Redstone Mortgages PLC are a known sub prime lender, they often lend money to people with poor credit ratings, they are typically known as sub prime lenders.
In the current economic climate taking out a mortgage with a sub prime lender will be seen as madness by some. Others understand the need to enter the property market and get a foot on the ladder, but at what cost.
Whilst renting can be seen as dead money taking out loans with lenders who charge high interest rates is a risky move. With the interest rate rises of late 2007 many mortgage companies increased their rates to follow, some companies increased the rates higher than the Bank of England. As the BOE cut the rates the mortgages companies did not follow, many people were left facing hikes in their monthly repayments, home owners that had stretched their budgets to the limit are now finding life difficult, subsequently many homes are being repossessed. Companies such as Redstone Mortgages are far less forgiving when homeowners default on mortgages.
Before taking out a mortgage with any lender the best piece of advice i recommend is not to extend yourself, if you’re are currently renting a property sit it out, i think things will get worse before they get better.
The above text is not professional advice , just my take on the current housing situation.
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I must correct your first sentence. Redstone are NOT a lender. I am unfortunate enough to have a “mortgage” with Redstone. The actual “lender” (originator) was Beacon Homeloans, who put up the money and immediately passed the mortgage on the day of completion to Redstone without informing me. Redstone are merely a shell company who hold the portfolios and collect the monthly repayments. This income is then passed on to their overseas investors. Redstone will not even try to help you if you fall into difficulties with your repayments, they are not set up to do so and will apply for repossession at the first sign of any problem. I would advise anyone to not even consider using this type of company. It is not worth it.
I am in a similar situation, my fixed rate is now due to end and they are charging me 9% which will put my monthly paymnt from £440 to £722. They will not help me even though I have sent them my expenditure and income details
Sarah
I too fell into the trap of having a Morgage with Redstone. I was Originally offered a low rate mortgage from Beacon Homeloans and the debt was passed to Redstone. ARE THEY ALLOWD TO DO THAT? sounds a bit fishy to me! I havent had any problems so far but after googling them a few times I found some bad stories about people who have borrowed from them before.
I guess I’m gonna have to hope I never get myself into difficulties and re-mortgage at the end of the two year fixed rate deal with another company!! EEEEK!!
I recently transferred my mortgage to Beacon Homeloans…then suddenly it was with Redstone Mortgages without any notification (as per Donna G’s comment above). In June 2008 I received a letter from Redstone saying that they had miscalculated their interest payments and it would change after the fixed term expires. No figures supplied. I e-mailed asking for written details. 4 weeks later no response from their Director of Mortgage Administration – Arlene Rutter. Unable to get answers via their telephone number either (a call centre in Northern Ireland). I will be pursuing this…
Thanks for the link! If you’re interested in interest rates, you may also want to check out my Inflation article, which you can find here: http://www.btgnow.net/2008/07/inflation-silent-but-deadly-part-1-inflation-and-the-cpi/
=Shudder= Whole lot of scary stories here in the comments! Good luck to you all!
You’re absolutely right that consumers should never extend themselves, but this can be problematic on their end: how should they know how much house they can afford? One of the problems with the whole sub-prime crisis was the predatory lenders bending the rules and using some very creative methods to show people that yes, you can in fact afford that 300k house working for minimum wage here’s the math.
Common sense can only go so far for the consumer, at some point we have to make sure the experts we work with are trustworthy, credible, and regulated (ohhh I went there!).
The last thing i will comment on is the “need” to get a foot on the ladder. It’s a bitter pill to swallow, but I hope that the sub-prime crisis reinforces one thing: owning property is not a right. everyone has a right to a place to live, but some people may never be able to own their place of dwelling outright. It’s not fun to tell people this, but I think it’s something we have to take a serious looks at: either we’re serious as a society about helping the poor own their own homes safely, or we’re not. We’re uncomfortably in the latter situation, but hopefully soon we can move to the former.
Redstone are indeed an SPV set up only to collect (administer only) the mortgage which is now wrapped (locked) up on a portfolio or mortgages, rated by S & P (the credit crunch starts as house prices devalue).
Beacon sold on your mortgage as you signed to allow them to do so….see the transfer or sell clause…. this only occurs in sub prime loans allowed by HM Treasury/FSA/CML.
FSA rules allow them to sell on your mortgage.
Beacon are one of many ‘lenders’ out there but in fact they are ‘orginators’ only with the full aim of selling on or meeting investors portfilio needs.
HML in Skiptom administer the loans but are a debt collection only entity as the mortgage cannot be changed, amended or modified or unbundled from the portfolio and so therefore do not employ mortgage advisors which are required to make any new deal or allow arrears of any kind.
They all play a lip service in this new tier of mortgage market placed upon us to give us all the impression (via letter heads etc) that they are traditional mortgage lenders, such as you have in the high street market.
This means that Gordon Brown as Chancellor knew about this new mortgage market and the Treaury/FSA permited its clandestine approach to selling. Through the Freedom of Information Act we secured information on all commercial entities involved in the formation of the FSA for securitised mortgages and in these documents in fully stated that they convinced the Treasury NOT to tell the public about the sub prime financial instrument.
All major banks were allowed to invest and set up SPV’s (Special Purpose Vehicle) to hold these mortgages off-balance sheet so that their savers would never know where their monies were being invested in.
Repossession being the last resort therefore is not true or can be complied with as it goes agaisnt the investors interests and as others in the portfolio default on thier mortgages the portfolio value goes down.
It makes a mockery of the above and where politicians today advise borrowers to seek advice from lenders when facing any possible repayment difficulties does not work in these markets and the contrary, it alerts them to take legal recourse only.
They will repossess on arrears even though you have restarted payments and the courts cannot do anything about it.
CAB, Shelter and others are all unaware of how this market works and everything relies heavily on the ignorance of borrowers, legal and charities.
They have distorted the term ‘lender’ and very few knew this and before the credit crunch terms such as sub prime were relatively unknown.
Gordon Brown boasted in parliament how his party has enabled 2.5m more people to own their homes but not today.
It is not just to the adverse (which was the orginal intention) that these so called lenders provided mortgages to but also to the prime borrowers as banks restricted their credit more strictly to people to push them into this market where their earnings were greater as competition on the High St didnt allow for acceptable margins. They knew they could pick up these mortgages by the back door without any reputational hit and off-balance sheet too!!
Make no mistake….labour allowed these predatory lenders into the UK market and turned a blind eye to thier activities.
As long as there was equity in the property they would sell a subprime loan and it is a debt only not a mortgage.
Keep away from Redstone. they have repossessed me once and are trying again.
They have ruined my life completely and are trying again.
I dont know where to turn I am a single mother of two and they prey on the vulnerable.
they are seeking a repossession once they have heard I am trying to refinance elsewhere.
No matter what Keep away fro Redstone Mortgages. I will be contacting the FSA as soon as possible.
I to have a mortgage with Redstone and am in a similar situation. My partner and I agreed a mortgage with Beacon in 2006 which on the day of completion was sold on to Redstone. Since then they have started repossesion proceedings on us 4 times and are in the process of taking us to court again (hearing is 24th Nov). During these long 2 years we have had nothing but problems. Payments not being credited to our account, being charged for arrears we don’t have, being charged £100s for a debt councellor who never visited the list goes on. Redstone were fully aware that we had sold our house and were due to complete at the end of October. When questioned over why they had done this again they informed me that I had one month arrears and it was “their right” they then hung up on me. We have since paid the months arrears but unfortunatly our buyers pulled out so we are now chasing tails trying to find another £720 before Friday. We have submitted a complaint to the FSA so i guess it’s a case of trying to hang in there!
That all sounds a right nightmare, i was going to ask for a payment break in December but now i am not sure if i should or if they even do. Does anybody know!!
I was foudn a mortgage through my broker whom we had always been very satisfied with before. They said my mortgage was with Beacon Home Loans. Then, before you knew it, suddenly, they shoved it across to Redstone Mortgages whom no one had really heard of.
I had the circumstances of being made redundant in feb 08, fund a new job in aril o8 came to an end in mid may 08 9temporary work), found a new job june’8 and it ended through a bad boss – discrimination etc, in mid-july ’08. Found my current job in Sept’8 and going well so far!
Redstone were not very helful or compasionate. Still paying off one month’s payment and my regular current monthly payment.
Keep clear – not a nice company.
I remortgaged in oct 2006 to Beacon mortgage who then told me it was in fact redstone. I have just had my house repossessed by redstone when I was layed off in june this year.I have like the other people found them not helpful at all, and in fact the night before the final court hearing phoned me at 8:00 at night asking for a payment to clear the arrears, as soon as I informed them I was out of work I got nothing but hassle and telephone calls at all times of the day, please anyone who is considering taking out a mortgage with either Beacon or Redstone DON’T you will live to regret it, I know I have.They are what is wrong with the financial sector and should not be allowed over here in the U.K to peddle misery as they do.
o my gosh! i also signed up with beacon homeland and was surprised to get a letter from redstone saying they were responsible for my mortgage. so far so good but i have a 3 year interest fixed with them. i too got a letter in june 08 about the miscalculated interests. it says no need to do anything. i didnt pay it much attention but after all ive read here i am going to go and read it and make damn sure i dont miss a payment. they sound like a very horrible company – recommended by a ‘nice” mortgage advisor!
We are on a Payplan DMP and wanted to remortgage to clear the debt and get on with our lives.
The only broker who said he could help (CCJ 18month ago) has recommended a Beacon (Redstone PLC) product.
we are all due to go through with this when we started to see the various stories about Redstone. Now we are very worried.
cjm
i am unable to keep up payments on my loan with redstone as my income is less than the monthly payment
I had my mortgage with Beacon/Redstone cleared in April 09 and things are going well so far. I was in desperate need to sort out my finances and without the completion, I would be struggling so much right now. I hope I dont encounter some of issues some of you above have mentioned but so far Beacon/Redstone have proved good. I wouldnt recommend anyone to miss a payment with ANY mortgage company but do plan to look around in 2 years time.
I have just started renting a flat from a person who has a 100%mortgage with redstone mortgages plc.
I was doing a check on the landlord to how safe I was with them and discovered this site.
I just wonder how worried I should be.
We too were duped into the Redstone company by taking out a mortgage with Beacon Homes. Each year we receive a letter stating that Redstone have taken out Buildings insurance on our behalf as we do not appear to have any insurance and have taken the payments out of our bank account- each year despite sending them copies of our Buildings Insurance and even getting the Insurers to fax info directly to them I have to battle to reclaim the money they steal from our bank account.I think I have now defeated them after making it clear it is illegal to have 2 lots of Building Insurance on a property and that there practices are clearly of an illegal nature as well as unduly harrassing us every 12 months. We found out early last year that this is not a company to deal with as we had never had any CCJ’s or bad debt but we were not aware of this at the time. Unfortunately for us I have just had 12 months sickness including surgery and my husband is self employed. I am hoping to return to work in the next 3 weeks but my husband is having surgery on his shoulder and we have just found out the insurance he has will not be paying out for his hospital stay or income protection we were DUPED (yet again) into believing we would qualify for. So dont reckon there is much hope in Redstone allowing us a mortgage payment holiday for the next few months -However I will be contacting some professionals for advice since the government introduced the scheme last year! Wish us luck and good luck to all other victims of this Regime called Redstone, ACTUALLY DOES THIS NOT COME UNDER MIS-SELLING IF BEACON HOMES PASS US STRAIGHT ONTO REDSTONE WITHOUT OUR KNOWLEDGE???
My property was repossessed by Redstone In Aug 09 & like many of you we took our mortgage with Beacon homeloans then out of the Blue were informed that Redstone would be our Lender,Unfortunately there was no help from Redstone,we paid a fee to have our mortgage Changed from Repayment to interest only which was never applied,when my husband left i kept them fully informed by written correspondence,Telephone calls etc,when i did make offer of token payments whilst i was sorting out my finances it was declined without any consideration whatsoever,In one telephone call to them i explained my circumstances once more & the guy asked me “well how much can you pay today?”,”£1,000? £500? £100?,”,i stupidly made a £100 payment,why i dont know i guess i was scared,This has never shown up on the account,just the same as the £75 arrangement fee for changing from repayment to interest only,i only wished i had the strength to fight it all,But losing my marriage,mine & my childrens home of 21 yrs,i just gave in,It has since been suggested to me that there is noone in a position/knowledge that knows how to deal with the more complex situation within that company,They are Basically money collectors & That is that.
i have a mortgage with redstone which again was with beacon and handed over to redstone. We have had this mortgage almost 3 years and they charged us over 1000 pounds to arrange it. We have never missed a payment. In the 1st year we weren’t sent a mortgage statement and i never chased this up, then this year we recieved one stating if we were to ever redeem the mortgage they would charge us an addtional 4000 pounds which i don’t remember seeing anywhere in my mortgage offer. I too arranged this mortgage with a reputable broker and it was the only option we had at the time. We are now thinking ahead and have our debts paid off minus the mortgage and actually thinking of moving in the next year or so, hopefully we can get a mortgage with a high st lender but will have to pay this extortionate fee when we redeem even though we are paying over the odds in interest already. I’m really not happy about my mortgage broker and thinking of complaing to the financial ombudsman
How do I begin. I was sold to Redstone but to be honest they have worked really well with me. I am sometimes in trouble and they always are very understanding. Joined them in 2007.
Right now things are actually not good and they’ve been very understanding and sympathise with me.
They are okay and thats why am still with them since my fixed term expired.
Just in case anybody has any doubts about Redstone after reading all these warnings and complaints, all I can say is that we unfortunately got a mortgage with Redstone (was originally Beacon) and because we have to sell out house (down-turn etc.)and it will happen a few months before the ’2-year cut-off’ we now have to pay these people over £17,000 (yes, £17,000) ‘penalty charge’ PLUS the £5,000 they charged to arrange it in the first place. WE have contested through letters to the company but they are standing firm and have expressed absolutely no understanding for our situation. At the bottom of the letter it says if we are still not happy (you can say that again..) we can write to the FSA. Does anyone know if there is even the slightest chance we could get this horrendous and ridiculous sum reduced? Has anyone actually taken their case to the FSA and won? Any advice much appreciated!
I am a Redstone customer also, I think you will find that Redstone tookover Beacon and bought their portfolio, but so far so good for us, Redstone are like any other mortage provider, with the added emphasis on lending to people with pooor credit ratings, this is why i think there so hot on actions of taking peoples homes. How ever I do empthasise with people in tricky situations and I know like many of you it is a struggle, all i can say at the first hint of a finacial problem seek advice asap, DO NOT LEAVE IT TIL LATER. as later is often too late
I too took out a mortgage with Beacon, next thing i know it had been sold on to redstone without my knowledge and boy did the interest rate shoot up. When i eventually managed to contact beaconj the woman i spoke to did not want to know and put the phone down on me. Since i have been with redstone all i have managed to do is get deeper in debt because of their “charges”.
the problems i have faced with redstone is i really think the staff dont know what thier doing i have spent the last two days sorting out my home insurance the company i have had insurance has sent the faxs telling redstone the policy is in place i think the total is 6 maybe 7 faxs and redstone deny any has been sent i was promised a phone call to let me know what was happning nothing happened i had to phone them yet again got told no nothing has come through to them i phoned the insurance company they even phoned redstone to say everything is in order but that was still not enough i phoned them back and after a very rude phone call was i told ohh yes the fax came through this morning so its ok now why or why cant they just have someone on board to deal with these problems maybe retrain staff on how to deal with customer problems instead of the customer sorting their jobs out for them
Hi, we’ve had mortgage with Redstone for 4 years now, we are out of the fixed term but for some reason cannot get another mortgage! We have had no problems with them at all and have took a couple of mortgage breaks over the years without any hassle.
Only problem is its not portable so are stuck where we live!