And so the real pain starts - mortgage rates on the way up....
03 March 2012, 09:20 AM
#1
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And so the real pain starts - mortgage rates on the way up....
Ouch for some.
I'm on fixed rate for the next few years so can defer the pain....
All over BBC news, but **** all on the front page of the website....
I'm on fixed rate for the next few years so can defer the pain....
All over BBC news, but **** all on the front page of the website....
03 March 2012, 09:35 AM
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03 March 2012, 09:55 AM
#4
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Yes SVRs are going up. No its not the end of the world.
LIBOR rate went up through 2011 (the inter-bank lending rate) because none of the banks will admit how deep into the euro mess they are so they are afraid of each other when it comes to lending so of course the rate goes up as the risk of default goes up.
Not quite sure I believe its costing them too much to provide the interest rate returns on savings. At best you'll get say 3% on the high street unless locked in for X years and the amount of people who don't shop their cash ISAs around each year is probably higher than new accounts (Many cash ISAs drop after the first year to terribly low rates)
You would ask why stay on the banks SVR? Once you were getting to the end of your special rate then shop around for next deal. Its possible that special deals will be on the rise rates-wise but we'll have to see.
What I would have focused on rather than the rise in SVR (The scaremongering bit) is the banks squeezing out interest only mortgages.
Ours is .99% above base for life.
Last edited by EddScott; 03 March 2012 at 09:57 AM.
03 March 2012, 10:20 AM
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http://www.bbc.co.uk/news/business-17234257
Good job mine is guaranteed 1% above BoE base rate then.
Good job mine is guaranteed 1% above BoE base rate then.
03 March 2012, 10:36 AM
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http://www.bbc.co.uk/news/business-17234257
Good job mine is guaranteed 1% above BoE base rate then.
Good job mine is guaranteed 1% above BoE base rate then.
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03 March 2012, 10:58 AM
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03 March 2012, 11:42 AM
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No, but tbh the mortgage rates have been stupidly low for so long now that most people haven't built in any allowance for them rising at all.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
03 March 2012, 11:50 AM
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No, but tbh the mortgage rates have been stupidly low for so long now that most people haven't built in any allowance for them rising at all.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
03 March 2012, 12:48 PM
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Nobody will be getting my house - in the game of mortgage chicken, I (happily upon reflection) blinked first.I'm on a 4yr fixed rate that is higher than the SVR has been (and hopefully will be!)..... at the end of my Fixed, I'll just keep paying the same.....
Then when it all goes wrong for other people, I'll be there waiting to buy my next house.....
Mercenary? yes. But as a wise man once told me.....
"there's only one type of "ummmm"............ "**** ummmmm"....
03 March 2012, 12:48 PM
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No, but tbh the mortgage rates have been stupidly low for so long now that most people haven't built in any allowance for them rising at all.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
We had to bite the bullet and put up with it. As was said, we managed somehow to make allowances for it, as hard as it was to do.
Les
03 March 2012, 12:53 PM
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No, but tbh the mortgage rates have been stupidly low for so long now that most people haven't built in any allowance for them rising at all.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
In the 80s/early 90s the average mortgage rate was about 11% and in 1989/90 it was at 16%. When it started to drop after that (particulalrly when Labour came to power I might add) I just kept paying the same amount until it was gone.
http://www.moneyweek.com/investments...ry-chart-14664
03 March 2012, 12:57 PM
#18
Only affect those on Standard Variable who are with Halifax and RBS. Base rate remains the same and is not going up any time soon. You're likely to be paying over the odds anyway on a fixed rate. I'll stick with my life +2.00% tracker for now.
03 March 2012, 01:02 PM
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My house cost 27K in 1986, by 1989 it was 64K.... kind of puts your Labour led boom into perspective really doesn't it?
P.S. I would hardly call a continuous boom/bust cycle putting the house in order, Ken Clark did that 1993-97... Thatcher's chancellors were a f**king disgrace!
Last edited by f1_fan; 03 March 2012 at 01:06 PM.
03 March 2012, 01:08 PM
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03 March 2012, 03:28 PM
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Will affect me, but saying that they had been getting 3% over base rate for two years off me before paying me it all back after realising my contract stated "no more than 2% over base rate" (there was a thread on Here about it a while back). So technically I've had 4 months without paying my mortgage due to being oin credit. Usually I'd have kept on paying but the money has been spent on my son, various bits for the house and the Scoob - oops, countil estate Ferrari. And approx. £2,500 off the mortgage balance wiped off as a good will gesture.
Works out at 0.49% increase approx. £23.76 extra per month for me. I'm skint now but that's my own doing owning a Subaru, having a mortgage and a child as an apprentice.
I'll cope or simply do what all the sceffers do around here and go bankrupt, live in a countil property and take up smoking
And approx. £2,500 off the mortgage balance wiped off as a good will gesture.Works out at 0.49% increase approx. £23.76 extra per month for me. I'm skint now but that's my own doing owning a Subaru, having a mortgage and a child as an apprentice.
I'll cope or simply do what all the sceffers do around here and go bankrupt, live in a countil property and take up smoking
Last edited by chocolate_o_brian; 03 March 2012 at 03:29 PM.
03 March 2012, 04:20 PM
#23
Pain ?
Wasnt it fifteen percent in the eighties, its been artificially low for ages, that said I do sympathise with those with a mortgage with everything else going on at the moment like high fuel prices and bills.
There are a lot of people out there living on cheap interest only deals on mortgages and doing buy to lets and stuff, personally I would like to see things not go up that much but really the way it should work is that savers should get better interest on saving than borrowers do on borrowing, and savings should increase faster than inflation, there is no reward for saving now, your money devalues at about 2 percent a year as a reward for being prudent if sat in a bank.
Wasnt it fifteen percent in the eighties, its been artificially low for ages, that said I do sympathise with those with a mortgage with everything else going on at the moment like high fuel prices and bills.
There are a lot of people out there living on cheap interest only deals on mortgages and doing buy to lets and stuff, personally I would like to see things not go up that much but really the way it should work is that savers should get better interest on saving than borrowers do on borrowing, and savings should increase faster than inflation, there is no reward for saving now, your money devalues at about 2 percent a year as a reward for being prudent if sat in a bank.
03 March 2012, 04:37 PM
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My mortgage is an amazing boe rate + 0.5%. ING have been kick themselves for years I think and trying to get me off of that mortgage.
I remember the pain of 15% mortgages. My first proper girlfriend nearly lost her house because of it. Rate went from 10% or 11% to 15% and it was crippling for a very young person, first house etc...
I remember the pain of 15% mortgages. My first proper girlfriend nearly lost her house because of it. Rate went from 10% or 11% to 15% and it was crippling for a very young person, first house etc...
03 March 2012, 04:55 PM
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Back when mortgages were 15% etc, were house values still representative of the average wage as they are today? As in we're interest rates higher but house prices cheaper? We're you getting more bricks and mortar for your money but paying higher interest rates?
03 March 2012, 05:31 PM
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To give you an idea COB, rates went up to about 11 -15% (during the EMF crisis iirc?), I'd just bought my first house for £45k and I was earning £140 net per week ( partner at the time double that).
This was 1991.
The same house now is worth £140k.
This was 1991.
The same house now is worth £140k.