How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

I have a interest only mortgage and I pay £530.00 per month

Resolved Question:

I have a interest only mortgage and I pay £530.00 per month on a variable interest loan. My rental income is £423.00 per month. When interest rates go up I will not be able to subsidise the additional interest. Do I have any recourse. The lender has not reduced the interest rate while rate are low
Submitted: 2 years ago.
Category: Law
Expert:  Ash replied 2 years ago.
Hello my name is ***** ***** I will help you with this.
Do the terms say the interest rate is linked to anything?
Customer: replied 2 years ago.

The rate is variable. I think the loan was sold to another bank called Mars Group. It was originally with a Bank called Heritatable Bank that went into liquidation. I feel when interest rates start going up this bank can set whatever rate they choose and I have no come back.

Expert:  Ash replied 2 years ago.
It's bad news I am afraid. Unless the terms say it is linked or tracks the Bank of England base rate you have no recourse from what I can see. They are acting with their terms and conditions. Just because the Bank of England reduces their rate does not mean a lender has to,
But try complaining and see what they say, if that fails then you can try the ombudsman. They offer a free, independent service and can examine your complaint for free at www.financial-ombudsman.org.uk
I am sorry if this is not the answer you want and certainly not the one I want to give you, but I have a duty to be honest.
Can I clarify anything for you about this today please?
Alex
Ash and 2 other Law Specialists are ready to help you
Expert:  Ash replied 2 years ago.
Hi

I am just following up to see if there is anything else I can help with?

If this answers your question might I ask you to rate my answer before you go today please, the button should be at the bottom of the screen.

If you need more help please click reply.

Alex