Wednesday, August 22, 2012
Santander SVR mortgage rate to rise to 4.74%
BBC
Interest rates rising - other banks sure to follow - will put more downward pressure on house prices
Posted by stuartking @ 07:45 PM (2093 views)
16 thoughts on “Santander SVR mortgage rate to rise to 4.74%”
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general congreve says:
Oh no it won’t, not immediately anyway. They’re just squeezing those that can afford to pay harder, any others driven into default by this will just be given forbearance. This is a calculated balance sheet repair strategy.
stuartking says:
I think it will put downward pressure on house prices because of the ‘affordability’ criteria being used to govern mortgage lending. Higher interest rates mean one of three things or a combination of them: a) higher deposits will be required; b) fewer people will be able to afford, so fewer buyers; c) sellers will have to reduce prices to attract buyers.
As you say, forbearance could lead no change to the number of buyers being foreclosed but that doesn’t mean house prices won’t fall.
alan says:
Money Marketing say it takes effect from Oct 3rd.
Santander have problems raising deposits in the UK. Its because of their Spanish heritage (Euro + property problems) said the cashier I met in the chip shop.
khards says:
stuartking – you are correct. Here in ROI there have been almost zero repossessions (400/yr I think), that did not stop prices falling.
Fundamentally not much difference with the UK except for the supply/demand side of housing. The supply/demand of credit must be around the same.
jack c says:
Slightly off topic – Abbey (Santander) offered free business banking and now all business accounts are being transferred to a new account that will be charged at £7.50 per month.
Back on topic – a steady rise in SVR’s which we have seen from the major lenders who dominate the market surely must put downward pressure on house prices. I can’t see how UK house prices can defy gravity indefinitely.
mark wadsworth says:
SK, if only, if only.
a saver says:
Big deal 4.74%! It’s all too slow.
mark says:
jack that is purely criminal however they probably have small print which rescues them from false advertising, they used to advertise free business banking for life , life of what, a gnat?
mark says:
just found this article
http://www.dailymail.co.uk/news/article-2192139/Diana-Lee-murder-Businesswoman-beaten-set-gone-secret-date-cost-life.html
read the 1st line on article
of her £500,000 house in the village of Cranage, near Holmes Chapel, Cheshire
what has the value of the house got to do with it?
Hpwatcher says:
The squeeze is on again, there is only one way this will eventually end and its not going to be pretty. My advice is diverse investments:-
Covered calls(options) for income
Rental income (yes property)
Buying selling on Ebay (cars,caravans etc)
And the betting exchanges i.e edgeinvestor co uk
All standard investments are dust.
cornishman says:
jack c said…Slightly off topic – Abbey (Santander) offered free business banking and now all business accounts are being transferred to a new account that will be charged at £7.50 per month.
– Jack, I have a ‘free’ Santander Business account. They haven’t said anything to me about any charges. Where did you get your info from? Is it only new accounts that they will charge for?
general congreve says:
@2 – Fair point SK!
mark says:
cornishman
friends of mine have just had a letter informing them of the new business charges.
co-op seems to be cheaper for business accounts
cornishman says:
@ mark – thanks. If I get a letter about new charges I’ll look into what the Co-op offers.
jack c says:
@cornishman (Thursday, August 23, 2012 10:48AM) a mortgage broker I know flagged it up yesterday however check out
http://www.bbc.co.uk/news/business-19012945
Sorry to pour cold water on everyones Cornflakes
cornishman says:
Thanks Jack.