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"Thousands" with BOE trackers face mortgage interest rate rise
Comments
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Ultimately this will be a good thing for the housing market in the longer term. Start getting people used to higher mortgage interest rates.
And when the BoE rate does eventually rise the banks won't have to pass the rises on straight away and they can accept smaller margins.0 -
Are all Bank of Ireland BTL mortgages affected, we have a mortgage which was formerly with Bristol & West, it was a 3 year fixed that then converted to +1.75 of the Bank of England base rate.
can anyone tell me if this will affect me?
thanks0 -
Rule one, dont get a mortgage with a lender that lives in a caravan. Much better to bank with an international, fully backed by a country that has huge capital reserves.
Namely HSBC.0 -
I do not know how this mortgage product was marketed but if the product was advertised in large print as tracking the BOE base rate how much can they rely on small print enabling them to renege on it. When endowment mortgages were marketed as only being likely (based on projections) to pay off the mortgage, it was quite clear from the small print that the projections were not guarantees yet so many people were successful in claiming they had been mis-sold the product. What is the difference?Few people are capable of expressing with equanimity opinions which differ from the prejudices of their social environment. Most people are incapable of forming such opinions.0
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I do not know how this mortgage product was marketed but if the product was advertised in large print as tracking the BOE base rate how much can they rely on small print enabling them to renege on it. When endowment mortgages were marketed as only being likely (based on projections) to pay off the mortgage, it was quite clear from the small print that the projections were not guarantees yet so many people were successful in claiming they had been mis-sold the product. What is the difference?
I guess the difference is, if the reports are correct, without doing this, the bank will go under.
That involves a lot more hardship to a lot more people. So is it better to enact a clause, or to have the whole bank go under?
I'm pretty sure the bank will have taken legal advice before doing this. I can't see them opening themselves up to massive compensation claims, especially in todays environment. May be proven wrong, extraordinary things happen in courts today which sometimes defy belief.0 -
If they are short of capital, it would be better for them to terminate their mortgages to certain percentage of their total book, with say 3 months for the motgagee to find a new deal. Could be sweetened by a small reduction in capital (a years interest?) for the first 10% or so to port quickly.
Capital inflows would be big enough to shore up their books. Why doesnt the irish regulator or central bank put them under emergency measures? A good bank to short no doubt!0 -
Mon dieu! The humanity!
I can feel myself welling up right now.
Oops, false alarm, that was actually wind.
Do carry on................0 -
Savers want higher interest rates.shortchanged wrote: »Ultimately this will be a good thing for the housing market in the longer term. Start getting people used to higher mortgage interest rates.
And when the BoE rate does eventually rise the banks won't have to pass the rises on straight away and they can accept smaller margins.
Mortgage holder want lower interest rates.
Why do you think higher interest rates would be good for the housing market?0 -
shortchanged wrote: »Ultimately this will be a good thing for the housing market in the longer term. Start getting people used to higher mortgage interest rates.
That's a really good idea. I'm going to take all the insulation out of the roof so I can get used to higher gas bills.shortchanged wrote: »And when the BoE rate does eventually rise the banks won't have to pass the rises on straight away and they can accept smaller margins.
Yes because all those extra payments will go into a special account so they can be given back when rates rise. How sweet.0 -
These low rates as I've said before are a danger because people get lulled into seeing them as the 'norm'.
You can see that some posters on here are saying that a rate of 4.49% is going to cripple them. I'm sorry but..........0
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