lowest standard variable rate? and can we move from 1 svr to another banks svr?

IPP-Believer

Well I think this is one of those agree to disagree moments. I do understand the point you are making but giving people an oppourtunity to fix their rate is not increasing the risk of default.

I think it is very unfortunate that people who have bought their property now face the day to day worry of being on the standard variable rate.

If they have been paying their mortgage and do not have any credit problems than why should they be deprived of a fixed rate if the bank or building society can make those funds available.

It would be a lot cheaper than having a series of repossessions if interest rates rise both for the bank and the economy.

Whether going forward 90 - 100% mortgages should be available to new borrowers is a different matter.

neverdespairgirl

feisty1 wrote: »

'fraid u will have to stay with yr current lender on SVR, however if this is going to present u with difficulties go and speak to them. Youdo have a few months & as u know things can change pretty rapidly. However it will be sometime b4 we see 100%& 95% mortgages return to the marketplace. If yr in a position to and yr mortgage conditions allow try to overpay the mortgage to reduce the capital sum

I don't mean to be rude, but I am dyslexic and find your posts very hard to understand.

treliac

IPP-Believer wrote: »

I am really sorry to hear that.

It leaves a very bitter taste in the mouth that there is money to pump into the banks but none for people who find themselves in your position.

Lets hope by next year the government offers to use one of these banks we all own to help out people who owe more than the mortgage is worth due to the drop in property prices.

Not sure why they would do this. It didn't happen for all the people who had to wait years to recover from negative equity in the 90s.

koexelek

beecher wrote: »

I'd be very concerned if banks started offering deals to people whose mortgage is higher than the value of their home.

there is more chance of a frost on the sun than that happening in the forseeable future.

IPP-Believer

treliac wrote: »

Not sure why they would do this. It didn't happen for all the people who had to wait years to recover from negative equity in the 90s.

I dont think I phrased that particular post very well.

I am not saying that the government should pay peoples mortgages for them.

But if a bank is owed £100k why not let the person have another fixed rate when they come to the end of their deal, they still owe £100k if they are on the standard variable rate. So the risk has not increased.

In fact giving their customers some certainty would be safeguarding their position if interest rates rise.

From a business point of view, people defaulting is a bigger risk than any extra profit they can make on the standard variable rates.

I am sensing i am on my own on this one though, so I will quit whilst behind.

feisty1

IPP Believer

I support u 200%

Imposter67

Similar theme as above but different context.

ARe there any fees for switching to another bank's SVR at end of a 2 year fixed deal?

dimbo61

I think you will have to pay fees I67 as any lender will want a survey, searches,legals,set up fees ETC even to go onto SVR