Some People will have their Mortgages paid by their Bank!
10 January 2009, 01:28 PM
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Some People will have their Mortgages paid by their Bank!
Financial experts said some borrowers with tracker mortgages could see their rates drop to zero, meaning those with interest-only mortgages would have nothing to pay on their monthly mortgage repayments.
Lawyers suggested that if rates dropped further, borrowers could end up having their mortgage paid for them by their bank.
The majority of borrowers with a tracker deal pay the bank rate, plus a percentage on top. But some deals available just over a year ago allowed borrowers to pay the bank rate minus a percentage.
Ray Boulger, of mortgage brokers John Charcol, said: "The Financial Services Authority has made it clear that lenders must honour the terms of the mortgage contract. Unless borrowers were told before that they signed up to the mortgage that they would not receive negative interest, lenders will have to cough up."
We live in strange times indeed!!
Source:- Bank of England interest rate cut: Era of interest-free mortgages looms, experts predict - Telegraph
Lawyers suggested that if rates dropped further, borrowers could end up having their mortgage paid for them by their bank.
The majority of borrowers with a tracker deal pay the bank rate, plus a percentage on top. But some deals available just over a year ago allowed borrowers to pay the bank rate minus a percentage.
Ray Boulger, of mortgage brokers John Charcol, said: "The Financial Services Authority has made it clear that lenders must honour the terms of the mortgage contract. Unless borrowers were told before that they signed up to the mortgage that they would not receive negative interest, lenders will have to cough up."
We live in strange times indeed!!
Source:- Bank of England interest rate cut: Era of interest-free mortgages looms, experts predict - Telegraph
Savers are being hacked to death
10 January 2009, 01:45 PM
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10 January 2009, 02:02 PM
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Yep, its annoying, all the blinging going on over the last few years, people spending beyond their means to look good, we are prudent and then get fooked anyway so we may as well have p1ssed it up the wall anyway, savings rates are crap, shares and ISA's are on their ****, not going to do it again, going to spend more.
10 January 2009, 02:33 PM
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This will be the Labour legacy,as it always has been, anybody whose got anything in the bank should be penalised in order to prop up the ner do wells/stupid/thiefs in society - its just that this lot have gone one step further 
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10 January 2009, 02:38 PM
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Yep, its annoying, all the blinging going on over the last few years, people spending beyond their means to look good, we are prudent and then get fooked anyway so we may as well have p1ssed it up the wall anyway, savings rates are crap, shares and ISA's are on their ****, not going to do it again, going to spend more.
I was taught that saving was a good thing. What changed
10 January 2009, 03:36 PM
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Not that long now....
10 January 2009, 04:13 PM
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10 January 2009, 04:47 PM
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It would cost more to check every single benefit payment than is saved by doing so ...... therefore some do really well out of it.
I'm sure every single government in history has looked at saving costs and drumming out fraud ...... it's pretty much impossible.
10 January 2009, 07:28 PM
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10 January 2009, 11:32 PM
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I really wish I had a big mortgage to clear ...... having cash is a pain in the rear end - nearly lost a chunk in Iceland, and now looking at a pathetic return
10 January 2009, 11:46 PM
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11 January 2009, 12:01 AM
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11 January 2009, 01:39 AM
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Quick Q,
if you have a repayment mortgage at 5.6%
does the drop in interest rate mean that your overpaying the interest portion?
If so, will this early repayment of interest portion , then have a knock on
effect, that your term is shortened?
mart
if you have a repayment mortgage at 5.6%
does the drop in interest rate mean that your overpaying the interest portion?
If so, will this early repayment of interest portion , then have a knock on
effect, that your term is shortened?
mart
11 January 2009, 02:36 AM
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My tracker was 0.95 above the base rate for 2 years, then it dropped to 0.75 above for 2 years, and then it drops to 0.65 above for 2 years. This is with the Halifax who are not implementing any collars, so I have 3 years at these rates still to run, before it will go up. I liked the idea of a mortgage where the interest rate got better the longer you have it. 
Someone I work with has one of the trackers that is 0.25 below the base rate, be interesting to see if the bank start paying his mortgage for him.
Strange times indeed, my Council tax will now be about £40 more than my mortgage each month. Remember when everyone dreamed of paying off their mortgage and being well off?
Someone I work with has one of the trackers that is 0.25 below the base rate, be interesting to see if the bank start paying his mortgage for him.
Strange times indeed, my Council tax will now be about £40 more than my mortgage each month. Remember when everyone dreamed of paying off their mortgage and being well off?
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