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Housing Sale Velocity And The Svr Dilemma

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Just reading the RBS thread on SVR's.

Rbs Agm: Almost Half Mortgages Still On Svr

It then occured to me how many people aren't going to move home because the SVR is too a good deal to lose, not just at RBS but other lenders as well? Low base rates make it foolish to move if you don't have to?

If you are happy in the home you are in and don't need to move, stay put. This naturally means that the housing market could remain sluggish for many years at a reduced velocity. Pre 2007 buyers staying put unless they need to move out of necessity meaning the housing market relies totally on post 2008 purchasers, FTB and those forced to move because of a new job, babies etc...

Is there any evidence this is happening that those who are on SVR from pre crisis mortgages have simply stopped moving like it was the early 2000's when people moved for fun?

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2007 buyers need to emerge from hibernation with a 10-20% deposit to allow them to move plus costs. That is still going to be a challenge in parts of the country. In my street, the last sale (2013) was 12% below the peak price (2007) in nominal terms.

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2007 buyers need to emerge from hibernation with a 10-20% deposit to allow them to move plus costs. That is still going to be a challenge in parts of the country. In my street, the last sale (2013) was 12% below the peak price (2007) in nominal terms.

I would guess this is the situation for a lot of the country ,it`s not economically viable to move ...how many liar loans are still out there on SVR`s i would guess a hell of a lot

the market is zombiefied

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A lot of people are also mortgage free,or very low mortgage.The HPI has made the gaps between property sizes huge.Here a three bed semi might go for £120k a four bed detached £190k.Fifteen years ago the difference was about £20k.People who have low/no mortgage dont fancy putting one around their neck for an extra bedroom that is more than their original house purchase cost.

There is also the fact getting a mortgage isnt easy for a lot of people.My mortgage ran from 1993 up until now.Since 2001 i wouldnt get a mortgage with anyone (ignoring liar loans).Temporary work,self employed etc.

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My wife grew up in a 2 bedroomed house with her grand parents, parents, 3 sisters and a brother.

People can be flexible.

Air beds,

bed settees,

day rooms that become bedrooms at night.

Bedrooms cut in two with partitions.

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I can't see how there can be a cheap SVR anywhere, the fact that it is *variable* means the lender can increase it at any time/reason, correct me if i'm wrong.

I've never seen an SVR advertised below 4%, currently they seem to range from 4.5% - 6.0%

There are many people sat on a (relatively high) SVR because their loan is a small amount with low LTV, so it's 'affordable' or are too lazy to find a better rate.

Surely anyone on a ongoing cheap rate must be on a long term tracker deal, not the SVR.

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Guest eight

I can't see how there can be a cheap SVR anywhere, the fact that it is *variable* means the lender can increase it at any time/reason, correct me if i'm wrong.

I've never seen an SVR advertised below 4%, currently they seem to range from 4.5% - 6.0%

There are many people sat on a (relatively high) SVR because their loan is a small amount with low LTV, so it's 'affordable' or are too lazy to find a better rate.

Surely anyone on a ongoing cheap rate must be on a long term tracker deal, not the SVR.

You need to read the other thread. Lloyds/C&G were at one time offering a "lifetime" SVR of base +2%. Obviously they can't wriggle out of it now, or they would have done. We have such a mortgage. Would be insanity to change. Even if the SVR is higher, smaller balances can make it pointless paying fees to move to a fix.

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You need to read the other thread. Lloyds/C&G were at one time offering a "lifetime" SVR of base +2%. Obviously they can't wriggle out of it now, or they would have done. We have such a mortgage. Would be insanity to change. Even if the SVR is higher, smaller balances can make it pointless paying fees to move to a fix.

I read the other thread first. However they worded it, it's a lifetime tracker, not SVR (it can't really be compared with SVR's of the rest of the banks). Guess it was relatively expensive a the beginning? they are still making money on it, and know that most will want to move house at some point.

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Guest eight

I read the other thread first. However they worded it, it's a lifetime tracker, not SVR (it can't really be compared with SVR's of the rest of the banks). Guess it was relatively expensive a the beginning? they are still making money on it, and know that most will want to move house at some point.

I think we initially had a two year fix of something like 4.5% - this was in 1999/2000 time. Been on this "SVR" ever since.

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I can't see how there can be a cheap SVR anywhere, the fact that it is *variable* means the lender can increase it at any time/reason, correct me if i'm wrong.

I've never seen an SVR advertised below 4%, currently they seem to range from 4.5% - 6.0%

There are many people sat on a (relatively high) SVR because their loan is a small amount with low LTV, so it's 'affordable' or are too lazy to find a better rate.

Surely anyone on a ongoing cheap rate must be on a long term tracker deal, not the SVR.

That's how I understand it too. Some recent posts have been confusing me on this matter. Zugzwang reported a few months ago how 50%+ of mortgages on SVR (and others who have lower-priced trackers have lower-priced trackers). (I recall it didn't seem to be a lot of mortgage debt in total - to me at least - vs house prices)

I still use this as an at-a-glance resource, for latest deals and SVRs.

http://themortgagemeter.com/#/latest_changes

and where you can input your own info / loan to value etc

http://themortgagemeter.com/#/best_buys

http://www.housepricecrash.co.uk/forum/index.php?/topic/183593-latest-changes-to-mortgage-rate-deals/

Edited by Venger

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Probably right. Lots of godawful extensions going up near me, trying to create a little more living space as cheaply as possible, to hell with aestetics. Who needs a front garden or space to walk down the side of their house anyway?!

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You need to read the other thread. Lloyds/C&G were at one time offering a "lifetime" SVR of base +2%. Obviously they can't wriggle out of it now, or they would have done. We have such a mortgage. Would be insanity to change. Even if the SVR is higher, smaller balances can make it pointless paying fees to move to a fix.

Err, isn't base plus X% by definition a tracker.

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My wife grew up in a 2 bedroomed house with her grand parents, parents, 3 sisters and a brother.

People can be flexible.

Air beds,

bed settees,

day rooms that become bedrooms at night.

Bedrooms cut in two with partitions.

Now you've made me sad haivng grown up in a small 3 bed with 9 of us...

People are less flexible than years ago. Some of the hardships my kids have to go through (no ipads or TV before dinner) make me think they'd baulk at what most of us had to do as kids.

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Err, isn't base plus X% by definition a tracker.

I don't know the detail of the C&G product, but Nationwide the BMR guarantee is that the mortgage rate will never be more than 2% above the base rate. It's fatuous to argue that these products are trackers just because emergency rates (which were presumably unimagined by the offering bank when the product was being prepared) mean they are now behaving like trackers because the bank is (naturally) setting them at the highest possible level.

On the thread more generally, whilst SVRs will be affecting maybe a million mortgaged households, IMO it will still be less of a factor than households where people who have either a self-certified mortgage against inflated representations of income or an interest-only mortgages, or a product that combines the delights of both and that this is what is trapping them. 'Legacy' SVRs are a component of the explanation of the moribund market but not its root cause.

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High SVR interest only or a more costly cheaper 2y fxd repayment.....liar loans mean higher cost of borrowing to linger longer.....house always to be owned by the lender.

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My wife grew up in a 2 bedroomed house with her grand parents, parents, 3 sisters and a brother.

People can be flexible.

Air beds,

bed settees,

day rooms that become bedrooms at night.

Bedrooms cut in two with partitions.

Shouldn't living standards be going forwards not backwards?

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Now you've made me sad haivng grown up in a small 3 bed with 9 of us...

People are less flexible than years ago. Some of the hardships my kids have to go through (no ipads or TV before dinner) make me think they'd baulk at what most of us had to do as kids.

I blame the parents.

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