High Variable rates, scandalous!

It is not a scandle. No one could forsee what the variable rates would be in a few years time at the point where you took out a fixed rate mortgage.

You are unlucky that due to the "financial crisis" the banks have to charge a high rate in order to recoup losses. Banks are a business, they are there to make money, not to subsidise borrowers.
 

Which lender are you with?
 
BOSI.

I think it's scandalous. When you take out a mortgage you have to take the good with the bad, so do the banks except it seems they can make up for their bad choices by charging the customer whatever they want. First time buyers with BOSI in serious negative equity will be hit hardest by this. They don't even have the option to switch lender to avail of a better rate.
 
I'm with Bank of Scotland myself on a fixed rate mortgage and while I have a bit to run on my fixed term, I have to say it is a bit of a worry. God only knows what would happen to their standard variable rate if the ECB were to increase interest rates. Being in negative equity, I have no choice but to grin and bear it. It is a scandal that they are permitted to charge almost sub prime rates to their Irish customers while their standard variable rate in the UK is 3.5%. There has been talk of BOS being involved in a merger to create a third major bank. The only hope is that this would have an effect on their interest rates.
 
Hi there,
I rang them this am, as I had this worry some time ago. You need to check your contract as you may not be going back to that rate once your fixed rate is over. We will be going back to their standard variable rate of 2.5% when we are finished our fixed rate.. which let me tell you does not end for another 9 months!!!!!!!!!
 
I must check but I don't recall there being a specific rate mentioned in my contract. I'm sure it just said that the rate would revert to the standard variable rate on expiry of the fixed term.
 
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