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How Do Mortgages Work?

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Related to the topic started by Minimula.

Why if the Halifax standard variable rate is 6.75% will they lend to you on fixed rate mortgages at lower amounts. Surely you would expect to pay a premium to protect yourself against higher rates.

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Then why offer such a lousy svr in the first place? :unsure:

Because most people are incompetant, and they don't search around for a new rate at the end of the deal (they expect to be told the deal ends), hence end up paying the much higher SVR. Just like the chap sitting next to me now, :lol::lol::lol::lol:

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Then why offer such a lousy svr in the first place? :unsure:

Because many people forget to remortgage (or just don't bother) when they come off their discounted rate and get put straight onto the SVR. The banks make a fair whack between people going onto the SVR and them remortgaging

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Because most people are incompetant, and they don't search around for a new rate at the end of the deal (they expect to be told the deal ends), hence end up paying the much higher SVR. Just like the chap sitting next to me now, :lol::lol::lol::lol:

Surely people aren't that stupid :o ......, no wait, yes they are! :P:D

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Surely people aren't that stupid :o ......, no wait, yes they are! :P:D

thats really the explanation?

a fixed rate thats lower than a variable rate certainly seems like an "expert" putting their money where their mouth is wrt IR being lower in 2 years.

Is this therefore a good example of institutionalised VI spin.

:unsure:

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You can't physically pick a mortgage which is on the SVR - tracker rates are calculated using the Bank of England base rate so only people whose mortgage deals have come to an end will be on them. These tracker rates are below their fixed rates at the moment but only by about 0.3% on the ones I'm looking at.

The Halifax write to you when your deal is coming to an end, but they still seemed fairly surprised when I phoned them 2 months before the end of mine and told me I was contacting them 'too early'. I'm sure they hope I'll forget, but I think I'd notice moving from 3.8% to 6.75%!

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  • 336 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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