interestrateripoff Posted October 30, 2014 Share Posted October 30, 2014 http://uk.reuters.com/article/2014/10/30/uk-britain-bad-bank-idUKKBN0IJ0ZY20141030 Britain's 'bad bank' has already begun contacting around 20,000 customers whom it thinks might have problems repaying their mortgages when interest rates start to rise, its chief executive said on Thursday. British lenders are preparing for the first interest rate rise since 2007, expected next year. Worried that borrowers could struggle after years of rock-bottom rates, major lenders like Royal Bank of Scotland (RBS.L) have said they would pre-empt trouble by contacting worried customers. "We've already started that process. It's obviously going to be an issue for some customers," said Richard Banks, chief executive of UK Asset Resolution (UKAR), Britain's seventh-largest mortgage lender. "If interest rates increase by 1 percent we would estimate that potentially around 20,000 customers might have problems." An underestimate? Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted October 30, 2014 Share Posted October 30, 2014 Big underestimate IMO, but if they are contacting people about this it is just more fuel on the fire of negative sentiment. All good. Quote Link to comment Share on other sites More sharing options...
zugzwang Posted October 30, 2014 Share Posted October 30, 2014 They've neglected to factor the £140+bn Osborne/Balls will need to borrow next year and every year thereafter to keep everyone in a job. Quote Link to comment Share on other sites More sharing options...
Lifes a game Posted October 30, 2014 Share Posted October 30, 2014 So Yea, we leant too much.... watch out! Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted October 30, 2014 Share Posted October 30, 2014 'Britain's bad bank' doesn't really narrow it down does it? Quote Link to comment Share on other sites More sharing options...
zugzwang Posted October 30, 2014 Share Posted October 30, 2014 'Britain's bad bank' doesn't really narrow it down does it? Harder still to identify Britain's good bank... or even Britain's good banker. Quote Link to comment Share on other sites More sharing options...
billybong Posted October 30, 2014 Share Posted October 30, 2014 Maybe they meant Britain's worst bank but even that doesn't narrow it down. Quote Link to comment Share on other sites More sharing options...
Venger Posted October 30, 2014 Share Posted October 30, 2014 One on MSE the other day, despite answers that he can throw the letter in the bin.... On HPC some membrs would be 'not worth downsizing for sake of a measly £50,000 - £360,000 and having to pay stamp duty on a smaller place, and you miss out on all the future HPI gains on the more expensive place.' Worse than MSE. Evidence Required Repayment Plan Interest Only Mortgage I took out a 12 year interest only mortgage 5 years ago which ends 2021. Got a letter today from my provider Lloyds who insist I provide details of my repayment plans for the principal sum at the end of the mortgage. I had always planned to sell the property in 2018 to clear the mortgage. I do not have a repayment vehicle in place although, I have 33% of the mortgage value in cash savings which I would like to keep as some security meanwhile. I have 65% equity in my property at todays marketplace. My question is can Lloyds force me to sell my property now to repay my mortgage earlier than the finish date? Or can they insist I reduce my mortgage using my cash saving. And why are they getting so nervous. Regards! Thanks for all comments, I think I will put my property up for sale, pay off the mortgage and and use the equity to downsize ready for my dotage. http://forums.moneysavingexpert.com/showthread.php?t=5099711 Quote Link to comment Share on other sites More sharing options...
long time lurking Posted October 30, 2014 Share Posted October 30, 2014 said Richard Banks, chief executive of UK Asset Resolution (UKAR), Britain's seventh-largest mortgage lender. Why are UKAR being described as a lender as they just hold all the shit B&B/ Northern Rock left behind .... its not exactly rocket since being able to work out their distressed mortgage holders will have trouble meeting payments when interest rates rise Quote Link to comment Share on other sites More sharing options...
cybernoid Posted October 30, 2014 Share Posted October 30, 2014 They just have to wait for nominal wage increases right? Quote Link to comment Share on other sites More sharing options...
Corruption Posted October 30, 2014 Share Posted October 30, 2014 Ive had enough of these apocalyptic warnings of what will happen if rates rise by a couple of percent. One good thing to come out of it will be the retards who make these warnings will be out of a job. Quote Link to comment Share on other sites More sharing options...
John The Pessimist Posted October 30, 2014 Share Posted October 30, 2014 (edited) I reckon Fergus & Judith must be taking bulk deliveries of mail...... Edit basic grammar Edited October 30, 2014 by John The Pessimist Quote Link to comment Share on other sites More sharing options...
Andy T Posted October 31, 2014 Share Posted October 31, 2014 Are they planning a SVR rise next year even if the base rate doesn't perhaps? Plenty of mortgage holders with little/no equity unable to remortgage I'd imagine. Quote Link to comment Share on other sites More sharing options...
bkkandrew Posted November 1, 2014 Share Posted November 1, 2014 But, hang on, there is no need for this, as Dave said that these zero rates can go on forever. I believe him! Why do others not? Quote Link to comment Share on other sites More sharing options...
The Masked Tulip Posted November 2, 2014 Share Posted November 2, 2014 But, hang on, there is no need for this, as Dave said that these zero rates can go on forever. I believe him! Why do others not? The lady in this video thinks that global IRs are going to go through the floor because of what Japan is now doing printy printy. http://www.otterwoodcapital.com/2014/10/31/pedal-to-the-metal/ Quote Link to comment Share on other sites More sharing options...
billybong Posted November 2, 2014 Share Posted November 2, 2014 (edited) Her summary of the Otterwood video My thoughts? Abenomics is the kiss of death for Japan. Edited November 2, 2014 by billybong Quote Link to comment Share on other sites More sharing options...
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