[Bloo Loo]

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.

[Bloo Loo]

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

http://www.heraldsco...bfcde35f5f7d9fa

[moonriver]

Bloo Loo, on 01 May 2012 - 08:00 AM, said:

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

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.

[thecrashingisles]

http://www.dailymail...osts-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

[moonriver]

thecrashingisles, on 01 May 2012 - 08:15 AM, said:

http://www.dailymail...osts-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

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

[koala_bear]

thecrashingisles, on 01 May 2012 - 08:15 AM, said:

http://www.dailymail...osts-loans.html

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.

[koala_bear]

moonriver, on 01 May 2012 - 08:25 AM, said:

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

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...

[TheCountOfNowhere]

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.

[interestrateripoff]

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.

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

Its SVR drag.

More money taken out of the economy.

[thecrashingisles]

interestrateripoff, on 01 May 2012 - 09:00 AM, said:

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

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.

[PopGun]

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?

[Bloo Loo]

PopGun, on 01 May 2012 - 09:09 AM, said:

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?

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.

[mfs1959]

Bloo Loo, on 01 May 2012 - 09:13 AM, said:

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.

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.

[arby1]

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!)

[georgia o'keeffe]

arby1, on 01 May 2012 - 09:37 AM, said:

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!)

in 15 years the SVR will be -15% and theyll be laughing

This post has been edited by Georgia O'Keeffe: 01 May 2012 - 09:50 AM