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Britain's 'bad Bank' Warns Of Interest Rate Dangers Ahead

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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?

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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.

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'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.

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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

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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

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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.

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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.

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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/

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