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Important - I Reckon Q4 Delinquency Rates And Retail Sales Are About To Rise/fall Significantly....

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http://www.telegraph.co.uk/finance/persona...-mortgages.html

Bank of Scotland, for example, offered a two-year tracker at Bank Rate minus 0.26 of a percentage point. Two years ago, Bank Rate stood at 5.75pc, so the rate that borrowers paid at the outset was 5.49pc. But now that the Bank of England has cut its rate to 0.5pc, the interest rate on the loan is 0.24pc, so a borrower with £150,000 outstanding on his mortgage is paying just £30 a month in interest.

The two-year introductory deal will expire on October 31, however, and the rate will revert to Bank of Scotland's SVR – currently 4.84pc. Borrowers' interest rates will rise by 4.6 percentage points – a colossal increase that means the interest bill on a £150,000 mortgage will be £605 a month.

The lowest tracker rate available two years ago was Cheltenham & Gloucester's at 1.01 percentage points below Bank Rate. When this rate expires on September 30, the rate will revert to the bank's SVR of 2.5pc – the lowest on the market. Out of a total of 399 two-year tracker mortgages available in August 2007, 86 (or 22pc) were priced at Bank Rate or below, according to Moneyfacts, the data provider.
Among the highest SVRs is Chesham Building Society's 6.45pc – almost 6 percentage points above the Bank of England's official rate – while several lenders, including Stroud & Swindon, Newcastle and Nottingham building societies, charge 5.99pc. Darlington Building Society's SVR is 5.95pc, West Bromwich Building Society's is 5.84pc.
"Those with little or no equity will have few options. "They will either need to stick with their lender's SVR, which may represent a good ongoing variable deal anyway, or, if they would like to lock into a fixed rate, they should see what deals their lender may have.''

Looks as if high unemployment in combination with some of these SVR rates is going to force up missed payments and potentially cause the governments bill for mortgage interest relief to skyrocket.

MORE IMPORTANTLY, with all of these trackers set to expire, all that cash propping up the retail figures and paying down debt are about to take a major hit....

v

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I wonder how many heeded this good advice?

From the retail figures, it appears not many.

And gross lending only went negative temporarily I believe.

Edited by mbga9pgf

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From the retail figures, it appears not many.

And gross lending only went negative temporarily I believe.

Doesnt't surprise me to hear that it looks like not many have taken the chance to pay extra off their mortgage whilst they had the chance to.

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Thats the thing i dont get. We're constantly told of 'low' interest rates keeping the market afloat, but given discount trackers were commonplace until 18 months ago, and now trackers are typically +2 or +3%, rates are no lower than the past 6 or 7 years. People are being duped. The banks are cleaning up. Again.

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Thats the thing i dont get. We're constantly told of 'low' interest rates keeping the market afloat, but given discount trackers were commonplace until 18 months ago, and now trackers are typically +2 or +3%, rates are no lower than the past 6 or 7 years. People are being duped. The banks are cleaning up. Again.

Well, its about to kick the sh&t out of retail. Just in time for crimbles. Banks are obviously wishing the UK high street a merry Christmas and a redundant new year!

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Interesting. Would certainly speed things up.

I was thinking the rate of HPC would be slow until BoE IRs increase as so many were locked in.

Some of my friends give the impression they're locked in forever at below BoE IRs. Could this be

the case?

Also, I'm sure I know someone who locked in at base + 0.5% about a 8-12 months ago. Are they lying?

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The thing that confuses me about retail sales figures is whether the percentages are based only on currently active shops. If so, they don't take into account all the store closures over the period.

It's the only way I can account for the sales figures rising while about 1/5th of the shops in my home town have disappeared.

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Doesnt't surprise me to hear that it looks like not many have taken the chance to pay extra off their mortgage whilst they had the chance to.

They could always do it with the pennies they find on the floor.

Too many clueless people out their with no idea about finances.

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The thing that confuses me about retail sales figures is whether the percentages are based only on currently active shops. If so, they don't take into account all the store closures over the period.

It's the only way I can account for the sales figures rising while about 1/5th of the shops in my home town have disappeared.

I think some shops went under not because they were not making sales, but because they could no longer roll over insane levels of debt.

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Interesting. Would certainly speed things up.

I was thinking the rate of HPC would be slow until BoE IRs increase as so many were locked in.

Some of my friends give the impression they're locked in forever at below BoE IRs. Could this be

the case?

Also, I'm sure I know someone who locked in at base + 0.5% about a 8-12 months ago. Are they lying?

There were some lifetime tracker deals at around +.99% about two years ago too. However, I'm not sure how many went for them as opposed to the slightly better short term ones.

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Looks as if high unemployment in combination with some of these SVR rates is going to force up missed payments and potentially cause the governments bill for mortgage interest relief to skyrocket.

Support for Mortgage Interest is paid at a fixed rate.

'The Government's mortgage support schemes explained' [May 2009]:

http://www.timesonline.co.uk/tol/money/rea...icle6206712.ece

Support for Mortgage Interest

Homeowners on income support, the jobseeker's allowance, pension credits or other means-tested benefits can claim 100 per cent of the interest on their mortgage repayments under the Support for Mortgage Interest (SMI) scheme.

Individuals need to wait 13 weeks after losing their job before making a claim. The threshold on the size of mortgages included is £200,000.

The interest rate that is used to calculate claims is frozen 6.08 per cent until, at least, December.

The high fixed rate means that some claimants -- whose mortgage rates have fallen in line with the base rate over the past six months -- will have their home loans overpaid by the Government, reducing the mortgage term.

The Department for Work and Pensions (DWP), which runs the scheme, estimates that 200,000 individuals will benefit over the next year. The scheme has been in operation for 20 years and figures from the DWP show that most claimants are pensioners.

New claimants who are on jobseeker's allowance are allowed to collect SMI for only two years.

My bold emphasis.

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Interesting. Would certainly speed things up.

I was thinking the rate of HPC would be slow until BoE IRs increase as so many were locked in.

Some of my friends give the impression they're locked in forever at below BoE IRs. Could this be

the case?

Also, I'm sure I know someone who locked in at base + 0.5% about a 8-12 months ago. Are they lying?

Yes several banks offered lifetime trackers - mine is with Nat West at base +0.49. However, I don't think there was anything like that available 12 months ago.

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Support for Mortgage Interest is paid at a fixed rate.

'The Government's mortgage support schemes explained' [May 2009]:

http://www.timesonline.co.uk/tol/money/rea...icle6206712.ece

My bold emphasis.

you have missed my point. Someone who is unemployed but has a mortgage at a rediculously low IR probably does not currently need the Mortgage scheme. They will as soon as their rate lapses to SVR though

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you have missed my point. Someone who is unemployed but has a mortgage at a rediculously low IR probably does not currently need the Mortgage scheme. They will as soon as their rate lapses to SVR though

Do you seriously think that there are people signing on as unemployed but refusing to claim 6% interest on their mortgage when they are entitled to it?

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Do you seriously think that there are people signing on as unemployed but refusing to claim 6% interest on their mortgage when they are entitled to it?

very few are on that scheme. There is another scheme that is by far being more widely taken up. Check the stats. If you have ANY savings or assets, you are expected to use those first before going on the scheme. Which means you dont get nowt until your 50 quid a month mortgage has eaten away at all of your savings.

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The thing that confuses me about retail sales figures is whether the percentages are based only on currently active shops. If so, they don't take into account all the store closures over the period.

It's the only way I can account for the sales figures rising while about 1/5th of the shops in my home town have disappeared.

ONS figures are just poorly compiled twaddle manipulated to provide whatever answer the government is looking for depending on what they want to do with interest rates or make the populace think in general about the economy.

As I've said previously, I copy figures from newspaper sudoku puzzles on to our ONS return and our erratic sales figures have never been queried.

The CBI figures are again not to be trusted and I'm deeply suspicious that there's a quid pro quo arrangement with the governement on them.

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