Wednesday, June 22, 2011

Interest rates could go up? Who would’ve thunk it?

Which? warns over standard variable rate mortgages

Consumer group Which? is accusing banks and building societies of putting the squeeze on homeowners who have standard variable rate mortgages. Which? warns that thousands will be pushed into financial difficulty when interest rates go up. More than 40% of mortgage borrowers are now on standard variable rates, which kick in after cheap introductory mortgage deals expire.

Posted by little professor @ 04:59 AM (1714 views)
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5 thoughts on “Interest rates could go up? Who would’ve thunk it?

  • What is it with the BBC? Cancerous odious little organisation, who want to create debt slaves.

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  • Is it getting to that time of the month all ready? Must be the MPC meeting time soon.

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  • The interest rate on his Egg mortgage dropped by just 1.5% when the Bank of England cut official rates by 4.5% after the financial crisis, he said. “I was very puzzled initially and then you just get angry.”
    Well if you want a mortgage that tracks the base rate, get a tracker mortgage – the clue’s in the title.

    The Council of Mortgage Lenders said that the standard variable rate, or SVR, is dependent on the cost of attracting deposits from savers, rather than the Bank of England.
    Well yes, but it’s also dependent on what margin the bank wants to make. If it was purely dependent on rates paid to savers then mortgages really would be cheap.

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  • TT @3, there appears to be a fundamental level of stupidity & ignorance with the public & worse, journalists. Whoever wrote this doesn’t understand that mortgage rates, valued off LIBOR GBP yield curves, don’t relate at all to the 0.5% base rate.

    Blind leading the blind.

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  • doomwatch – I completely agree. As numbers go, there aren’t many that have a more significant impact on people than LIBOR, yet most people don’t know what it is. I’ve been saying for years they should teach this stuff in school and call it Life skills or something. They should also teach parenting skills but don’t get me started.

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