UB charging 5.4% on home loan. Can I do anything about it?

[rameire]

the rates for that system all seem to be active from the 1st of the month, so the 6.1% I would say was active from 1st October
the previous variable rate from May 08 was 5.79%.
6.1% was the highest the variable got during the boom in FA/UB.

 

[oleksiy]

based on the pic you have provided and the account being drawn in 2008, and the mortgage being sub account no 1, the mortgage number should start with 40******.

That's right - the account number starts with "40". The margin is not mentioned anywhere in the loan offer.

should they not have had the benefit of the dropping rate as it was a variable rate offer, this would have been the norm and the loan should have drawn down at the prevailing variable rate at date of drawdown. If rate had risen they would have been charged the new higher rate.

And the bank made us believe that this is what was going to happen. They sent us letter saying that rate shown on the offer document will decrease, which made perfect sense for us. But later they said the letter was sent by mistake. Why it was a mistake I cannot understand.

[broken link removed]

 

[M_Bea]

check the special conditions page of the loan offer to see if there is a margin shown there.

[broken link removed] Here is a Special Conditions page.
It doesn't mention a margin too.
The offer was issued on the 21st October'08 stating the interest rate of 6.25%, the margin of 1.15% would have made sense should the letter has been issued in December (December's svr of 5.1% + 1.15%).
The 6.25% is a confusing bit though, if the rate was 6.1% presumably the margin is 0.15% as Monbretia suggested? But why does the margin not being mentioned at all in the loan offer.

 

[M_Bea]

The image is not showing to me, but if you right click -> open in new tab it should work.

 

[M_Bea]

Would it make sense to file a complaint with UB now? As it seems it was the First Active who refused them with a variable rate in Dec'08.