Wednesday, November 24, 2010

For suggesting that mortgage customers could benefit from falling interest rates if they took out a

Halifax 'misleading borrowers' over tracker mortgages

Which, the consumer lobby group, has attacked Halifax for suggesting that mortgage customers could benefit from falling interest rates if they took out a tracker mortgage. These loans usually have interest payments linked to the Bank of England's official rate.

Posted by mark @ 02:17 PM (1942 views)
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8 thoughts on “For suggesting that mortgage customers could benefit from falling interest rates if they took out a

  • sibley's b'stard child says:

    Either Halifax have a good idea which way IRs will go in the near future or some IT monkey didn’t get around to updating their website. I presume it’s the latter though i’d rather it the former.

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  • Can’t believe I’m actually seeing this from a Banks perspective, but it’s a tracker mortgage… If the base rates go down, the mortgage rate goes down, if it goes up, the mortgage goes up. Do Which honestly expect them to put on their website “If you want to pay more for your mortgage when interest rates rise then a tracker rate mortgage could be the perfect deal for you.”
    And besides, if a borrower takes out a tracker with a serious expectation that rates might fall from here then frankly they deserve everything they get.

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  • One has only to look at insurance, heating bills, travel, and other legal and essential requirements to see where inflation and interest rates are going. The fact that banks are pushing this tracker deal should speaks volumes.

    Still very bullish on oil and still holding, just to ‘cap’ this off.

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  • Isn’t this typical of banks? – taking advantage of the public’s low level of financial literacy by pushing a product that is almost guaranteed to be in the banks’ favour and cost their customers more money.

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  • So interest rates are going to go up?

    I’m not convinced at all. Low rates have become baked in to the economy already. Can you see what would happen to shares and banks’ capital if rates went up? The Bank of England can.

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  • There is no way that all those multiple house owning MPs would allow rates to rise if they can delay things. If rates go up, house prices are sure to fall – on the basis of simple affordability.

    A lot of homeowners are paying extra amounts off their mortgages to reduce capital, which is also what the banks want, as it will cushion their loans against negative equity caused by house price slippage. Look at Nationwide’s figures for arrears and repossessions – they are extremely low on a historical comparison, despite the current austerity measures.

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  • Mark @ 6, burning trees is for beginners.It’s far better to soak some old tyres in petrol and burn those. Remember to take the washing off the line and close your windows first!

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  • mw

    excellent idea, great way to recycle those old tyres I have, wonder if I should chuck the old car battery on too

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