Kafka v Derbyshire Home Loans

[Amethyst]

Re: Kafka v Derbyshire Home Loans

I would keep all communication in writing, and yes a complaint to FOS could be in the future depending on response or lack thereof.

The change in rate isn't a change in terms. The terms as I understand it are the rate after fixed term will be 2% above their current SVR. DHL have a higher SVR I suspect. But you should be entitled to details of how the rate of 10.1% has been reached, ie what their SVR is.

Tools has said there may be a 28 day notice period of rate changes. If this is the case then a complaint would be in order but we know it won't make much difference.

[Kafka]

Re: Kafka v Derbyshire Home Loans

Well as I don't know how they are justifying the rate they quote I have written to them demanding an explanation.

Having gone back to central Wales today I find another letter from them actually dated 2 weeks ago. In this one they say that in accordance with the T&Cs they write to advise me of an amendment to the interest rate. From 1st March it is now 9.21%, so they have shaved off nearly 1% from what they were trying on.

On a big mortgage this makes a lot of difference, but this is still more than 1% higher than the estimated figure in the agreement, based on the then SVR of the original company. I'll just have to wait till I hear from them and I gave them 14 days so I should know something before the end of the month.

:typing:

[Amethyst]

Re: Kafka v Derbyshire Home Loans

Well thats good news a bit at least. Does that make thinks any easier to manage in the interim ?

[argentarius]

Re: Kafka v Derbyshire Home Loans

Kafka

Thanks for pointing me to this thread from the other one regarding mortgage arrears.

I'd make just two points:

(1) You weren't switched lenders without your consent. Your original mortgage terms will have included a clause permitting Kensington to sell your loan on to another lender, and you consented to that when you accepted the original mortgage.

(2) You are for some reason surprised that your rate is more than you expected. But the SVR of your original lender, in 2006, was far lower than current prevailing SVRs. It's not that Derbyshire Home Loans are charging a particularly onerous SVR, it's just that rates have risen.

You say DHL are currently asking you for 9.21% from 1 March. Your original contract specified a rate of SVR+2.4%. So that implies that DHL are charging you SVR of 6.81%+2.4% = 9.21%.

6.81% is in fact an amazingly low SVR. Halifax SVR from 1 March was 7.25%, for example, and others were higher. I suspect that it's more likely that they've cut the margin.

When they were asking 10.1%, it would have implied an SVR of 7.7%. That wasn't too high at the time either - when Halifax would have been charging 7.50%.


So:

(1) there is no legal basis, IMHO, to resist the change of lenders, as it was a right they had under the original contract; and
(2) the rate they are charging is also in line with the original contract.

[optimus2008]

Re: Kafka v Derbyshire Home Loans

Hi Kafka,

I am too with DHL since my mortgage was sold to DHL last year a months after with KMC. After reading you posts above I am really worried about this adn I was wary of this too. Its states in my offer the 2 year fixed rate payments will be SVR +1.20% which will nearly make me bust. I am dreading that day.

I dont think there is much we can do. Apart from one thing I have picked up on the in my KMC mortgage offer it states the following

" We may sell or transfer our rights and obligations under your mortgage to anyone... blah blah..... If we do sell or transfer........blah blah save that reference to kensington SVR will be the interest rate dertimed from time to time of the transferee. "

I have makred in red the bits that are misleading. Firstly from my research the the sell all the mortgages therefore why use the word MAY (when they should use We Will at the start of the sentence). Secondly IF, (again the same issue using this word) They should of used We Will instead..... Then the rest save that reference..... (I dont understand what they mean exactly.


I would be gratful if you coul let me know how much u paying now and what the SVR if u know or anything i should know about. My fixed rates runs out in March 2010 and dreading that day when i comes.


I look forward to your repy
Optimus