Northern Rock cut a scandalous 0.15% from Nov 1st

Leon_W

The very government owned bank that made an emergency cut in interest rates of 0.5% has said it will cut its' SVR by 0.15% !

That's really kicking the most hard up sector in the whole mortgage market. The rate will "fall" to 7.34%. An absolute discrace.

Regards

minimike2

At least they have cut it. They were under no obligation to.

lisyloo

I agree, but there was no obligation for anyone to sign up to this.
If the people who signed up for these mortgages didn't want to be on a lenders SVR, then perhaps they shouldn't have taken that risk?

I realise none of us have crystal balls, but people have to take responsibility for the decisions they make, and if they signed up to a short term deal going on to an SVR, well no-one held a gun to their head, did they?

I'm going onto a BOE tracker.
I realise the risks I'm taking and those I'm not.

Leon_W

Come on now.

The tax payer bailed this out. The government want to see a return to a more competitive lending arena and yet the very bank that is owned by the taxpayer sticks two fingers up.

Stuff the "no obligation" Mike. They have a moral obligation.

So it's alright for every other bank to take all the risk of money lending but not us first eh ? A case of do as I say and not as I do in my book and a complete cop out.

Regards

lisyloo

and yet the very bank that is owned by the taxpayer

I'm not sure this is correct.
I know that money has been lent, but that's not the same as buying ownership and don't believe the governement has any voting rights.
This is still run as a private business so what does "moral obligation" have to do with it.

Speaking morally I actually agree with you, but I'm not sure what that has to do with business.

So it's alright for every other bank to take all the risk of money lending but not us first eh ?

Not many other banks lent people 120% LTVs, so they aren't stuck with a load of risky deals.

Noz

Surely the more unattractive the rates, the quicker mortgages are going to be repaid?

Wutang_2

Why does everyone seem to mention the word "scandal" whenever there is a mention of Northern Rock??

What about the goal that never was???

curs82

lisyloo wrote: »

I agree, but there was no obligation for anyone to sign up to this.
If the people who signed up for these mortgages didn't want to be on a lenders SVR, then perhaps they shouldn't have taken that risk?

I realise none of us have crystal balls, but people have to take responsibility for the decisions they make, and if they signed up to a short term deal going on to an SVR, well no-one held a gun to their head, did they?

I'm going onto a BOE tracker.
I realise the risks I'm taking and those I'm not.

I accept responsibility for taking out a together mortgage, which we were advised by the broker was the best option. We was also told not to worry about any SVR since house prices will keep rising and in 2 years we would be able to use the equity in our home to remortgage and get on a better rate.

We were ftb and knew very little about how mortgages worked barring what we read up on. This is why we used a broker, as we were confident they would be able to help us through the process.

Nobody held a gun to my head, but when a broker advises you what the best option is you tend to believe them.

I'd love to be able to remortgage and move away from NR but my LTV is way too high to even consider being able to. By keeping the SVR scandalously high NR are effectively leaving me with no choice but to stay with them on the SVR for the foreseeable future.

At least if they cut the SVR to more of a reasonable % we could begin to consider putting extra money to overpay as we have previously, instead, the SVR has now eaten up any disposable income.

martinman3

lisyloo wrote: »

I'm not sure this is correct.
I know that money has been lent, but that's not the same as buying ownership and don't believe the governement has any voting rights.
This is still run as a private business so what does "moral obligation" have to do with it.

It all happened what seems like a long time ago but the government nationalised Northern Rock. It is no longer a private business and the government has full control of it.

minimike2

curs82 wrote: »

Nobody held a gun to my head, but when a broker advises you what the best option is you tend to believe them.

If your property was now worth twice what it is, would you think that the advice you had was the best?



If you want to lay blame then blame the American banks who started this all off.

curs82

Yes I would, but the fact remains that its not.

So although i understand the broker couldn't see what would happen 2 years down the line, the fact that no warning was given around a 'worse case scenario' like what has happened has made me somewhat peeved.

I'm not looking to blame anyone, its my money, my responsibility so I will deal with it as I can.

Admittedly NR are a profit making organisation and so if they can make more they will by keeping the SVR high, but, how many people will ever go to NR again for a mortgage when this is the type of service it is giving existing customers?