been appropriate. But Hey Ho! there is obviously some extremely health and saftey conscious people on this site as well as the people we are supposed to be fighting.

I would mention here that apparantly one is allowed to send a private message to a fellow cagger but only if one has 30 threads to ones name. Hmmm! Hopefully this will count as one.

 

May be you know how the interest rate for a Kensington second mortgage works.

[Gozo]

Can anyone tell me whether it is possible to claim back arrears charges. I have a second mortgage with Kensington and they have been charging £50 per month arrears charges.

I have tried the office of fair trading but they are no longer in existance, so I tried the Financial Conduct Authority who didn't have a clue. So any help woul be most appreciated.

[Gozo]

Can anyone tell me if these are reclaimable. Since there is no office of fair trading anymore I am not sure who deals with what for consmer protection.

[dx100uk]

http://www.consumeractiongroup.co.uk/forum/showthread.php?296108-Hot-news-for-anyone-who-has-suffered-mortgage-arrears-charges-irresponsible-lending-or-other-unfair-lender-conduct

[Gozo]

Thank you for the link I am not sure how relevant it as as it is so old. Do you know the uptodate rules on this subject or where infact I can obtain them.

[dx100uk]

that is current

 

 

dx