Friday, Jun 20, 2008
Moving Target
The Times: Another week, another rate increase from HBOS
HBOS has made 19 changes to two-year fixed-rate mortgage deals in the past six months
Posted by eagle @ 05:08 PM (518 views) Add Comment
3 Comments
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1. jonb said...
Your link doesn't seem to be working, but in any case, they have now made 20 changes since January.
http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article4179970.ece
2. Eagle said...
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4167412.ece
Here is the link again
3. uncle tom said...
The consequences have barely begun to hit home yet.
Some people who bought for the first time 2 years ago on a 2yr fix will be looking at a 50% jump in mortgage payments. If they were struggling to pay the fix because they had over-borrowed, as many (most?) did; what hope have they got?
The credit card companies will surely get wise to the class of customer who has little home equity and has to resort to plastic to pay the mortgage. The risk of them never recovering the card debt must be unacceptably high in these cases.
My guess is that come the autumn (if not already) the card companies will proactively seek to identify customers (and potential customers) who are drowning in mortgage debt, and cut the plastic lifeline. By the close of the year, the number of mortgagees in 3 month + arrears will have begun to soar, leading to a wave of repo's this time next year.
But it won't stop there. By the autumn of '09, the first wave of repo bargain hunters will have spent much of their cash, while the flood of forced sales continues.
That's when the real bargains are likely to be found..