GMAC SVR trap!

dunstonh

I agree with all the pro lender comments, let's hear it for the lenders and their profits, their robust morals, their integrity, their commitment to social justice etc.

Hold on a minute, thats a bit rich coming from you. You are a landlord who is making a profit out of putting a roof over someones head. You are in business to make money but are critical of other businesses who do the same?

If you want social justice, why not rent out your property at a loss?

Why some and not others?

The mainstream lower risk lenders have mostly passed it on or are in the process of doing so. The higher risk lenders cannot afford to pass some or all of it on.

Do you lower the rent you charge every time your interest rate goes down or do you pocket the difference?

silvercar

The answer is to reduce your LTV, either use some savings or borrow elsewhere to reduce the size of the mortgage. Once the LTV drops to a level that you can get a re-mortgage with a different lender. If you reduced the size of the mortgage by X and borrowed X on your residential home, you would still be entitled to the interest being considered a letting expense.

luckyfool

thebigboss wrote: »

I agree with all the pro lender comments, let's hear it for the lenders and their profits, their robust morals, their integrity, their commitment to social justice etc.

Being a business and doing what is right are NOT mutually exclusive. All I'm trying to get people to think about is why the government pressured SOME lenders to pass on the full cut and not others. I still pay my BTL mortgages, they are a long term investment that will dip every now and then. Lets stick to the issue. Why some and not others?

Gmac are a partly owned subsidiary of General Motors. General Motors are in deep financial trouble in the US and are on the verge of bankruptcy . . . maybe you should volunteer to pay a higher interest rate on your mortgage in the interests of social justice and to help out the employees of GM?

Rikki

I've had my tracker mortgage for many many years.
I took the chance and my rate went up and up over those years. It was the risk I took . I didn't look for sympathy or blame the bank. It was my decision and you take the rough with the smooth.
Now I am benefiting from that decision all I hear are people complaining that they have been miss sold their fixed rate, or they borrowed too much and are now stuck with the banks SVR rate.

We all made a choice when we entered into our agreements and we have accept sometimes we don't make the best decisions.

We can't always expect somebody else to bail us out, bank or government.

Hind sight is a wonderful thing.

I'm sorry if I sound harsh but I've had a good few years where I struggled but I got through it by the skin of my teeth.

chrisbee_2

Gmac sold my mortgage onto a company called JP morgan ? i contacted them to ask what there svr is and its a whopping 8.55% ouchhhhhhhh . just hope i can get a new deal in 12 months time ?????

and YES the goverment should make ALL lender pass on the rate cut!

Dammam

I'm probably being terribly naive I know, but the reason that our Government (and others) are propping up banks and encouraging interest rate drops is to help consumers and stimulate the economy. With the economic downturn a lot of people will find it increasingly difficult to make ends meet.
It seems a little short sighted that companies such as GMAC should hang in there for their pound of flesh rather than to pass on savings and, hopefully, ride out the recession with their customers rather than all go down the pan together. It's really that kind of attitude from the financial community which has helped us all into this mess in the first place and which will see GMACS 'assets' steadily decrease in value.

elliebellie

Hi

I have a SVR mortgage(normal mortgage, not buy to let or anything) with GMC-RFC and have just received a letter saying that the rate has just reduced by 1.5% in line with the BoE rate cut, but am now concerned that a poster (chrisbee, I think, soz if wrong name) has said their mortgage has just been sold on to JP Morgan.

My contract says that my mortgage will not go 1.95% above BofE rate, would this still apply if sold on??

Any advice, anyone, please?

hearts

elliebellie wrote: »

Hi

I have a SVR mortgage(normal mortgage, not buy to let or anything) with GMC-RFC and have just received a letter saying that the rate has just reduced by 1.5% in line with the BoE rate cut, but am now concerned that a poster (chrisbee, I think, soz if wrong name) has said their mortgage has just been sold on to JP Morgan.

My contract says that my mortgage will not go 1.95% above BofE rate, would this still apply if sold on??

Any advice, anyone, please?

When they sell it on the terms and conditions should remain the same.

thebigboss_2

I am, I'm on the GMAC SVR remember....

dunstonh wrote: »

Hold on a minute, thats a bit rich coming from you. You are a landlord who is making a profit out of putting a roof over someones head. You are in business to make money but are critical of other businesses who do the same?

If you want social justice, why not rent out your property at a loss?




The mainstream lower risk lenders have mostly passed it on or are in the process of doing so. The higher risk lenders cannot afford to pass some or all of it on.

Do you lower the rent you charge every time your interest rate goes down or do you pocket the difference?

thebigboss_2

I have had written confirmation this morning that GMAC are reducing their SVR to 5.75% with effect from December 2008 payments. not the full whack but a good chunk of it. :beer: :j :T