Friday, Sep 28, 2007

Standard & Poor's report on mortgage resets

Guardian: Poorest could see mortgage payments shoot up 60%

Don't you just love that name - Standard & Poor's?

Posted by mybrainhurts @ 05:02 PM (533 views) Add Comment

3 Comments

1. confused76 said...

I just keep saying that mortgage interests are NOT influenced by the BoE base rate... and people ask "but if I have a tracker" da da da...
well, homeowners will learn for themselves when the remortgage this year

Friday, September 28, 2007 05:05PM Report Comment
 

2. fahrenheit451 said...

Yes, there is a difference between a "2 year deal" with (a) BoE base rate tracker or (b) a Standard Variable Rate tracker.
But discounted or not for the "2 year deal", they all go onto the SVR at the end of the deal.

And what if after the deal, your credit rating is checked against the new rules, if your mortgage company moves you onto a higher risk rate, or just puts up the SVR so that everyone is penalised and then if you qualify for a discount due to better Credit Rating, LTV, or Income Multipier, it can offer you a discount off the SVR, with only a nominal setup fee.

Its easy to see how every SVR will move to about 3% over BoE, then whoopee, they offer prime customers a 2.5% discount.
Er ...
Sub-Prime customers, will have difficulty changing lenders as they will not even qualify for a loan if they acutally have to re-apply.

Friday, September 28, 2007 06:57PM Report Comment
 

3. voiceofreason said...

Our local free paper has the bottom half of the front page covered with two adverts. One for :

"Sell Your House & Keep Your Home"

The next for :

"Are You Facing Repossession, We Can Help You Stay In Your Home"

What more evidence do we need ?
The Crash is Nigh :-)

Saturday, September 29, 2007 08:41AM Report Comment
 

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