GMAC SVR trap!

thebigboss_2

I spoke to GMAC who said they have no plans to pass on any cuts but will "sit tight and recoup" i.e. make as much as they can from their existing borrowers.

They have no new products and if you, like me and thousands of others got an 89% Buy To Let that you now cannot remortgage away from because of the lack of deals and the high loan to value/falling property prices then GMAC have got you right where they want you and they are going to squeeze.

My question is this, how can the government force some lenders to pass on the cuts but not others? How is that treating customers fairly? when will they do something about it?
:mad:

dunstonh

My question is this, how can the government force some lenders to pass on the cuts but not others?

The Govt cannot force any of them. It can only add to the Daily Mail rants and hope the lenders listen.

How is that treating customers fairly?

You are getting what you agreed to. That is fair.

Perhaps you should have thought more about entering into a high risk transaction such as a mortgaged buy to let (and at 89% LTV it was high risk). If you cannot accept the risks that go with a high risk investment then you shouldnt enter into it.

Sorry, no sympathy from me.

luckyfool

Is your Gmac Mortgage on an actual SVR . . . or is it not a margin above 3 month libor rate? If its the latter than it resets every 3 months and would be likely to fall then.

thebigboss_2

dunstonh wrote: »

The Govt cannot force any of them. It can only add to the Daily Mail rants and hope the lenders listen.



You are getting what you agreed to. That is fair.

Perhaps you should have thought more about entering into a high risk transaction such as a mortgaged buy to let (and at 89% LTV it was high risk). If you cannot accept the risks that go with a high risk investment then you shouldnt enter into it.

Sorry, no sympathy from me.

I'm not looking for sympathy, I accept the risk and am paying for it now. I want what is fair, that is a level playing field. I hope you offer your own high risk clients some sympathy.

thebigboss_2

luckyfool wrote: »

Is your Gmac Mortgage on an actual SVR . . . or is it not a margin above 3 month libor rate? If its the latter than it resets every 3 months and would be likely to fall then.

Thanks, it is an svr product, currently 6.99%

_Andy_

thebigboss wrote: »

I'm not looking for sympathy, I accept the risk and am paying for it now. I want what is fair, that is a level playing field. I hope you offer your own high risk clients some sympathy.

Your mortgage offer explicitly stated you would go on to an SVR.
You are now on an SVR.
How is that not fair?

koexelek

Can't see GMAC putting their rate down.

They are desperate to offload mortgages. They don't want to be offering people good deals to stay

payless

a lot of people (regardless to lender) will be in a SVR trap.

lenders will need to consider the quality of their book and the cost of funding this book ( which may not be linked directly to base, and may vary depending on quality) when setting their SVR / actions towards Base drops.

I think if the lender can show that they have taken reasonable actions in balancing these figures and act accordingly then thats fair- if not then yes maybe taking advantage but not sure if the govt will intervene in a commercial decision .

thebigboss_2

_Andy_ wrote: »

Your mortgage offer explicitly stated you would go on to an SVR.
You are now on an SVR.
How is that not fair?

What's not fair Andy, is that some lenders pass the rate cuts on and some don't. Why don't you understand that? You seem to have a very hard attitude towards consumers, do you work for a lender?

_Andy_

thebigboss wrote: »

What's not fair Andy, is that some lenders pass the rate cuts on and some don't. Why don't you understand that? You seem to have a very hard attitude towards consumers, do you work for a lender?

No, and I don't work in financial services (any more). Not being 'hard' at all, I just think some people need to accept that when you agree to a contract that involves going onto an SVR that has no guarantes that it will rise or fall in line with BOE BR then it's no good complaining when you go on to said SVR.

Ultimately any lender is there to make profit.

thebigboss_2

payless wrote: »

a lot of people (regardless to lender) will be in a SVR trap.

lenders will need to consider the quality of their book and the cost of funding this book ( which may not be linked directly to base, and may vary depending on quality) when setting their SVR / actions towards Base drops.

I think if the lender can show that they have taken reasonable actions in balancing these figures and act accordingly then thats fair- if not then yes maybe taking advantage but not sure if the govt will intervene in a commercial decision .

That's a fair comment payless, however I would like to point out that the government intervened in favour of the banks with taxpayers money.