Bloo Loo

Svrs Up At 6 Banks At Least

51 posts in this topic

R4....SVRs are up today....due to Libor apparently...interviewer asked the man from the bank why they didnt try to attract savers....no answer.

possessions...banker...half the rate they were...interviewer...is this because of forbearance?....nah says the banker....it will be down to the regulator who may demand more capital.....

message from bankers:....let us continue our leverage or we will possess like billio.

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I know this subject has been covered before, but today is the day.

http://www.heraldscotland.com/mobile/news/home-news/household-debt-fears-as-mortgage-rates-rise.17456852?_=cd792dcdf21d1c0afb84ef101bfcde35f5f7d9fa

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[quote name='Bloo Loo' timestamp='1335859256' post='909026972']
I know this subject has been covered before, but today is the day.
[/quote]


Yes today is the day, and it is good to hear wide media coverage of it this morning.

With a housing market driven by sentiment, It can only help along the HPC when home owners are made aware that regardless of the B of E interest rate, mortgage rates can, and are, going up.

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http://www.dailymail.co.uk/news/article-2137741/One-million-homeowners-hit-mortgage-rate-rise-adding-hundreds-pounds-year-costs-loans.html

[quote]One million homeowners hit by £660 a year mortgage rate rise

BONG 850,000 Halifax borrowers will see mortgage repayments rise by up to £55 a month
BONG Others lenders set to follow suit in coming months
BONG Rises due to difficulties borrowing from European money markets caused by financial crisis
BONG Hike in interest rates expected to add £300m to UK mortgage repayments over course of 2012
BONG Council of Mortgage Lenders say repossessions set to rise by 22 per cent[/quote]

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[quote name='thecrashingisles' timestamp='1335860114' post='909026986']
http://www.dailymail.co.uk/news/article-2137741/One-million-homeowners-hit-mortgage-rate-rise-adding-hundreds-pounds-year-costs-loans.html

Quote
One million homeowners hit by £660 a year mortgage rate rise

BONG 850,000 Halifax borrowers will see mortgage repayments rise by up to £55 a month
BONG Others lenders set to follow suit in coming months
BONG Rises due to difficulties borrowing from European money markets caused by financial crisis
BONG Hike in interest rates expected to add £300m to UK mortgage repayments over course of 2012
BONG Council of Mortgage Lenders say repossessions set to rise by 22 per cent
[/quote]

And yet the recent survey from Nationwide (or was it Halifax?) told us that most home owners still believed house prices would go up. :unsure:

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[quote name='thecrashingisles' timestamp='1335860114' post='909026986']
[url="http://www.dailymail.co.uk/news/article-2137741/One-million-homeowners-hit-mortgage-rate-rise-adding-hundreds-pounds-year-costs-loans.html"]http://www.dailymail...osts-loans.html[/url]


[/quote]

R4 today programme had the CML man on saying 1m+ borrowers and the rest of the figures as above. Presenter remarked it was amazing how low reposession figures had been so far. Also chat about how this will reduce consumer spending.

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[quote name='moonriver' timestamp='1335860732' post='909026999']
And yet the recent survey from Nationwide (or was it Halifax?) told us that most home owners still believed house prices would go up. :unsure:
[/quote]

There are definitely some interesting survey results lately (not just that one) , there seems to be a portion of the population (not the city workers) that believe thingss will get better as they are doing fine, while they ignore how the majority are doing...

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A friend of mine who works in the city ( loves his debt and property) emailed all his friends 3 months ago to tell everyone what a great time it was to get an SVR mortgage as rates weren't going up any time soon.

Pure comedy gold.

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Still luckily everyone who's been on rock bottom rates in the past with their SVR have been repaidly paying down their debt haven't they? So this won't affect people too badly...

Disappointed in the Wail that it didn't say for IO mortgages.

[quote]New borrowers have not escaped, with mortgage rates for the average two-year fixed mortgage increasing from 4.27 per cent to 4.66 per cent since the beginning of January. Arrangement fees are also at a record high at an average of £1,439.[/quote]

Christ nearly £1500 to arrange a mortgage the banks certainly are squeezing the proles.

Its SVR drag.

More money taken out of the economy.

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[quote name='interestrateripoff' timestamp='1335862859' post='909027035']
Disappointed in the Wail that it didn't say for IO mortgages.
[/quote]

No doubt the Express will find an estate agent to tell them that buyers will shrug off the increase, taking a mature attitude to the premium they have to pay to get on the ladder.

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Good job I did nothing when my fix ran out, and went on the BMR. Going SVR or fixing would have been the wrong move (again).

Yet my mortgage is relatively small anyway, but every little helps.

As for the HPC is this the begining of the endgame we've been waiting for, or a cynical ploy to get as many borrowers on expensive fixed rate deals as possible?

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[quote name='PopGun' timestamp='1335863359' post='909027043']
Good job I did nothing when my fix ran out, and went on the BMR. Going SVR or fixing would have been the wrong move (again).

Yet my mortgage is relatively small anyway, but every little helps.

As for the HPC is this the begining of the endgame we've been waiting for, or a cynical ploy to get as many borrowers on expensive fixed rate deals as possible?
[/quote]

from the tone of the bankers rep this morning...I think it is serious and getting worse....the implied threat was the number of possessions was not down to forebearance, it was down to the regulator.

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[quote name='Bloo Loo' timestamp='1335863631' post='909027050']
from the tone of the bankers rep this morning...I think it is serious and getting worse....the implied threat was the number of possessions was not down to forebearance, it was down to the regulator.
[/quote]

Was that spin? Forbearance says that they would normally take action but hold back. It says that the bank dare not act for fear of something worse.

If they blame the regulator they are relying on a view of their capital ratios, houses can stay at full value as an asset of the bank unless they repossess and have to write down the value.

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it is amazing how things have changed in the last few months. I got a 5-yr fixed rate deal arranged a few months ago: 3.39% with no product fee. Now there's nothing near that rate and the ones that are closest all have a £1500 product fee.

I just can't get my head around people that buy simply because they get a good 2-year deal. Surely they realise that they're at the mercy of mortgage rates for at least 15 years (by which point they should have paid down enough that they can weather any movements- assuming no MEWing!)

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[quote name='arby1' timestamp='1335865075' post='909027077']
it is amazing how things have changed in the last few months. I got a 5-yr fixed rate deal arranged a few months ago: 3.39% with no product fee. Now there's nothing near that rate and the ones that are closest all have a £1500 product fee.

I just can't get my head around people that buy simply because they get a good 2-year deal. Surely they realise that they're at the mercy of mortgage rates for at least 15 years (by which point they should have paid down enough that they can weather any movements- assuming no MEWing!)
[/quote]
in 15 years the SVR will be -15% and theyll be laughing Edited by Georgia O'Keeffe

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[quote name='Bruce Banner' timestamp='1335866092' post='909027091']
BBC News have wheeled out Ray Boulger to explain it........

And the answer is....... supply and demand.
[/quote]

Ray Boulger knows all he needs to about the economy: The BBC demands ******** and he supplies it.

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More wads of magic money tumbling to the ground from Mervs Mystical Money Tree can't be far off now ... watch for the QE programme to be 'enlarged' at the next MPC meeting or the one after.

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[quote name='mfs1959' timestamp='1335864041' post='909027059']
Was that spin? Forbearance says that they would normally take action but hold back. It says that the bank dare not act for fear of something worse.

If they blame the regulator they are relying on a view of their capital ratios, houses can stay at full value as an asset of the bank unless they repossess and have to write down the value.
[/quote]

Whilst discussing the number of possessions, the rep was challenged that this was only as the result of Government induced rules to be lenient in exchange for help, the rep denied this and said forebearance could only continue at the behest of the regulator...went on about capital ratios and suchlike.

He went on to say that due to the current money market conditions, then it will be hard to maintain these ratios, and indeed, new rules are coming up about more capital needed.

To me, this was a clear threat that if the regulator does his job and applies the capital ratios to come, then forebearance will not be possible.

Banker threatening tanks of the streets again.

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[quote name='Sour Mash' timestamp='1335866514' post='909027101']
More wads of magic money tumbling to the ground from Mervs Mystical Money Tree can't be far off now ... watch for the QE programme to be 'enlarged' at the next MPC meeting or the one after.
[/quote]
I'm not so sure - sentiment has turned against QE from indifference to the acknowledgement that it is hurting pensions etc (there's still little awareness of its inflationary impact though).

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CML : [i]It believes market pressures will keep rates in check as lenders who raise their SVR rates too aggressively risk losing their most creditworthy customers.
[/i]
So they will not raise them too fast but just slowly 1/2% every couple of months... until B) Edited by GinAndPlatonic

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[quote name='GinAndPlatonic' timestamp='1335866910' post='909027113']
CML : [i]It believes market pressures will keep rates in check as lenders who raise their SVR rates too aggressively risk losing their most creditworthy customers.
[/i]
So they will not raise them too fast but just slowly 1/2% every couple of months... until B)
[/quote]

wut?....all those credit worthy customers having trouble paying?

And dont all the other banks borrow from the same place....the last thing the system needs are bankers working on margins below the possession rate.

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[quote name='GinAndPlatonic' timestamp='1335866910' post='909027113']
CML : [i]It believes market pressures will keep rates in check as lenders who raise their SVR rates too aggressively risk losing their most creditworthy customers.
[/i]
So they will not raise them too fast but just slowly 1/2% every couple of months... until B)
[/quote]

Large quantities of excrement making contact with rapidly revolving radiating blades comes to mind.

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[quote name='rantnrave' timestamp='1335866871' post='909027111']
I'm not so sure - sentiment has turned against QE from indifference to the acknowledgement that it is hurting pensions etc (there's still little awareness of its inflationary impact though).
[/quote]

As some of the more economically literate have posted, QE is driving money into unproductive assets.

The pensions issue is one thing. I regarding inflation the BOE did genuinely expect it to start coming down. The fact that it hasn't I think pretty much means further QE is not possible for the time being until a trend can be established.

To me money tied up in housing is cash locked in unproductive assets. The government can increase growth by transferring money out of assets like this into the greater economy.

Of course the pensioners will just whinge that instead of their pensions being worth nothing their houses are worth nothing instead. But ultimately it's pointless complaining. The money has to come from somewhere. And it can't come from people who haven't got it. The only issue for the government is how to extract it in the most politically acceptable way.

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Prepare for the starving masses.


Today's Telegraph:

[quote]
[b]One in five 'couldn't afford food' if mortgage payments rose[/b]

One in seven home owners struggles to pay the mortgage and 20pc would not have enough for essentials such as food if their repayments rose by £100 a month.
[/quote]
[url="http://www.telegraph.co.uk/finance/personalfinance/9238464/One-in-five-couldnt-afford-food-if-mortgage-payments-rose.html"]http://www.telegraph.co.uk/finance/personalfinance/9238464/One-in-five-couldnt-afford-food-if-mortgage-payments-rose.html[/url]


And yesterday:

[quote]
[b]Britain on the Breadline: Middle Class, Hungry and Homeless[/b]

Jagvinder looks at his dwindling supply of food in the cupboards and he knows that in less than a week's time he will be going hungry and will most likely be back on the streets of Birmingham again. However, Jag, as he likes to be known (and who wants to keep his full name withheld), is not a drug addict, alcoholic, long-term unemployed or any of the numerous tags that society bolts on to the hungry and homeless.

Instead, Jag, 36 has entered the legions of middle-class individuals and families in the UK seeking food and shelter after losing a steady wage. It is a story that has become increasingly common and has left millions of others on the brink of destitution.
[/quote]
[url="http://www.ibtimes.co.uk/articles/334864/20120430/society-big-human-interest-foodbank-recession-budget.htm"]http://www.ibtimes.co.uk/articles/334864/20120430/society-big-human-interest-foodbank-recession-budget.htm[/url]

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