Friday, May 28, 2010
Its time to panic borrowers....
BBC News: Lloyds ups SVR
Widely predicted rises in IR are soon to be a reality whether Merv does it or not....
Posted by chrisch @ 05:21 PM (1197 views) Add Comment
7 Comments
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1. alan said...
As the number of lenders increasing SVRs grow, there is less and less point in keeping rates at 0.5%. Its time to increase them to fight inflation. Don't we need to protect the pound, Merv?
This will mean house prices will no longer be so affordable and the prices will go down a little.
Ah, fancy that.
2. estrader said...
The people who warned in advance said there is a financial crisis in the making because there is too much debt and too much consumption fuelled by keeping interest rates too low for too long. The people in charge of these policies ignored them and said that there isn’t a problem.
NOW THERE IS A PROBLEM.
The people STILL in charge think that the problem can be solved by more debt and more consumption through keeping interest rates low. They are again ignoring the people who are saying that interest rates are too low and that their policy must change. Go figure.
reCaptcha: "million sheepish".... I'm serious!
3. mark said...
there are very clear signs rates are about to go up, lenders are hiking rates up , subtle talk in government etc
4. str 2007 said...
But alot of people who borrowed heavily and got a fixed rate mortgage a few years ago have reverted to a ridiculous 1% above BoE base rate.
These mortgages are part of their contract.
The banks are writing to them asking if they'd like to change. And guess what, they're saying get stuffed.
There is no good reason IMO that rates can't go up several % as there's alot of peoples mortges that will still be 1% above base and they won't be changing in a hurry.
Somewhere along the line the banks screwed up terribly by having mortgages revert afeter a fixed rate/period to a very small % above B o E base rate.
5. karma4all said...
Nationwide just sent out a letter stating that they will be adding a 1.5% letting interest to their BMR for those letting out their property for over 3 years.
6. Jpjh said...
Ahhhh, watch the pressure on the MPC to raise rates now from the banks. They just didnt understand the long term implications... morons
7. Stu531 said...
What's interesting though, is that we won't suddenly reach a percentage where a big crash happens. What will happen is that, for every increment of interest rate, there will be *some people* who can't afford to continue. And indeed, some people who fear that it will be the start of much larger rises. So - STR - whilst you're correct in saying that people will be able to afford a small increase without changing in a hurry, it will do two things: cause worry, and cause problems for a minor few.
If you couple this with the CGT changes, and unemployment figures (and sadly, I've become one of them due to public sector cuts), there's only one way to go now.