Interest only mortgage term up, can the lender take you off your tracker?

[Brendan Burgess]

I was speaking to someone with a Bank of Scotland, interest-only, tracker mortgage whose term expired last year. He has not been in a position to clear it.

He says that Pepper are now charging him a variable rate.

As he was not sure of the rate he is actually being charged, I think he may be confused, but it raises an interesting question.

If someone does not clear their loan by the end of the term, can Pepper revise the basis of the interest rate?

Brendan

 

[TRS30]

I would say they need to check the original loan T&C's to see what it says. They should be something about what rate options should be available once the mortgage term is up. I guess if tracker is an option, then Pepper are obliged to offer same.

 

[johnsamir]

If a Bank of Scotland interest-only tracker mortgage term expires without repayment, Pepper, the loan servicer, might adjust the interest rate; however, the specifics depend on the original agreement and any subsequent arrangements made with Pepper. Clarifying the current terms with Pepper is recommended for the borrower

 

[Dublin Walker]

Had a similar mortgage and went to a higher rate which was very high. As I am older banks wouldn't refinance me, so was stuck and was just being advised to sell property. Chatted to broker and they advised me on Spry. Was able to refinance it, but you have to be over 60!

 

[Raging Bull]

Pepper can call in the loan, lucky they are even offering variable.

 

[Brendan Burgess]

Had a similar mortgage and went to a higher rate which was very high.

Did you challenge it?

How did they justify the higher rate?

My friend would not be old enough and the mortgage is too big for Spry. He is going to sell the property, but it's taking time.

 

[Dublin Walker]

Did you challenge it?

How did they justify the higher rate?

My friend would not be old enough and the mortgage is too big for Spry. He is going to sell the property, but it's taking time.

To be honest no didn't challenge it, I had wanted to move away from Pepper for a while and this was just final reason to. flexible repayment options with Spry also suited me better.