Monday, Apr 27, 2009
Check your Provider won't break their Promise before Housebuying!
BBC: Nationwide axes Mortgage Promise
The UK's biggest building society, the Nationwide, has abandoned a promise to peg its variable rate mortgages to the Bank rate. Existing customers on the Nationwide's variable rate home loan, called BMR, are guaranteed to pay no more than 2% above the Bank rate, currently at 0.5%. But new customers will have no such guarantee when their fixed-rate deal ends and they shift to a variable rate.
Posted by alan @ 01:04 PM (1925 views) Add Comment
23 Comments
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1. titaniccaptain said...
Don't tell me the Inflation thread has been pulled!!!! that is just downright rude it was an established thread with a good debate on a very ON topic theme......
Back to Alan's article.
Again we are witnessing the lenders tightening up their belts and placing disincentives in place for borrowing.......pulling the rug compfort rug from underneath the feet of potential first time buyers.
2. mark wadsworth said...
It's a free world. If people can borrow cheaper elsewhere, then they'll do it. And if they can't that means that the Nationwide isn't a bad deal.
3. dj2000 said...
Looks like a lot of people on the fixed rate will be in for a shock when it comes to renew
4. crunchy said...
More cracks showing. This is now a game of bottle.
If you want to know where future rates are going just look at bank deals.
We�ve been broken down
to the lowest turn
Bein' on the bottom line
sure aint no fun
But if we should be evicted
huh, from our homes,
we�ll just move somewhere else
and still carry on
Oh
(hold on) hold on
(hold on) hold on
Ooooh, aah, baby
(hold on) hold on
(hold on) ooh oooh aah
(Chorus)
The only way is up, baby
for you and me now
The only way is up, baby
for you and me now
aaaaah�
Now we may not know, huh,
where our next meal is coming from,
but with you by my side
I�ll face what is to come
You get the idea! Thanks YASS.
5. paul said...
Combined with the revelation that Northern Rock will be sold off later this year, I'd say the effects in the pipeline do not bode well for the UK housing market.
6. jack c said...
Nationwide need to increase/improve margins hence the abandonment this "promise" - they have been playing White Knight to a number a failing Societies and need to ensure they have not bitten off more than they can chew.
7. pelethar said...
"Housebuying" isn't a word. Don't want to be picky but three threads in a row was enough to make it start getting on my tits a bit.
8. crunchy said...
Housebuying nipples sorry triples!
Cheer up pelether, this is the kind of news that should ease your discomfort.
9. tyrellcorporation said...
My eyes are still bulging at that graph (earlier thread) showing the correlation between house prices and unemployment. That is the most compelling chart I've yet seen which indicates the future direction of house prices. JOY!
10. crunchy said...
6. jack c said...and need to ensure they have not bitten off more than they can chew. LOL
11. bluebeach said...
TC @ 9..... Hardly "JOY" for me as I will probably loose my job this week after 22 years in Design... still I sold at the peak and dread to think of the weight on my shoulders if I still owned the wreck now.... I will bounce back and when I do, I just hope that prices reflect a good and true honest wage.... See you all on the other side! :O)
12. tyrellcorporation said...
Sorry to hear that Bluebeach, I work in design too but so far I've managed to keep going. Unfortunately design is one of the first industries to feel the pain - I graduated in 1990 (cool timing eh?). I didn't get a proper design job until 1994!
13. crunchy said...
bluebeach sad to hear that too.
Fate is a very strange thing. I was at a very low ebb in my life and it seemed that I could not do anything right, but succeed in the downward spiral I was in.
I now thank God that happened. Fate is a very strange thing. Life for me has seemed like going through the darkest tunnel to come out into the brightest light.
If it happens embrase it, you never know where it will lead you. See you on the other side, indeed!
14. str 2007 said...
bluebleech & tyrell
What do you guys design ?
Crunchy
What made your life so bright ? and don't say HPC !
15. crunchy said...
14. str 2007 said...What made your life so bright ? and don't say HPC
Realising that the suffering I went through in pursuit of the way I wanted to live my life with the odds truely stacked against me finally coming to fruition.
I never gave up on it. I had to wait 50years for it to happen and went through hell with the choices I made to get there, but from one little thing everything else just slotted into place. That thing was believing I could do it.
Of course it's all down to HPC! lol
16. crunchy said...
It's not about money, it's about freedom!
17. dj2000 said...
Crunchy, I agree with what you say, its about freedom!
We can be happy within ourselves regardless of money, material possessions or dare I say it houses!
18. bluebeach said...
STR.... I design gears for the big yellow diggery things... the market has collapsed in this sector and still very much on a downward path... no green, or "yellow" shoots in this business! :O)
Your predictions on gold and a global threat to society are starting to ring true STR...keep following the charts..
19. str 2007 said...
crunchy & dj2000
All very admirable, but surely it's alot easier to feel free when you have 'enough' money.
And when I say enough I mean enough to cover the monthly bills etc. a bit for your pension pot and perhaps a small holiday each year.
Now to clarify that a little further.
Monthly bills excl. rent/mortgage = £1200
Mortgage/rent = £800
£2k holiday + Christmas p/a = £200 p/m
1 No. small car inc. running costs = £200 p/m
Pension = £400 p/m
Total = £2800 (or approaching £50k earnings before tax)
Pension was calculated on building up a £300k pot over 30 years to give a £15k income p/a based on 5% return.
50% of the pension pot coming from growth. ie save roughly £150k the other 150k coming growth of fund over the 30 year period.
Now I dare say you could argue with a few of the figures but I'll bet that is what the average family has been getting through, even if they haven't been earning it.
Providing that kind of money is coming in and will in the future with reasonable certainty one would feel relatively free and able to have a few choices.
If you've cracked the freedom thing without money then please elaborate. I imagine there are about 2000 readers awaiting your responses !
20. str 2007 said...
blue bleech
Sorry you've confused me with S2R1 re: the Gold.
Always find it interesting to see what people do.
I guess you're a wiz with Auto Cad (something I bought nearly a year ago but have yet to learn how to use it properly).
If indeed you are a wiz with autocad, don't suppose you've considered training others - just a thought.
21. crunchy said...
19. str 2007 said...crunchy & dj2000
All very admirable, but surely it's alot easier to feel free when you have 'enough' money.
You missed my point. I have enough money to have the freedom. I was putting the importance of freedom first.
There are lots of people with a ton of money but cannot say they are free.
It is the "love" of money that holds them in chains.
22. str 2007 said...
crunchy
I did't miss your point atall, but saying you've freed yourself from money is vey easy when you have at least enough as I illustrated above. If you have evenmore than what is comfortably enough then it just gets easier.
Nothing more than a guess here but excluding children and retired people I suspect of those aged between18 and 65 only 10-20% at the most would be in a position to create the 'feedom' mindset of which you talk.
Unfortunately the minimum financial requirement has to or should come before the 'freedom' mindset is able to be achieved. (unless of course you're naturally really talented and frankly don't care or have no ambition.)
23. crunchy said...
22. str 2007
Totally agree!
The only other way is to live as a hobo and be happy with that, or to be lucky enough to love your life as it is.
I never was with both.