Realistbear Report post Posted January 19, 2011 http://uk.finance.yahoo.com/news/Home-owners-see-cost-mortgage-tele-1115266089.html;_ylt=Ailn7sow7eQod.01H2Sm3X_Sr7FG;_ylu=X3oDMTE4dW5qbDhyBHBvcwMyBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNob21lb3duZXJzc2U-?x=0 Home owners see cost of mortgage rise more than £1,000 Home owners are feeling the pain of an increase in interest rates that hasn’t even happened yet as lenders withdraw their cheap fixed rate mortgages ahead of an expected rise, expert warn. One high street lender withdrew some of its most competitive deals last week, replacing them yesterday with higher mortgage rates. The move will cost some borrowers, who are keen to lock into a new fixed-rate deal and guard against future interest rate rises, an extra £1,050 a year on their mortgage payments. Other lenders are expected to follow suit within days amid growing speculation that the Bank of England will increase interest rates to help combat inflation. Its a rate hiking frenzy folks! +1 Quote Share this post Link to post Share on other sites
rantnrave Report post Posted January 19, 2011 Who needs mortgage rate rises? The soaring price of petrol and food is having the same effect... Admittedly, I would appreciate a boost to the rate my savings are getting though, but as long as HPs are falling, then I can live with it. Purely hypothetical, but eight months ago, my savings equalled 45% of the av Halliwide HP. Now they are at 50% . Quote Share this post Link to post Share on other sites
Pent Up Report post Posted January 19, 2011 (edited) I read on MSE that first direct withdrew their 5 year fix day before yesterday. I wonder if it will mean a pick in SVRs too? That would be sweet Edited January 19, 2011 by Pent Up Quote Share this post Link to post Share on other sites
Pent Up Report post Posted January 19, 2011 Also should do wonders for demand! Quote Share this post Link to post Share on other sites
gingertips Report post Posted January 19, 2011 sounds like a lot of mortgage applications... Quote Share this post Link to post Share on other sites
Realistbear Report post Posted January 19, 2011 Rate rise fears spark rush to fix mortgages: Biggest jump in cost of living since records began By Becky Rebecca Barrow Last updated at 9:12 AM on 19th January 2011 Homeowners were rushing to ‘fix’ their mortgages yesterday amid fears that soaring inflation will trigger a rate rise within months. Banks and building societies, such as First Direct, Northern Rock and Skipton, were dramatically pulling their cheapest deals and replacing them with more expensive options. The ‘fixed rate rush’ was triggered by shocking figures showing the biggest monthly rise in the cost of living since records began . Read more: http://www.dailymail.co.uk/news/article-1348463/UK-inflation-triggers-mortgage-rate-rise-fears-cost-living-increases.html#ixzz1BTi6D0pd http://www.dailymail.co.uk/news/article-1348463/UK-inflation-triggers-mortgage-rate-rise-fears-cost-living-increases.html#ixzz1BTi6D0pd' rel="external nofollow">Shock and awe is hitting the sheeple. I can see people scurrying as I peer through my net curtains onto the high street! (not really). What Merv is not doing the market is doing for him. Quote Share this post Link to post Share on other sites
frenchy Report post Posted January 19, 2011 I read on MSE that first direct withdrew their 5 year fix day before yesterday. I wonder if it will mean a pick in SVRs too? That would be sweet I have reserved a 5 year fixed with FD until may 2011. This product is no longer available on their website indeed. THey still have two 5 yrs fixed (LTV 85% and 75%) but my 65% deal is gone and the new rates of the 85 and 75% deal has gone up... Quote Share this post Link to post Share on other sites
Realistbear Report post Posted January 19, 2011 The great Brown Bubble is unwinding at last. The grossly inflated UK property market is the last man standing in the western world and long overdue a sharp correction of at least 40%. With jobs being shed in the thousands and interest rates on the rise we should start to see affordable housing by year end. We must NEVER rely on inflation in house prices as the main stay of our economy again. Everyone loses except the banksters who are busy clearing the tills before the housing market pulls them down again. Repossessions will start to climb now that the government are pulling the subsidies and I am pleased to reprot 10% or more drops in my region according to Zoopla data for houses I am tracking. - Real istbear, Brighton, 19/1/2011 11:11 Click to rate Rating 1 Read more: http://www.dailymail.co.uk/news/article-1348463/UK-inflation-triggers-mortgage-rate-rise-fears-cost-living-increases.html#ixzz1BTk4ORAx My DM post with one green arrow (my own). get in there................................. Quote Share this post Link to post Share on other sites
long time lurking Report post Posted January 19, 2011 It is just scare tactics being used to scare the sheepoel of boe trackers and svr`s If you are on a boe+2-3% tracker boe base would have to increase by 1.5 to2.5% and you would still have the same rate as you would pay for a five year fix at this moment in time ,and something that must also be considered is when is the last time you saw a fixed rate deal of any length of time on offer at below boe rate? there is a big gap between the svr/boe tracker`s and fixed rate deal`s, are the bank`s going to lower the margin`s on these deals? GIVE ME MORE MONEY NOW SAID THE BANK Quote Share this post Link to post Share on other sites
rantnrave Report post Posted January 19, 2011 The great Brown Bubble is unwinding at last. The grossly inflated UK property market is the last man standing in the western world and long overdue a sharp correction of at least 40%. With jobs being shed in the thousands and interest rates on the rise we should start to see affordable housing by year end. We must NEVER rely on inflation in house prices as the main stay of our economy again. Everyone loses except the banksters who are busy clearing the tills before the housing market pulls them down again. Repossessions will start to climb now that the government are pulling the subsidies and I am pleased to reprot 10% or more drops in my region according to Zoopla data for houses I am tracking. - Real istbear, Brighton, 19/1/2011 11:11 Click to rate Rating 1 Read more: http://www.dailymail...l#ixzz1BTk4ORAx My DM post with one green arrow (my own). get in there................................. Didn't get round to reading the article - was immediately distracted by the girl in the picture and started 'daydreaming'... Quote Share this post Link to post Share on other sites
Democorruptcy Report post Posted January 19, 2011 The great Brown Bubble is unwinding at last. The grossly inflated UK property market is the last man standing in the western world and long overdue a sharp correction of at least 40%. With jobs being shed in the thousands and interest rates on the rise we should start to see affordable housing by year end. Don't you mean "more talk of" interest rates on the rise? i.e. using the suggestion of it to say to people "QUICK - buy that house and get a fixed rate mortgage before interest rates rise - HURRY" Quote Share this post Link to post Share on other sites
Bloo Loo Report post Posted January 19, 2011 It is just scare tactics being used to scare the sheepoel of boe trackers and svr`s If you are on a boe+2-3% tracker boe base would have to increase by 1.5 to2.5% and you would still have the same rate as you would pay for a five year fix at this moment in time ,and something that must also be considered is when is the last time you saw a fixed rate deal of any length of time on offer at below boe rate? there is a big gap between the svr/boe tracker`s and fixed rate deal`s, are the bank`s going to lower the margin`s on these deals? GIVE ME MORE MONEY NOW SAID THE BANK matters not much for current mortgage holders. the market is determined by NEW borrowers. I cant for the life of me understand WHY a human being has to rely on a financial institution to get the wherewithal to buy a roof over his head. This is a monopoly that should be prohibited by law. Quote Share this post Link to post Share on other sites
winkie Report post Posted January 19, 2011 This is just a FUD sell from the banks to get new fees and more interest. Plus they're keen to lower their exposure (most new loans require very good LTV in order to get the best rates). I've had 4 unsolicited calls from my current mortgage provider in the last 6 months, all trying to get me to move to fixed deals of some sort or other. I cannot imagine what would happen to the UK (economy and society) if interest rates were to actually rise Buckers People would spend even less than they are/will be doing........only a small minority will escape the belt tightening, but it is the poorer after all that make the rich richer.....so high prices and falling wages/income will eventually feed into all the cracks in society. 2% inflation is a healthy balance.......heavy weighting on one side will tip the balance over. Quote Share this post Link to post Share on other sites
gingertips Report post Posted January 19, 2011 It is just scare tactics being used to scare the sheepoel of boe trackers and svr`s If you are on a boe+2-3% tracker boe base would have to increase by 1.5 to2.5% and you would still have the same rate as you would pay for a five year fix at this moment in time ,and something that must also be considered is when is the last time you saw a fixed rate deal of any length of time on offer at below boe rate? there is a big gap between the svr/boe tracker`s and fixed rate deal`s, are the bank`s going to lower the margin`s on these deals? GIVE ME MORE MONEY NOW SAID THE BANK exactly this - the BOE has been quoted as not wanting to increase rates in 2011 at all - the banks know this, so why not pull now off the back of inflation wobbles, scare a lot of customers who have trackers to switch now to more expensive fixed rates - at the same time pulling in a few quid for arrangement fees and early redemption penalties... Quote Share this post Link to post Share on other sites
Ulfar Report post Posted January 19, 2011 exactly this - the BOE has been quoted as not wanting to increase rates in 2011 at all - the banks know this, so why not pull now off the back of inflation wobbles, scare a lot of customers who have trackers to switch now to more expensive fixed rates - at the same time pulling in a few quid for arrangement fees and early redemption penalties... Gonna be a bit of a shock for the banks if the BOE do raise rates. What is even funnier is that if the banks raise their rates with or without a base rate rise the cost of SMI payments rises as this is based on an average of mortgage variable rates. People on a fixed rate at this point might be quids in again. Quote Share this post Link to post Share on other sites
lulu Report post Posted January 19, 2011 http://uk.finance.yahoo.com/news/Home-owners-see-cost-mortgage-tele-1115266089.html;_ylt=Ailn7sow7eQod.01H2Sm3X_Sr7FG;_ylu=X3oDMTE4dW5qbDhyBHBvcwMyBHNlYwN5ZmlUb3BTdG9yaWVzBHNsawNob21lb3duZXJzc2U-?x=0 Home owners see cost of mortgage rise more than £1,000 +1 But all 'homeowners' are hugely wealthy thanks to the continuing inflation of property prices so I don't know what anyone is bothered about. Maybe mortgage holders should be getting a bit concerned but homeowners will be fine. Quote Share this post Link to post Share on other sites
