Interest rate rise...

[saleen836]

I had a look but couldn't find a thread on this already running.
Yes I know it is the Daily Wail but...
http://www.dailymail.co.uk/news/article-2109335/Mo...

Is this the start that most/all the others will follow?
Or is it a smart move to get borrowers to move to a different product i.e fixed rate and for the lender to make money on the set-up fee?

[anonymous-user]

I read that they are raising standard variable rate as they are losing out on a lot of tracker customers (sorry I fixed at BOE + .5% 5 years ago!)

[egor110]

If you took out a mortgage which you can't actually afford then i can see there are people who are going to be worried.

We got our 1st house in the mid 90's and we were on 6% then, however we had a meeting very old school mortgage advisor who warned us not to borrow the max as if the rates went up by x or y % we'd then be paying a larger amount , we had a meeting with another who said because of my job/overtime he could adjust the paper work to get whatever house we wanted, we went with the old school and i don't regret it.

I think in fact i know people who live in houses far nicer/posher than people of there trades would of used to of lived, in the late 90's people who were quite happily living in terraced 2 up 2 down decided they were going to move up in the world and buy semis, detatched houses got mortgaged to the hilt and now it seems it may be coming along to bite them.

[Crafty_]

Jimboka said:

I read that they are raising standard variable rate as they are losing out on a lot of tracker customers (sorry I fixed at BOE + .5% 5 years ago!)

I'm +0.79%. Hoping that my lender won't follow the others.. trying to get rid of the flipping thing while its cheap.

[heppers75]

You know I feel like a proper smug son of a bh... I have a pretty small mortgage and I live in a niceish house.... Nothing spectacular and not in the "must be" area but nonetheless very nice, acre and a bit etc....

I COULD be living as some of our 'friends' are in £1m+ properties, I would however have the corresponding outgoing.... Right now and all things being equal I will be mortgage free and 40 in 3 years.....

I know what I would rather!

[anonymous-user]

Crafty_ said:

I'm +0.79%. Hoping that my lender won't follow the others.. trying to get rid of the flipping thing while its cheap.

They cant touch base rate tracker until its contracted term is up, mine is for the life if the mortgage..

[pilchardthecat]

anonymous said:

[redacted]

Really? They were all boe trackers when i was looking a few years back.
.

[Deva Link]

anonymous said:

[redacted]

There would be a lot of wailing and gnashing of teeth if the rates diverged. They really ought to have had periods of difference to get people used to the idea!

[Crafty_]

Yep, they can differ, all depends what your mortgage is based on. I need to pull my paperwork again and check.

As others have said it will be interesting to see what will happen to those who are already stretching themselves. A mate was somewhat bemused by a colleague who saw the rate drops a couple of years ago as "free" money (as he put it) that he could do and spend on gadgets/new car/whatever, that money has now been soaked up and spent, so when rates to rise again (even back to where they were) he'll struggle. I suspect this chap isn't alone.

[ALawson]

anonymous said:

[redacted]

I have a Barclays mortgage trackers at boe base rate +.27% and it is deffinately boe base rate.

[ALawson]

My IFA specified that it was and I remember double checking at the time. My mate at L&G economist chap checked it over at the same time. I will email IFA on monday know.

[HoHoHo]

My HSBC tracker is .29% above Bank of England base rate.

Edited to add having checked the agreement on my commercial mortgage with RBS that is also (1%) above Bank of England base rate.

Edited by HoHoHo on Sunday 4th March 10:11

[Marf]

ALawson said:

I have a Barclays mortgage trackers at boe base rate +.27% and it is deffinately boe base rate.

HoHoHo said:

My HSBC tracker is .29% above Bank of England base rate.

Blimey, I thought I had it good at 0.95% above base!

[HoHoHo]

Marf said:

HoHoHo said:

My HSBC tracker is .29% above Bank of England base rate.

Blimey, I thought I had it good at 0.95% above base!

When I changed to my current tracker in 2008 there were also no fees!

[Marf]

Well, I shouldn't complain too much, my mortgage is only £200 a month

[mercGLowner]

Mine is BoE base rate plus 1.03% for the life of the mortgage but it has a floor at 2%, so I pay 3.03%. At least it give me a 1.5% 'buffer' from future BoE rate rises!

[cymtriks]

At what point would customers have a case for claiming the rate is excessive?

With a base rate of 0.5 these deals are eight times base.
Back in the nineties banks used to claim that they needed circa 2-2.5 margin for profitability and that was before everything went to Indian call centres and the customers started doing everything on line.

Given the above you'd expect deals of circa 2.5-3.0
At 4.0 you'd be paying a third more than that again every month.

[HoHoHo]

But don't banks borrow based on Libor rather than BOE rates, therefore they're actually losing money on low deals and only just making money on higher rates (if making any at all)?

[Deva Link]

Marf said:

ALawson said:

I have a Barclays mortgage trackers at boe base rate +.27% and it is deffinately boe base rate.

HoHoHo said:

My HSBC tracker is .29% above Bank of England base rate.

Blimey, I thought I had it good at 0.95% above base!

A colleague of mine has +0.18% with Woolwich, and he was miffed as they were offering +0.09% and he just missed it.

There were some deals kicking around for a while that were under base rate.

[HoHoHo]

Deva Link said:

A colleague of mine has +0.18% with Woolwich, and he was miffed as they were offering +0.09% and he just missed it.

There were some deals kicking around for a while that were under base rate.

Yep, a pal of mine has .5% below base currently.