mortgage rates -anyone else had a big shock?

I went to CAM today to pay some money in and made a general enquiry about my mortgage.  I was informed from 30th july my rate is doubling.  This was the first I knew.

I am being sent to MAr Menor to see if I can remortgage but have been told this istreated as a brand new mortgage.  this could be a problem as we purchased in 2008 so the value has dropped considerably. 

I think its really unfair we dont get any prior notice of the rate changes - all CAM said was it was in the original paperwork. 

Anyone else had anything similar happen and can offer any guidance?

hi igardner did you take a builders mortgage i cant understand why the rate is doubling..even worse when they dont cont u to let u know...cheers stevie 

Hi,

I was a mortgage adviser for 15 years and I also have a CAM bank mortgage which I took out in June 2008. My mortgage is reviewed annually each December and is 1.1% over the 3 month Euribor rate. I checked the paperwork before I signed and wouldnt imagine they can change this.

I was expecting my mortgage rate to drop to around 2.7% this December.

When you say your rate is doubling, do you mean your payment? My mortgage was on an interest only basis for the first 2 years, then reverted to a repayment mortgage for the remainder of the term. Could your increase not be due to the switch from Interest Only to Repayment?  This kind of switch while rates are so low, could double your payments.

If you are online with CAM you can see your monthly repayment chart for the life of your mortgage (obviously based on the current interest rate you are being charged).

We took the builder's mortgage which was 5 years interest only then onto repayment so our repayments will increase significantly from Sept 2013.

MG

check your original mortgage offer and quote. If they are anything like the ones in the Uk then it will be well documented in these papers.