Mortgage Prisoners - Let Battle Commence!

The banks were saying "You can't afford to pay less"!!!

THIS WAS WRITTEN 31 JULY 2018, before Panorama exposed the Cerburus scandal - but ANYONE who feels they were unfairly put on SVR and denied a better rate should put pressure on the banks and regulators.

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So, after dragging their heels for years, with the FCA (the cornerstone of 'Fairness' purportedly) having proved themselves utterly toothless, the banks are finally going to be writing to mortgage borrowers stuck on high interest rates (typically SVR) before the end of the year to offer them a better deal ... still in no hurry, then ...
 
I've previously blogged here (with links to earlier posts) about their appalling exploitation of borrowers who were already struggling and more recently I've contributed to the Facebook group 'Mortgage Prisoners UK' - people trapped in unfair deals for any number of reasons.

There are all sorts of excuses the banks have used to try to justify applying higher rates but, given that FCA was usually way behind the ball or at best woolly in its guidance, they got away with it by hiding behind the biggest smokescreen of all - that they couldn't disclose the reasons for their lending decisions because they were "commercially sensitive" - which gave borrowers seeking to complain to the Ombudsman (FOS) no grounds to contest. In the meantime they continued to conveniently misinterpret, ignore or straight out disregard the spirit of the guidance provided and the plight of those they knew they had over a barrel.

Well at last, and largely due to Money Saving Expert's relentless efforts to raise the profile of this issue, we have some sort of tenet admission by the industry that things need to change, but the battle's not even half won. Many of those in the Facebook group - possibly the majority - had their Northern Rock loans taken over by the likes of Landmark / Whistletree, who are likely to slip through the net again because they were companies formed specifically to take over NRAM's loan book, are unregulated and failed to offer new products.  Can you imagine having been a Northern Rock borrower and having the decision about who your new provider would be taken away from you, therefore leaving you exposed to being held to ransom?

And that's still not where it ends - people were put on SVR for many other reasons, including arrears resulting from a change in income.  Suddenly they were a higher risk, so they were put on a higher rate at the next anniversary of their loan - despite the guidance saying that affordability checks shouldn't be applied to existing loans.  And, when they were back in the black, banks like Santander KEPT them on the higher rate for an additional year, to prove they could afford to go back to a lower one!

This is in my view the biggest scandal since PPI mis-selling ... and it's gonna run and run a while yet because nothing has been done to address retrospective complaints made to FOS, who are refusing to re-open those cases because they were ruled on at the time.  Well, if PPI claims could be backdated, and we're receiving clear signals from this most recent announcement that the banks are trying to address their impropriety, affected borrowers should be reimbursed for the difference between what they were asked to pay and any cheaper options that should have been made available to them at the time.

I urge any mortgage prisoners to make as much noise as you can to be compensated for the financial and emotional stress you've been subjected to as a result of this issue.

Thanks also to news organisations who have picked up on this - several of whom who have representatives posting on the Facebook page seeking personal stories to feature in articles. Get yours heard!

Please feel free to comment below - comments are moderated prior to being posted.

The War on Diesel

We own a diesel car - we were encouraged to do so by Government-sponsored incentives like road tax concessions and cheaper fuel at the time, along with being rewarded by the warm fuzzy glow we felt for doing our bit to achieve the lower carbon emission levels Gordon Brown was so keen to meet at the time.

I'm sure a few politicians might also have benefited from being given the nod in their gentleman's club to invest in this sector of the motoring industry before these measures came into force.

Then we started hearing about 'particulates' and 'nitrogen oxides' and now we're being treated like the lepers of the road, with Sadiq Khan (London's Mayor) seeking to penalise us further by extending the Ultra Low Emmission zone (ULEZ) to the North and South Circular (A205) roads - in my view, a completely unworkable scheme that would see me paying over £10 just to drive the mile or so from my home in Putney to Putney High Street, which is just the other side of the A205 but in the same borough.

So now we have a perfectly functional, low mileage and fuel-efficient vehicle (we still burn way less fossil fuel than petrol*) that is being rendered worthless - with no apology or compensation from the Government for their reckless misguidance.
 * maybe that's the problem for the Government - declining tax revenue from volume vs petrol

So, where do we head from here? Back to petrol, and the original issues with emissions, or maybe line a few more pockets of the Old Boy Network now promoting electric? Which brings me to these:

A visual pollutant hitting our streets in droves, I hate them. They have "Folly" written all over them. However, as they profess to deliver 100% renewable energy, I don't loathe them quite as much as the concept of charging your car from your home electricity supply - I simply don't understand how it makes it OK to increase our reliance on fossil fuels - which apparently were dwindling long before this fiasco - simply by burning them before delivering the resultant power to your car by way of a cable in place of the liquid form you used to store in your tank.

And, lastly, I despair at the environmental damage of seeing our car consigned to the scrap heap before its anticipated lifespan. I see enough still useful but outdated consumer products being chucked into skips and municipal dumps, with no thought of who they might be useful to (the poor? charities?), without seeing whole vehicles taking up landfill.