I have a friend who has a mortgage problem and would be grateful for any suggestions I can pass on to her.
She had a long period of unemployment and for a time her mortgage was part paid by benefits (sorry, can't remember what it is called but it is the mortgage help one that gets paid straight to the lender).
She has now been working for about a year and has paid the mortgage herself in full and on time each month. The fixed rate she was on expired some months ago and the lender have transferred her to the standard variable rate and refuse to give her a new fixed rate.
It is a substantial mortgage so the cost is crippling and she now doesn't make ends meet.
Each month she rings them and asks if she can have a new fixed rate and each month they say 'no', call back and ask again next month. She has written to them asking that they look at her situation and either change the rate or at least give her some idea what she needs to do to qualify for a lower rate. They have replied that they cannot reduce the rate now and the criteria they use are confidential so they cannot tell her what she needs to do.
They have said that she can contact their hardship department if she is having a problem paying but it is actually only their ridiculous high rate that is giving her a problem. If they put her on a fixed rate she would manage quite comfortably.
She doesn't have a big enough salary to qualify for a mortgage with a new lender so is stuck with them.
Apologies for the lengthy post... is there anything she can do? If they won't budge, is there some governing body or mortgage authority she can appeal to? I think they are being totally unreasonable in their treatment.
She had a long period of unemployment and for a time her mortgage was part paid by benefits (sorry, can't remember what it is called but it is the mortgage help one that gets paid straight to the lender).
She has now been working for about a year and has paid the mortgage herself in full and on time each month. The fixed rate she was on expired some months ago and the lender have transferred her to the standard variable rate and refuse to give her a new fixed rate.
It is a substantial mortgage so the cost is crippling and she now doesn't make ends meet.
Each month she rings them and asks if she can have a new fixed rate and each month they say 'no', call back and ask again next month. She has written to them asking that they look at her situation and either change the rate or at least give her some idea what she needs to do to qualify for a lower rate. They have replied that they cannot reduce the rate now and the criteria they use are confidential so they cannot tell her what she needs to do.
They have said that she can contact their hardship department if she is having a problem paying but it is actually only their ridiculous high rate that is giving her a problem. If they put her on a fixed rate she would manage quite comfortably.
She doesn't have a big enough salary to qualify for a mortgage with a new lender so is stuck with them.
Apologies for the lengthy post... is there anything she can do? If they won't budge, is there some governing body or mortgage authority she can appeal to? I think they are being totally unreasonable in their treatment.