Tris Posted April 4, 2008 Share Posted April 4, 2008 Mortgages that track the own lenders rate are generally used when initial period terms end, these are indeed terrible and are what lenders call their standard variable rate (SVR) as opposed to the BoE base rate (BBR). Actually they are quite different. SVR is usually there to soak up people who haven't bought a new deal and is usually quite expensive. It tracks nothing. For example, Barclays currently offer a SVR mortgage at a silly rate above 7% and a "Barclays Base Rate Tracker" which has a much more attractive initial rate. Perhaps I didn't state it clearly enough, thats why I said they track the 'lender's' rate. They do track the rates to a point but at their own discretion. And an example of Barclays BBRV is exactly so - and they usually are at the present day around 7.0+. They are terrible and if you are on one of these, please find a new one! The crunch will get worse before it improves. The UK is on the verge of a collapse in the property market. Lets hope the IOM holds as steady as possible. Link to comment Share on other sites More sharing options...
Slim Posted April 4, 2008 Share Posted April 4, 2008 It would have been easier for Barclays to stick a big sign outside their branch saying "Go somewhere else". Where else? Halifax is now only doing good deals for those with a 25% deposit. Things are going to be bad for people with 2 year fixed mortgages, when you come to renegotiate, you're going to face a bigger monthly payment. Time to start saving folks. http://news.bbc.co.uk/2/hi/business/7330207.stm Oh and my credit card company reduced my limit from 4k to 600 quid, I hardly ever use it, pay it off every month, seems I'm not their kind of customer either. Link to comment Share on other sites More sharing options...
Miss Take Posted April 4, 2008 Share Posted April 4, 2008 For a couple of reasons, my spend on my credit card last month was much higher than usual. Within a couple of weeks I had a letter from the company saying 'good news! We've put your limit up by a couple of grand'. I hate that. It's not exactly responsible lending is it? I'm gonna ring them and tell them off and get them to put it back down. Link to comment Share on other sites More sharing options...
thesultanofsheight Posted April 4, 2008 Share Posted April 4, 2008 [The crunch will get worse before it improves. The UK is on the verge of a collapse in the property market. Lets hope the IOM holds as steady as possible. Yeah right because the IOM has a special invisible immunity jacket that means that means property here is magically different to the UK. The IOM deserves a correction of at least 40% based on the pile of overpriced shite sellers have been getting away with for years here. Can't wait to see those Bentleys being handed back by estate agents who told you the IOM property market was so special that it can only ever go up. Link to comment Share on other sites More sharing options...
localyokel Posted April 4, 2008 Share Posted April 4, 2008 If your bank is poor at handing over drop back to customer's or has suffered more in the crunch, then look elsewhere. Look elsewhere for what? Endure the cost of legal fees and all the associated bullshit of changing lender at your full cost? Get real. In the IOM its more costly to switch lenders than in the UK and the lawyers fees will eat up a few years of savings. Link to comment Share on other sites More sharing options...
Minxie Posted April 17, 2008 Share Posted April 17, 2008 When I was in Lloyds Bank at lunchtime today I noticed that they were advertising a mortgage advice day. It is on this Saturday at the Slug & Lettuce (I think a free drink was mentioned). I didn't get any more information so you would have to give the branch a call, but I did see something on the poster about them waiving the fixing fee if you sign up on that day - so could be worth it to save yourself a couple of hundred quid. Link to comment Share on other sites More sharing options...
Mission Posted April 17, 2008 Share Posted April 17, 2008 I saw a sign in the Isle of Man Bank yesterday for a new 100% mortgage. Link to comment Share on other sites More sharing options...
studmuffin Posted April 17, 2008 Share Posted April 17, 2008 Was having a mooch on the moneyfacts website before and there are still 100% mortgages being offered (in the uk) with rates in excess of 7.3% mind ouch Link to comment Share on other sites More sharing options...
gazza Posted April 17, 2008 Share Posted April 17, 2008 I saw a sign in the Isle of Man Bank yesterday for a new 100% mortgage. my sister just got one of them last month, just heard on the news that the banx of england is going to take over the banks mortgags in return for goverment bonds, so thay can still offer ppl mortgages, why to me does that seam insane, if ppl cant afford them why back them, i think it all end up in tears in a few years, Link to comment Share on other sites More sharing options...
ai_Droid Posted April 17, 2008 Share Posted April 17, 2008 just heard on the news that the banx of england is going to take over the banks mortgags in return for goverment bonds,so thay can still offer ppl mortgages, why to me does that seam insane, if ppl cant afford them why back them, i think it all end up in tears in a few years, Don't forget, mortgages are pretty safe provided the property market holds up, and backing the mortgages will hold the property market up. Link to comment Share on other sites More sharing options...
gazza Posted April 17, 2008 Share Posted April 17, 2008 just heard on the news that the banx of england is going to take over the banks mortgags in return for goverment bonds,so thay can still offer ppl mortgages, why to me does that seam insane, if ppl cant afford them why back them, i think it all end up in tears in a few years, Don't forget, mortgages are pretty safe provided the property market holds up, and backing the mortgages will hold the property market up. as long as the property market holds up, if it dont then would hate to think of the out come, which b4 it diden really matter to me, but as im now in the building indusrty it might have a big affect to me, least so far the islands houses havent gone down yet, but im sure it will at some point the thing is in the next 5-10 years everythings going to go up a lot, the days off cheap food are long gone, fuel we all know is going to go up, to be honest its the fuel price that is driveing it all up, the more fuel goes up the more food is going to go up, i think we all in for a tighting of belts Link to comment Share on other sites More sharing options...
Roger Smelly Posted April 19, 2008 Share Posted April 19, 2008 Few years ago people said it wouldnt ever happen and i said it would, looks like i aint as mad as people thought. Link to comment Share on other sites More sharing options...
Slim Posted April 19, 2008 Share Posted April 19, 2008 Few years ago people said it wouldnt ever happen and i said it would, looks like i aint as mad as people thought. Um, no. You've been consistantly doom mongering about the property market for years, saying it's about to crash. It's not crashed when you said it would, and it hasn't crashed now. Rising values in the short term isn't a dead cert, never has been, never will be. Even a drop over the next few years doesn't make a crash. Link to comment Share on other sites More sharing options...
localyokel Posted April 19, 2008 Share Posted April 19, 2008 Um, no. You've been consistantly doom mongering about the property market for years, saying it's about to crash. It's not crashed when you said it would, and it hasn't crashed now. Well maybe not in Europe yet, but in the USA it is approaching a crash looking at the data in some States particulaly places like Florida where there are no buyers even if you want to sell. There might have been doom mongers for years predicting it wrongly but its happening - and all that bullsh*t about it being a minor wobble - well this time next year we'll know. But I'm happy to go on record now and say its not going to be very nice at all and I don't give a toss if Kirsty Alsopp is on the front pages today saying otherwise. Bradford and Bingley's shares have been slaughtered because of its buy to let exposure and many other parts of the market are turning a bit toxic, RBS are having to re capitalise, Citibank have laid of 9,000 workers and writing off billions. Just where do you think the money is coming from to bail property owners out or to put new buyers into the market? Link to comment Share on other sites More sharing options...
House Posted April 19, 2008 Share Posted April 19, 2008 We got our mortgage last year so if there is a crash then we'll be in super-uber negative equity, but who fucking cares? We bought a house, a family home, we didn't buy it 'cause we wanted to get rich quick (or indeed to get rich at all), we bought it 'cause we wanted somewhere for us to live as a family and for it to be a place we knew was our own as opposed to the moving all the time that you have to put up with in rented. As long as you can make the mortgage payments, then what actually happens to 'the market' doesn't really matter, you've still got your house, which is presumably what you were most interested in the first place - the people who do stand to get stung is the buy-to-let brigade, but quite frankly I think that's a positive thing since they're a bunch of greedy bastards who've been propping up the constant price rises for far too long anyway. If folks start to lose their jobs and then their homes, then that's a different story and I have every sympathy with them, and it's disgusting that the banking system runs off cap in the hand to the UK government to beg for cash once their own avaricious greed finally comes home to roost. Doubtless the first place they'll start to save cash (on top of scamming billions out of the government) is their employees, and the fuckwitted senior management who brought us all to this situation in the first place will walk off with millions. A correction in the market is overdue, it doesn't have to mean a crash, but if it means prices stabilise for some time or fall somewhat, to give more first time buyers a chance to get a place of their own (assuming the wheels of credit for mortgages start moving again), then that's no bad thing. If you look upon your house as a home first and a long-term asset second, and can meet your mortgage payments, then all the other shit doesn't particularly matter. Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.